There was a time when companies insisted on owning their own equipment – it was a status symbol as well as a way to accomplish goals. Those times are gone, however. As a matter of fact, more and more construction businesses are renting their equipment rather than buying it. They have good reasons to; the advantages of renting construction equipment are numerous.
Consider for a moment; do you really want to have a long-term commitment for a piece of machinery you may not use on a regular basis in an economy that seems to go up and down very quickly? Would it not be easier to find an agreement in which your investment is smaller, your cash flow more predictable, and your efficiency higher than expected? Here’s why it makes more sense to lease construction equipment and plant rather than buy it outright.
Avoid big investments
When you purchase something that takes away a big chunk of your funds (in both initial investment or down payment and the monthly installments after that), you seriously limit yourself in both cash flow and management strategies. The solution to this is often renting. By renting, you are able to avoid big expenditures that could otherwise be used in other ways to grow the business.
A fixed, predictable expenditure
Any seasoned professional who has even been only moderately successful in business will tell you that cash flow is what you should be keeping an eye on. When you rent, you have a steady, predictable and fixed rental or lease payment to pay periodically, which makes your cash flow much easier to manage and forecast.
Less maintenance and storage hassles
Depending on your contract, you can avoid many maintenance and storage expenses; this means you don’t have to hire any extra personnel, pay overtime, or establish a proper storage area. This means you save yourself a lot of money and headaches.
Because contracts are usually flexible, you should be able to upscale or downscale as the needs of your business require.
Get what you need
Every specific job requires specific equipment; when you rent, you get the up-to-date equipment for the job at hand, at that time. If you need a crane, for example, then you can easily get a crane from companies like crane hire Lincoln experts, APH Cranes & Access.
Here’s one more thing to consider when purchasing: you need to take care of logistics, and be sure you have a vehicle ready to transport the equipment from and to the construction or plant site. This is often underestimated, and it should be noted: when you are an owner, your logistical problems will increase in ways you may not have thought of. True, in some cases it’s better to buy, but before making a decision, make sure you check out equipment rental options first.