You might be looking to expand your enterprise, or maybe you have an upcoming contract that requires you to acquire heavy machinery. Companies and individuals have the option of either buying or renting heavy equipment. In most cases, renting out has been a preference of many. What are you to consider when renting out heavy equipment?
Equipment Usage And Availability
Getting a reliable heavy equipment rental company with a low downtime is essential. Low downtime means that your chances of finding the machine unavailable are low. Sometimes, projects that require heavy machinery are unpredictable. They are subject to external factors such as inconclusive licensing or poor weather conditions. Therefore, you need to get a rental company whose machine unavailability is not too high to cater for such emergencies. The company should be flexible to avail the equipment as per the contract. Consider if the intended rental firm has all or most of the equipment you require for the job and if its usage is flexible enough depending on the nature of your job.
Current Financial Status And Future Projections
The company’s current financial status might be good enough for you to buy the machine instead of renting. However, you need to align the current financial status with the future projections of the company. What jobs do you intend to do a few years from now? If you are likely to expand your business and use more than one machine beyond your present job description because of the extension, it will be reasonable to rent. The maintenance cost if you bought the machinery will also be dependent on the present financial position of the company. You may opt to buy but then run out of funds to maintain it. In such a case, renting would be the better option compared to buying. Technology is dynamic. Your current equipment needs may not align with your future projections. You may need to update your machinery at a future date meaning you need to set aside capital for that need. Most rental companies have up-to-date equipment so if your company will strain to update the machines at a future date then renting is a good preference.
Renting of machinery is suitable for short-term projects. It makes sense if you rent equipment to carry out one task rather than buying it only to have it lying around most of the time because it is not being used. This option means that you need to understand the nature of your job and plan. Estimate the number of times you will likely use the equipment. If the frequency is low, then opt for renting compared to buying. Discuss with the rental company on the flexibility terms just in case there will be any factors slowing down the project to avoid paying a high cost. If you are handling several projects within a short period, then you can hire the multipurpose equipment instead of hiring individual ones for each project. It will save up on the rental cost.