So you’ve decided to enter the construction industry or set up your own workshop and start making and selling steel bench seats, shelf brackets, or uniquely beautiful pieces of jewellery. You probably already know that both of these businesses can be highly profitable if the right choices are made. Deciding whether to rent or buy the equipment you need is one of the most important ones. Read on to find out what the advantages and disadvantages of each option are.
Renting Industrial Equipment
Renting the equipment your business needs in order to operate smoothly is ideal for those business owners who don’t have enough initial capital to buy all the necessary industrial tool supplies outright. By renting some or all the items of heavy equipment you need, you won’t have to pay the full cost of the assets upfront, which means that you won’t use up your cash or take out a large loan. Furthermore, renting gives you the amazing opportunity to use the newest equipment with the latest technology.
Another advantage of renting industrial equipment is the fact that you won’t have to worry about the risk of expensive breakdowns and repairs. If a piece of machinery starts malfunctioning, the dealer will fix it and return it to you or provide you with a different one. According to many experts and experienced business owners, this option is perfect for short-term jobs and one-off projects.
However, renting has a number of disadvantages as well. The cost of renting can add up quickly and it can turn out to be higher than the cost of equipment ownership, especially if you don’t use the equipment during the entire rental period. That’s precisely why you should consider the option of purchasing instead of renting.
Buying Industrial Equipment
Yes, buying the equipment you need to get the job done can be a large one-time financial outlay, but that doesn’t mean that this business decision isn’t a smart one. Unlike renting, purchasing the necessary industrial tool supplies offers immediate ownership and deductions for the interest you paid on money you borrowed to purchase these items.
Moreover, buying and owning industrial equipment is the ideal option for you if your projects tend to be long and similar to one another. For example, almost every construction project requires trucks, cement mixers, (mini) cranes, hoists, and forklifts, so owning these basic items of construction equipment is really convenient. By purchasing industrial equipment, you’ll have access to it 24/7. This means that you can react to unexpected changes in your projects, take on jobs immediately, and complete tasks with less downtime.