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11 Reasons to Consider Lease Financing Your Equipment

1. NO Upfront Investment

Equipment, particularly large equipment like an excavator or tracked dozer, can be a costly capital expense that needs to be planned. It might take a year (or two) for the right plan to become a reality. Your money is tied to a piece of purchased capital equipment until it’s sold. If you use it well and keep it for a long time, you might get lower offers. You can pursue opportunities and keep other parts of your business if you don’t have a lot of money tied up in capital equipment.

2. Reduce long-term expenses

Many companies have maintenance teams and equipment consultants who are responsible for the upkeep of machines. This is essential to ensure that they work properly. Service must occur regularly to check hydraulics and fluids. Parts need to be changed and technology must be upgraded. Sometimes leaks can happen. Scheduling for use and transport presents challenges. It is possible to estimate rental fees while private-owned maintenance and service costs are more predictable.

3. Avoid Storage, Transport Costs

Anybody who purchases new equipment will require a storage solution that is both short-term and long-term. It is not a good idea to leave your new equipment exposed to the elements, such as the sun, rain, or wind. Poorly ventilated storage spaces and prolonged exposure to the elements will cause damage to equipment. Equipment rental is a great way to save money on space and transportation costs.

You don’t have to worry about logistics when transporting equipment from one location to another. Rental equipment can be delivered and collected at your convenience. This allows you to respond quicker to different needs at different locations. It can help you streamline your operations, save time and cut down on costs by coordinating the placement of the right equipment at the right time and place. But, such precision can prove exhausting and distract from a company’s core business. Therefore, owners and project managers might find it more beneficial to rent equipment.

4. Get Tax Time Savings

Although there are many factors that can affect a business’s tax return, rental expenses may be deductable while equipment purchased is subject to a depreciated rate for its entire life. Rental expenses tend to be more flexible than major capital-expense purchases. They might be considered project expenses in some cases or may have a tax-deduction benefit due to the nature of some types of business.

5. Keep strong borrowing power

The Internal Revenue Service views rented and owned equipment in the same way as banks. The banks don’t view rental expenses as a liability in the balance sheet. Therefore, the option to rent equipment can help a company maintain its borrowing power. Based on the facts and circumstances, ageing machines or capital-equipment debt could impact a company’s overall financial picture.

6. Reducing Waiting and the Associated Losses

Managers and owners will agree that losing time on the job site can eat into profits and compliance. It’s not good for people to wait around for equipment to arrive, or to sit idle while it stalls. A rental agreement allows you to have on-demand delivery and pick up for the time you require. You can rent a backhoe and precision arm for one week. You can also get an earthmover that will last for a month. It will arrive at your place and depart when you are done. Professionals can also service and maintain the equipment so it is less likely that it will fail or waste time while a replacement is found.

7. Track New Opportunities

Equipment rental can increase business opportunities and reduce operating expenses. Renting a piece of equipment can open up new opportunities. You might need to do some digging, grading, or other precision work. The same principle applies across all industries. There are many rental options available, so you don’t have to worry about whether you need to build roads or harvest crops more efficiently.

8. Get a competitive edge

Many companies complain that it is difficult to compete with big companies that have the most modern, high-quality machines. However, they can make it work with older machines. If equipment rental is possible, it can change this age-old trait so small competitors can obtain the same equipment for jobs if that’s the best option. You can be confident that you have the same access to machines as larger companies, and you can ask clients about which machines they will use.

9. Avoid long-term commitment

Some business owners can feel anxious about the prospect of making a large, capital-equipment investment. New and used machines can be expensive so they must be maintained throughout their useful life. You will need to keep track of warranties, make service-contract decisions, determine financing options, and consider interest rates. There are many other factors that can make buying a machine seem daunting. While capital equipment can be great to have at your disposal and available whenever you need it, it also comes with the responsibility of maintaining it, servicing it, eventually selling it or disposing of it, and adhering to regulations for the life of the equipment. Renting equipment is a great option for business owners concerned about their long-term obligations.

10. Co-ordination at your Convenience

Rental is a win-win solution for businesses because equipment is maintained and serviced by experts who make it less likely that it will malfunction or fail. The customer can always call the same experts if something goes wrong. You can rent equipment to reduce the stress and organization needed for proper maintenance, training, and scheduling. Although everyone may value the benefits of time and stress reduction differently, many fleet managers or business owners would agree that renting equipment is better than purchasing it.

11. Gain Flexible Options

There are many factors that require flexibility in today’s business market. These include a major recession and razor-thin profit margins.

Companies can rent equipment to meet the needs of niche markets, financial fluctuations, and fluctuating demand. This is a flexible option especially when it’s explored in a partnership with trusted equipment partners. A machine’s ability to perform multiple functions, whether it is rented or purchased, will justify its cost more. A machine with multiple functions, such as the ability to reach, dig and lift, would be more justified than a machine that only does one of these tasks.