When acquiring equipment, you typically have a variety of options for purchasing that fit your financial situation best. Whether you have the capital to purchase outright, need to finance, or are exploring rental options, just about everyone should be able to obtain what they need. However, if you’re able to choose which one best suits you, there is some deliberating to be done. For some, renting is more appropriate based on the volume of their work, for others, the prospect of ownership through financing is much more enticing.Let’s look at the differences of renting vs. financing your equipment. Equity The most prominent appeal of financing is the equity you establish with your payments. Your money is still going to an asset that you will still have ownership of some day. In contrast, with a rental, your money is only going to the renter, and will not be returned to you someday through asset ownership. Additionally, your payments will eventually end with financing, whereas with renting the payments are indefinite, and will never decrease. With no ownership and no end to the payments, it’s easy to see why financing can be so appealing. Availability
When your machine is more specialized or in a higher demand, you may find your renter does not have what you need in stock. This is another case of renting being potentially harmful to your business and your wallet. Availability is the best policy, and renting puts a potential roadblock in the way of that availability being as consistent as possible.
The main benefit pointing toward renting is in the flexibility it provides. No maintenance, no commitments, and the ability to get exactly what you need is valuable, and if that outweighs the monetary benefits, renting may be the right option in that scenario. However, costs may change, and you may see a negative impact from that flexibility.
Financing may seem like a taxing undertaking in contrast to renting, but it carries many great benefits that can’t be ignored if you’re able to do it. Financing has many positives, and if this has you intrigued, feel free to reach out to our great staff to discuss! It’s an accessible form of acquisition, and we pride ourselves on ensuring that every customer gets what they need at the right price.
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