In any business, there are decisions that can significantly improve or worsen the operations and financial condition of the enterprise in the long run. Especially when it comes to acquiring or renting large equipment or additional facilities, this entails wise and meticulous planning. There are certain pros and cons that have to be considered which can be based on the budget and the years of existence of the business.
Purchasing new plant, equipment and machinery may be considered as additional assets for your firm, but today it is more advisable to hire such items instead of finding the capital for new ones. There are companies that provide plant hire in Preston that can help save your business from unnecessary investment and costs if your project is in the area.
Leasing plant and equipment can have immense benefits for your business and some of these are as follows:
- Forgo one time investment on equipment acquisition. Large equipment generally cost a huge sum of money. If you opt to hire an item, you will just pay the rental fee on a monthly or yearly basis depending on the length of time you will use the equipment. Also, you can use the money you would have used for acquisition on other projects that will add value to your business.
- Avoid costs associated with buying and maintaining new equipment. Preventative maintenance costs, overhaul costs, emergency repairs and other expenses can be avoided. These costs are shouldered by the lessor, so you can be worry free whenever unfortunate incidents occur. They also make sure that repairs and replacement parts are readily available in case of equipment break down.
- Assurance that the equipment you hire is updated with the latest technology. Because of aggressive competition among plant hire companies, they exert tremendous effort in upgrading and maintaining their product range.
- Save on taxes. Rental expenses are deducted outright, so you can report it as business expense for the period, hence saving on taxes. This is unlike purchasing equipment, where the total amount is recognised as an asset and depreciation is carried out over the lifetime of the equipment.
- Save on storage costs and space. Especially when you are working on a specialised project, you can return the equipment the moment that the project is completed. You don’t have to rent a space or warehouse to store the equipment. Also, in the future, you don’t have to worry about disposing of the equipment once it becomes obsolete or you don’t need it for future projects.
Aside from these benefits, you can always rely on equipment rental companies to stock a vast variety of options that you can take advantage of for various projects, big or small that will help your business be more successful.