Choosing to rent your commercial equipment, rather than purchasing it outright, can be a smart move. This is an option than many small businesses go for when they’re just starting out so we’ll take a look at the benefits of this and how it can save you money.
1. Lower startup costs
Perhaps the biggest benefit of renting equipment, whether it’s a fridge for the office kitchen or desktop computer, is that you can save on startup costs. If you’re starting a new business you may not have a huge amount of money to play around with for new equipment. Renting in some cases can cut your start up costs in half and frees up your capital for more profitable uses.
2. Keep up to date
Owning equipment on a tight budget can mean buying models or products that aren’t the latest version. Renting is a great way to always have the latest and greatest technology.
When renting you know you’ll always be given the most up-to-date model, and it’s easier to upgrade if you need to. Renting also factors in repairs, maintenance and replacement as part of your contract so you can save money there.
3. Keep track of accounting
It can be a lot easier to pay a small fixed monthly cost than taking out a loan with high interest for a large item that you may not have ready cash to pay back when it falls due. Equipment rental also qualifies as a deductible business expense so you can save money on tax payments.
4. Right equipment for the job
Computers that are five years old aren’t going to help you keep up with your customer demands. And you don’t want to have to be constantly updating programmes to keep up with technology. By renting quality equipment you’ll avoid the probability of losing business to a competitor who has a faster and better computer.
5. Rent what you need
With a short term rental contract, you’re not locked into the same commitment as you are when you purchase outright. So, if further down the track you decide that you don’t need a particular piece of equipment you’re not out of pocket, or desperately trying to sell it second hand on Gumtree for a much lower price.