Is it better to rent or buy?
Equipment costs can make a large dent in the budget of a small business. So, is it better to rent or buy what you need to operate?
Given the circumstances of every business differ, there’s no simple answer unfortunately. In this blog we examine the benefits of renting equipment.
- Get up-to-date technology. Technological advances are being made with increasing pace these days. Renting gives the flexibility to update outmoded equipment as the project requires. Meaning your team benefits from the most modern and advanced work processes available.
- Improve your balance sheet. Rental costs are considered operating expenses (Opex) and are generally immediately deductible as a business expense. Purchases of equipment on the other hand are considered capital expenses (Capex). With Capex a company can only write off a percentage of the cost per year, based on a depreciation schedule of assets.
- Pursue new opportunities. Some projects require specialised equipment. AS you branch out into new business offerings, buying equipment may not be economically viable. On the other hand, renting can let you expand your project horizons while staying profitable.
- Avoid maintenance costs. When you rent equipment from 4D Global we take care of all the equipment maintenance and updates, meaning you get the most value from your rental.
- Gain specialist skills. Renting allows you to make further savings by not having to hire or train your own in-house specialists. Our staff have extensive knowledge and will guide you to get the best out of your equipment.
- Reduce storage costs. Specialist equipment can only spend so much time idle on the job. All other times it needs to be securely stored. Construction equipment can only take so much idle time outside. Storage facilities to keep bigger pieces of equipment safely tucked away when they are out of use can be a major capital expense.
- Cut opportunity costs. Buying expensive, equipment can tie up capital, meaning it is no longer available for other projects. That can cost you opportunities you would have liked to pursue. You can keep your options open by renting instead of buying.
With the 4D Global rental fleet you can choose the best equipment for your specific project with our expertise to guide you. Our rental-based solutions cover all GIS and GNSS requirements for detailed data activities in the field and office.
Get in touch via phone 03 9466 5255 or email firstname.lastname@example.org to discuss your project needs.