Hiring machinery and equipment usually makes a lot more sense than buying it, and the main reasons are well known. Hiring machinery allows you to pay for the equipment only when you actually need to use it, it allows you to get the specific equipment you need for that specific job, and there are no headaches when it comes to maintenance, professional staff, and the inevitable loss in value of the machine. But there are many other, lesser-known benefits of hiring machinery and equipment. Here’s a short list:
Increased borrowing capacity
We all know that one big advantage of leasing or hiring is that there are no long-term commitments of paying for the machinery – most equipment is expensive and requires not only a large down payment, but also many years of repayments, thereby eating up a lot of your business’ capital.
But there’s another big advantage: because you do not have large capital expenditures, your asset-to-liability ratio in the books looks a lot better. It’s your asset-to-liability ratio that banks look at first before deciding on whether to lend you money – and by improving your financial ratios, you increase your borrowing capacity as well.
Simplicity in costs
There is no need to worry about maintenance costs, repair costs, insurance costs, and so on – all your expenses will be presented to you in an organised manner in one invoice. This not only makes your accountant much happier, it also makes your financial planning a lot easier.
No storage costs
When you own equipment, you need to be able to store it in a secure place. That often means tying up space, or spending money for rent. When renting equipment, you don’t have those kinds of problems.
When you own the machine, you have to make sure you can maintain it – and this means shelling out funds for maintenance tools and trained staff. What’s more, if a machine ever breaks down, you are left with a broken machine that costs a lot of money to repair whilst it is not productive. When renting, there is no downtime. The company you rent it from simply replaces the malfunctioning machine and you can work without loss of money or time.
When you own the machine and need to transport it to a project site a good distance away, you tend to spend a lot of time and money transporting the equipment. You also run the risk of accidents or break-downs. By renting the equipment and machinery locally, you save time, money and many potential headaches.
There are plenty of advantages when renting equipment rather than buying it; and most of them are well-known. Yet additional benefits are numerous, and most of these aren’t typically considered. Regardless of whether you are looking for a reputable plant hire Preston service or a plant hire service in other areas, when it comes to getting equipment for a job, renting simply makes more sense.
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