Why Rent?
Renting is often used as an alternative to buying, in this way, you avoid incurring the initial investment.
Renting allows you to evaluate the performance of your business, before eventually deciding to buy new equipment. In this way, you will only commit the necessary economic resources when you are really sure that the purchase is the most convenient solution for your company.
By paying rental fees, your company can avoid committing capital to the purchase of lifting equipment, and decide to allocate its resources to other activities. Renting allows you to know right away how much it costs to rent for a certain period of time: in this way you can estimate the necessary budget with the utmost precision.
In addition, it is a good solution in cases of machine downtime of owned equipment, when a quick replacement is needed in order not to lose productivity. If you buy, you have to wait for the time needed for production. If you rent, the waiting time is zero: you will receive the machine quickly.
In summary, renting is worthwhile:
- In the presence of peaks in work
- For specific orders/projects
- For business development projects
- When you prefer a fixed monthly cost to a capital commitment
When to Buy
If your company needs lifting equipment, you can decide to invest the necessary capital for the purchase. When evaluating this choice, you must consider that once purchased it gradually loses value. The purchase of equipment proves, however, to be the best solution if your company’s policy is to have its own equipment and to make it appear in the balance sheet.
In summary, pros and cons of buying:
- + You own the equipment and can use it as you wish
- + Equipment is a resource on the balance sheet
- – You commit capital
- – The equipment loses value
- – If you no longer need it, you must sell or scrap the equipment