Just about every business needs equipment to get the job done. Construction companies need cranes and bulldozers. Warehouses need pallet jacks and so on. While owning your equipment outright can bring peace of mind once it's fully paid for, buying new equipment could actually leave your company in debt for years, especially if you are buying equipment that costs thousands of dollars. Today, some business owners are beginning to look more and more at the benefits of equipment rental. Here's how using more rentals instead of just continuing to buy brand-new equipment could free up your company's cash flow now and into the future.
You Don't Need to Put Aside Funds for a Maintenance or Repair Budget
When you rent equipment instead of buying it, you are not responsible for its maintenance and upkeep. You also don't have to worry about paying to make repairs when something breaks down. Most companies that own at least some equipment will put aside funds in case of emergency, funds that they expect to spend every year on maintenance and repairs. When you rent equipment instead, all maintenance is performed before it's delivered to you, and if it breaks down, the rental company can just provide you with a different one. This will allow you to move at least some of your emergency funds to other needs.
You Might Not Have to Pencil In as Much Money Every Month for Storage Fees
If you have a lot of equipment to get the job done, but the job isn't going on every single day of every week, you might be currently paying for storage space to keep some of this equipment out of your warehouse or place of business until you need it again. When you rent equipment, you don't have to worry about holding onto it afterwards. This will free up yet another area of your monthly budget for other purposes, or you can just pocket the money and have fewer expenses every month.
A Set Price Makes It Easier to Forecast Project Costs and Will Allow You to Move Money to Meet Other Needs
When sourcing equipment for a project, you might look at multiple vendors and you might not know exactly what the final price will be until you've actually found the right one and signed on the dotted line. But once you establish a long-term relationship with an equipment rental company, that rental will likely cost the same each and every time you order it. This makes it a hard expense that won't fluctuate from project to project, making it easier to forecast the overall cost and move your cash around accordingly.