No matter how large or small your company may be, there are going to be items that you need to use around the office or worksite that you don’t need on a regular basis, yet represent a sizeable financial investment. Equipment rental gives you the ability to use these items for much less cost and hassle. Renting large items carries several benefits.
Money Savings The cost for equipment rental is typically far less than the cost of buying the equipment outright, particularly when you will just use it for a job here and there. Even for those items that you need to use long term, you can save money through leasing because you will not be saddled with repair and replacement costs.
In addition, even if the actual cost ends up being about the same as buying the item, you will be able to preserve your cash flow. You will not need to come up with thousands of dollars to purchase the item, but rather just a few hundred for the first day, month, or week of renting it. You can then use your working capital to work for your business, market your product, and grow your income.
In addition, you may be able to deduct the cost of renting items from your business’s tax return. This adds even more savings into the equation, as you will lower your tax liability when April 15th comes around.
Flexibility Equipment rental provides flexibility for your business as well. As your business grows and changes, its needs are going to change as well. By leasing those large-ticket items, you can upgrade or downgrade as needed without a huge financial loss.
Protecting Credit If you choose to purchase large items for your business, you will likely have to turn to credit to do so due to your cash flow limits.
By renting items instead of buying them, you can leave your available credit lines open for other needs. This gives you more confidence that you can get through a slow spell or make smaller purchases when facing a cash flow shortage. You also will not need to go through a credit check with most equipment rental companies. This protects your business’s credit score as well.
Because of all of these benefits, equipment rental simply makes sense for most businesses. The next time you find your business to be in need of a large item, consider renting it instead of buying it. You will save money by doing so, thus helping your business succeed.