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Here Are 12 Great Reasons To "Think Rental!"
1. Minimum Inventory-Ownership can be very expensive when equipment is idle. Combining ownership of basic equipment with rental equipment as needed will minimize idle time.
2. Right Equipment for the Job-Eliminate the hidden costs of inefficiency due to use of wrong size or type of equipment and the maintenance and repair incurred. Rental equipment ensures the right equipment for the job.
3. Warehousing-Use of rental equipment eliminates the need for large storage areas/buildings. This overhead in your cost of doing business is minimized.
4. Breakdowns-Virually all equipment is subject to occasional breakdowns. However, when rented equipment breaks down, idle time is minimized through replacement by the rental company and repair costs are eliminated.
5. Maintenance-Rented equipment includes full maintenance, no repair shop, no spare parts inventory, no mechanics, no added maintenance payroll or maintenance recordkeeping.
6. Equipment Obsolescence-Ownership of equipment involves the risk of rising wage costs and slower job completion time due to owning worn, obsolete models when new, better, faster models are available from our rental company.
7. Disposal Costs-Preparing used, obsolete equipment for resale, advertising and selling time are factors of ownership that do not occur in renting.
8. Cost Control-Knowing the true costs of owned equipment is difficult. Rented equipment offers you just one accountable cost figure, the rental invoice cost.
9. Inventory Control-The presence of continuous billing on rented equipment establishes personal accountability. Inventory loss due to pilferage is minimized.
10. Taxes/Licenses-Personal property taxes and license costs are eliminated on rented equipment.
11. Conservation of Capitol-Renting construction equipment frees your capitol for other potentially more profitable uses.
12. Increase in Borrowing Capacity-Contractors who rent instead of purchase find borrowing easier with better ratio of assets to liabilities since equipment does not appear as a liability on the balance sheet. The normal line of bank credit is not disturbed, a most important asset in securing bonds for construction work.