It might not always be advantageous for businesses to own their equipment. There are several reasons why you might want to consider leasing for your company. As a business owner in a competitive industry, you need to maximize your margins and grab every advantage you can get. Renting may be an excellent way to save money and increase profits.
You should be able to come up with a reasonably accurate estimate of the cost of renting long-term versus buying. A lot of equipment is prohibitively expensive for small business owners, and renting is the best way to squeeze value out of their bottom line. You might only need to rent equipment for a short amount of time. Even if you know that a particular procedure has to be done yearly or monthly, renting equipment can still be more cost effective than purchasing it outright. Something like a filter press rental can save you money in the short term. Unless the math checks out, do not invest in large equipment, even if you use it regularly.
Renting can also defray the costs of maintenance. You can get accurate estimates of rental fees, but when a machine you own experiences a catastrophic failure, that burden is on your business. The more complicated your machinery is, the more liability you take on as a business owner.
Leasing your equipment can also look more attractive to lenders from who you need to borrow. High-risk assets and debt from capital equipment can make banks and investors less likely to fund your enterprise.
If you own a business that deals in expensive equipment or machinery, renting might be the best strategy. It can save you a lot of money up-front, and you don’t have to worry about maintenance or liability. Consider leasing before taking on a tremendous amount of debt.