Don’t get us wrong; if you’re the owner of a warehouse and you plan on using material handling equipment like forklifts constantly, then we always recommend you spend the higher upfront cost to own that piece of equipment rather than rent it. However, not everyone can benefit from owning their equipment and there are several reasons to rent instead of buy.
To put it simply, your choice as to whether you rent or buy is all based on your circumstances. We’re happy to discuss a strategy with you based on your personal needs, and can let you know what makes the most sense. However, if you think that renting is a great idea, or you’re on the fence, let us convince you further.
Provides Freedom & Flexibility with Your Revenue
When you rent a piece of equipment, you give your business a larger chunk of your available credit for other things that, if you’re a new business, might be better at driving revenue. Sometimes the prospect of renting makes more sense if you need the freedom and flexibility to earn a higher ROI on your revenue rather than sinking it into high upfront equipment costs.
Upfront Cost is Lower
As we just mentioned, rented equipment brings with it a lower point of entry. Sometimes you simply don’t have the funds to outright buy your equipment, and that’s okay. Renting equipment serves the same purpose, and when the money really starts to roll in, you always have the option to start investing in equipment ownership.
Potential Tax Benefits
We are no tax experts, but in certain jurisdictions, a rented piece of equipment can be considered an “operational expense” and is thus able to be deducted from your taxable revenue. Typically, equipment that you’ve purchased is considered a “capital expense” and carries with it limited tax benefit. Of course, consult your tax person before you jump to any conclusions.
Rental Equipment is Scalable in Both Directions
Whether you’re a warehouse or facility that sees seasonal fluctuations in demand, or you simply aren’t sure of your future, rental equipment is a temporary expense that you can even ramp up or down as needs change. When you buy material handling equipment, you better have a use for it to justify the expense. With a rental, the stakes are much lower.
Keep Up-to-Date on Technology
Rented equipment will be sent to your facility in good repair, and will typically be a recent model. When you buy a piece of equipment, it immediately begins to depreciate. Worse yet, you’re on the hook for any maintenance or repairs. When you rent, that kind of stuff is taken care of for you.
Simpler Transportation Logistics
If you have multiple locations, then moving material handling equipment to and from locations as needs arise can be a logistical headache. These types of vehicles are both bulky and heavy. However, when you rent, we send the vehicle to where it needs to go. It couldn’t be any simpler.
Are You Ready to be a Renter?
If we’ve convinced you that renting your material handling equipment is both viable and valuable, then we’ve done our job. Yet, we’ve only revealed the truth; renting is convenient, and in some cases, can even save you money. What’s not to love?