5 Advantages of Renting Construction Equipment
Construction projects cannot be successful without the correct machines and equipment. This is one of the largest investments your business can make, but it is necessary if you plan on growing and expanding your company. There are many advantages to renting construction equipment when you don’t have the capital to purchase the machines you need.
Try the Latest & Greatest Machines
When you own the construction equipment, you are limited to your fleet. Your machines are likely not the newest editions on the market. If you rent construction equipment, you will receive access to the latest and greatest technology—you can utilize the best equipment out there without paying an arm and a leg to own the machine. You could always rent equipment on top of the ones you already own, but that’s an unnecessary expense.
Professional Maintenance & Service
Working in construction means you’ve probably experienced equipment failure, which is never fun because it can halt production and slow the crew’s progress. However, when you rent the machines through a professional service, the equipment is guaranteed to be serviced properly. Therefore, fewer equipment failures and mishaps will occur with the machine on your work site. If something does prevent the machine from working, the rental company will cover the maintenance for you.
Save Money During Tax Time
Do you know what the difference would be on your taxes the following year when you rent or purchase construction equipment? When you buy a machine, it will be depreciated on your taxes over its lifespan. As for rentals, it’s considered a deductible expense. Renting your machines is better because it’s financially flexible.
Allocate Business Expenses Elsewhere
You’ll evidently save a lot of money by renting the equipment versus buying it. While owning the machines is great, you might not need them for every construction project. By renting your equipment, you can allocate the expenses you would have spent on purchasing the equipment toward other assets of your business. For example, the money you would have spent buying a backhoe can now go toward updating PPE for employees or investing in a new project planning software.
Minimize Start Up Costs
One of the best advantages of renting construction equipment is minimizing your business’s start-up costs. If you don’t have the immediate funding to build your own fleet of machines, renting is always a great option. You can focus on the more essential aspects of your construction business without worrying about having enough money to purchase all the necessary equipment. After profiting from various jobs, you can build your fleet.
Take a look at your budget before deciding to rent or buy equipment. Weigh the pros and cons of this scenario with your business to see if you could benefit from this strategy.
Originally Published on https://www.breakfastleadership.com/
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