Content provided by a guest contributor.
Owning a business can be stressful, especially when it comes to making decisions about assets. You will need to take numerous things into consideration, such as how often you will need to update the asset or equipment you need, how much the services or maintenance will cost, as well as what your budget for equipment is. These factors will help you to decide whether or not you should rent or buy an asset.
You could look into business asset rental to help your business in several ways, including allowing you to stay up-to-date with the latest technology in your industry. Not only will you be able to choose a product per project, you can also save money on maintenance costs as well. If you are looking into improving your inventory, keep reading for ways that renting an asset can save your business money.
You can easily update equipment
In order to stay ahead of the competition, you need to keep your equipment and assets up-to-date. However, purchasing new equipment every month can be highly expensive, which means that renting is a cheaper and more efficient option.
In some industries, equipment and assets need to be updated on a regular basis, and this can become highly expensive in the long run. But with renting, you can simply swap the outdated equipment for something that is more modern and up-to-date. For example, if you own a truck fleet, you can invest in trucks that are more modern and comfortable for your drivers if their current ones are outdated and do not have the latest technology fitted.
No more maintenance costs
One of the major benefits of renting equipment is that you will not have to pay for the maintenance of the pieces. The maintenance is handled by the leasing company itself, which will save you a significant amount of money each month and in the long run.
The cost of maintaining and repairing a large piece of equipment can be costly, especially if you will not be using it for every project. The leasing company will strive to keep their equipment in good condition because they need to keep customers coming in, and if you are required to pay for anything the cost will be significantly lower. If you were to buy the same piece of equipment, you would have to add these maintenance costs onto your budget.
There is no depreciation
When you purchase a new vehicle or piece of equipment, it will experience depreciation as soon as it leaves the store. This means that you have paid a lot of money for something that has lost its original value, which is detrimental to your company budget.
If you purchase equipment and only use it for certain projects, then the depreciation can be a serious blow for your business. However, with renting there is no depreciation because you are not making a purchase. You will find this highly cost-effective if you work on a project-basis as you will not be losing any monetary value. Speak to your leasing company about a per-project leasing basis and see what packages they can offer you.
Storage is only short-term
Storing equipment can be costly in itself, especially if the equipment you are storing is not used every day. Purchasing equipment means that you will need to invest in a permanent structure to store your equipment, and you might even need to use a storage company which asks for monthly costs.
But if you decide to rent equipment, you will only need a temporary solution, and the leasing company might even store the equipment on their premises. A long term storage solution can also become difficult to maintain and look after, especially if it is outside and victim to inclement weather. It will also take up space that could be used for other more important items, and you will need to insure it, which can become very expensive.
Flexibility can save funds
If you are only going to be using a specific piece of equipment for one project, then it can be expensive to have to purchase it and keep it when not in use. Renting equipment allows you flexibility and this can save you money. You might have different requirements per project and having to purchase these unique pieces of machinery can cost a significant amount of money.
However, if you decide to rent this equipment you can sign a lease of only three months or however long the project is, and only pay for this period. This will allow you to save money and use it towards other business processes, such as marketing or training your staff.
Renting an asset is the ideal solution for businesses who do not have the budget to purchase equipment, and can help you to stay up-to-date with industry trends too.
The content in this article was provided by Rogerwilco – a South African marketing agency based in Cape Town.