Running a business can be an expensive endeavour, not least because of the numerous areas in which money must be invested to keep the business going. From hiring staff to paying business energy bills, there are lots of areas to consider.
As such, it is worth thinking about how costs can be brought down in order to save the business some cash and safeguard its ability to operate effectively. Here are some thoughts on the effectiveness of renting equipment against purchasing it outright.
Renting
Those businesses which use equipment on a daily basis will want to know that what they use is of the highest quality, and guaranteed to get the job done. By renting equipment from a trusted supplier, be it test equipment or diggers, they know that they are gaining access to well looked after, professional gear which should be incredibly effective for the job at hand.
Renting usually works out cheaper for those businesses which use equipment infrequently, potentially saving them money in the long run. They also do not have to spend time and money repairing/replacing their own equipment, and can rest assured that renting will have minimal impact on their cash flow.
Buying
The obvious disadvantage of buying equipment outright is the initial expense. This can put many business owners off, especially if the business is small and cash is tight. However, purchasing equipment can, in many cases, be seen as a worthwhile long term investment, and could actually work out cheaper than renting in the long run
There is no time limit as to how long the equipment can be used for, and as long as it is well maintained it should stand the test of time.
Which is Best
For those who can afford it, owning equipment outright is often the best way to go, as it will often come with a warranty when bought new and there are no restrictions in relation to actually using it. It can also be sold on if/when it is no longer needed.
If the equipment really does only need to be used a handful of times, though, it would likely be better to rent it for a short period to keep costs down.
Ultimately, the decision is down to the individual business owner and how much money they have. Either way, it is always well worth shopping around to find the most competitive prices whether renting or buying equipment.
