The advantages of re-renting equipment are quite numerous for many different businesses and they range from the obvious benefits that you will have from not having to buy new equipment, to the more subtle benefits which can mean a lot to your bottom line. These include the following:
- The most important benefit is that you will get much lower rental fees than you would if you bought equipment, as well as having the added advantage of being able to take advantage of economies of scale by buying equipment instead of renting it. This means that you can buy more of the same kind of product for the same amount of money, and this will mean that the price you need to pay will be lower as you will also be paying less for it overall.
- You will also get a rental fee that is significantly lower than what you would have to pay if you were buying the item. This means that you can potentially spend less on the purchase of equipment if you do not need it right away. If your business is small enough and you can get the equipment for free then this could be an effective method to reduce your costs, and could even be enough to get you started.
- You also have the advantage of being able to do business with other people’s equipment, so this is a good thing for you as an entrepreneur, as it means you can make good use of items you own as well as those that you do not. For example, you might be able to reuse a washing machine you have to get your company started, or you might find that you need to get some office equipment for a new job that you are taking.
- One main disadvantage of using this technique is that you have to be prepared to pay the difference between what you pay for new equipment and what you would have to pay for it to be taken off your hands. You will not be getting any discounts here, but rather you will be expected to pay a fee that is equal to the difference between what the new equipment cost and what you would have to pay to get it out of your hands.
Renting rather Than Purchasing Equipment
This is why it is best to use this method of renting rather than purchasing for a small business. As long as you are prepared to take on the extra cost of paying for the equipment when you need it, you should not have any problems with the cost of the equipment, and you will be able to manage it well, at least temporarily, as you will only have to pay for the difference between what the equipment would cost and what you would need to pay for it to be taken away.
Advantages of Equipment Re-Rentals
There are also advantages for your small business in terms of the fact that it will allow you to have the option of moving equipment around if you require to, as well as being able to change equipment parts. If you are starting a new business and do not have a large capital supply of it, this is great, and also allows you to make some good use of the spare parts, which could lead to you saving a lot of money if you were to purchase the items.