HIRING EQUIPMENT IS SOMETIMES MORE BENEFICIAL THAN PURCHASING.

When the need for a product arises, you are faced with three choices; borrow, buy or leave the task altogether. While it might seem logical to simply buy the needed equipment, there is a myriad of reasons why you might want to consider renting rather than buying. It's a given, buying would do you good, it's you forever. However, in most cases, renting can come really handy in construction. Let’s take a quick look at why we think you might prefer to rent your equipment rather than buying;

  • When you are borrowing equipment, you do not need to have or pay the full cost of the equipment up front. This can happen in cases when you are short on cash and in this context, it would be reasonable to simply rent the equipment. Your needs to get satisfied, and you don't spend much.

  • There might also be cases you would need some very high-end equipment, which you might not be able to purchase outrightly. In this situation, it is better to simply rent. With minimal cash, you get to access standard equipment that you wouldn’t be able to buy with your cash at hand.

  • When you rent equipment, there is a reduction in the intensity of maintenance using or owning such equipment would require. You only need to maintain such equipment within the period of which it is in your possession. In ownership, you would be required to do proper and regular maintenance on the equipment. This might cost you more.

  • In cases of breakdown, it is the leasing company or individual that takes the risk involved. While renting the equipment, you would possibly have paid for damages, which might be refunded if the equipment is returned as a whole piece. In cases of breakdown, you don’t have to take on the responsibility of getting it fixed once you paid to rent the equipment.

  • It is a very cost-effective process, as you don't need to spend hugely on all factors that are tied to owning equipment. As an owner of the equipment, there is a need for other fees which include; transport, registration, and storage. By saving costs on all these fees, you are able to put such cash into what really matters. This way, you are able to maximize the (limited) capital at hand.

  • By renting, you are also able to mitigate risks. Situations can change and just at the nick of time, you might find out that a piece of equipment is no longer needed on a particular project. However, if such equipment was bought, it would result in a loss as there would be no return on the investment in the equipment. If the equipment was rented, it could simply be returned and some capital might end up being refunded.

 

There are a number of other reasons why it is advisable to rent equipment that is not basic. Only basic equipment should be bought, and the others can be rented as dictated by the particular project the company is working on. However, in renting or buying, there is a need for quality to be checked. The quality of the machines and utilities might determine just how good the project becomes.

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Email: admin@ironrhino.com.au

 

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