In today’s highly competitive business environment, equipment rental should be perceived as more of a financial asset and not an expensive overhead. There are various benefits to be derived from equipment rental that, in the long run, can save you more money and increase competitiveness, proving to be just as much of an investment as purchasing equipment – if not more so. Let’s take a look how your business can make smarter equipment investment decisions though rental solutions.
You get more financial control and it frees up general cash flow.
Large sums of CAPEX spent on once-off purchases of equipment can take huge chunks out of a company’s budget, leaving little for other pertinent investments. With a sometimes restricted budget that needs to be distributed across the business, lease agreements can offer solutions to the challenge of balancing finances while providing the business with the tools it needs to function.
Another purchasing obstacle for businesses with a small or limited budget is getting a financial loan. It can be an intensive and time consuming process, not to mention the disappointment of having your application rejected. However, equipment rental only requires a credit check which will also indicate what your maximum rental amount is.
Aside from avoiding a single big financial expense, you spread out the payments into more manageable portions, giving you greater financial control. Equipment rental also assists in keeping track of your monthly expenses as the terms set out in your service level agreement ensures that you set monthly amount payable helping you to budget accurately, avoiding any unexpected or fluctuating expenses. Opting to rent also reduces your income tax obligations as rentals are deductible as business expenses with VAT also spread out over the same period as the rental agreement.
Maximise your resources and get added services with equipment rental.
As soon as the sale has been made, the equipment is your responsibility. Aside from the standard warrantee, you are left to pay for any additional maintenance costs and repairs. Most rental agreements state that the service provider is responsible for the upkeep of the equipment.
Equipment rental providers offer additional resources and services you would otherwise not have had access to. Should something go wrong, the rental provider is usually in a position to offer temporary equipment while repairs are done – minimising downtime and subsequent financial losses.
Renting equipment also allows for greater scalability than purchasing. Say for instance you only require a piece of equipment for a limited period of time; you have the control to easily extend the rental agreement should a project continue longer than expected. When trying to resell a piece of equipment, even though it was only used for a short period of time, you are likely to lose a large percentage of its value. Not to mention waiting for a buyer, which means you pay for something you are no longer using.
Stay competitive and let your equipment grow with you.
Staying on trend can be a heavy financial burden even more so if a business is reliant on the newest technology to keep on expanding. But as any forward thinking businessman will know that keeping up with the latest industry developments is crucial for the survival of any business – not matter what the cost.
When purchasing equipment you run the risk of it quickly becoming outdated or even redundant, forcing you to resell and most likely at a massive loss. The scalability of rental agreements also enables you to get bigger and better equipment as your business expands. Also, you get to try out the newest technology without having to make a big financial commitment to do so.
Make sure you stay competitive with our range of state-of-the-art Sharp office equipment. Contact us to find out our range of flexible rental finance options.
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