For manufacturing and construction industries to improve productivity, there is a need to look at maximizing efficiency and versatility.
One of the main aims of business is to reduce the cost and maximize the profit. A cost-benefit analysis helps to make strong and logical decision making among like going in for a heavy equipment rental than buying it can do wonders.
The Top 5 Benefits of Renting an Equipment
Here are five most important benefits to renting equipment instead of buying it:
1. No Direct Capital Investment in buying the Equipment
Since you do not purchase the equipment but rather take it on rent or lease, there is no direct capital investment involved which is generally huge as per the nature of the equipment. It helps in making less initial expenses and frees up a significant portion of money which may be utilized in any other important part of the business.
2. Access to the Latest Technology
You can rent the latest equipment that can add value to your products and bring higher efficiency, helping you get the job done at a faster rate. There is no need to worry about any old machinery or obsolete equipment.
3. Avoid Transportation and Storage Costs
You save on space, for one. Purchased equipment need large space and proper maintenance, which incur huge expenses. By renting equipment, you can say goodbye to many major expenses.
The renting company will make the long-term storage arrangement. You can ask them to provide the machine on rent as and when required, thus saving on storage costs.
Also, if the product is being manufactured at different sites and you need to move the equipment from one site to another, the rented company can do it for you.
In turn, it helps you in responding faster to different sites thus streamlining operations and maximizes the efficiency, with minimum cost incurred in transportation and storage.
4. Helps to Save Tax
Generally, rental expenses or lease payments are deductible expenses and are usually deducted as business expenses from the Tax return thus help in reducing the net cost of the lease. Whereas, the purchase of equipment mostly needs to be depreciated over its lifetime. Thus, renting helps in legally saving money on Tax.
5. Chase new Opportunities
To have high precision and high accuracy, some projects require specialized types of equipment tailor-made to cater to their specific requirements and decorating style. Buying such specialized equipment may not be economically feasible.
Renting specialized equipment may solve such problems at a minimal cost and may open up the doors for exploring new opportunities with very low cost and with the high-end quality specialized product.
What Should You Take Note Of?
The only thing that you need to take care of when renting equipment is to know how long you would be using it, and whether it’s the right model. You would want to use it more, and it’s important to get one that has the right technology. A look at some of the top renting equipment providers can help you make a quick decision.