FAQ: What are the financial benefits of renting?
Benefits of Renting Equipment part 3 of 3: Financial Benefits
If your company or project has the capital available to purchase your NDT or RVI equipment, why rent? Although each project and business is different, it’s important to understand the benefits of renting versus purchasing.
- Preserve your capital: With a rental, you can release your capital into other parts of the business where it can be used to generate additional profits.
- Increase your borrowing capacity: The equipment user who rents rather than buys generally finds borrowing easier because he has a better ratio of assets to liabilities, as the equipment does not appear as a liability on the balance sheet
- Reduced disposal costs: It costs money to sell any type of used or obsolete equipment. Preparing (or repairing) the equipment for resale, advertising and selling time are cost factors of ownership that do not occur with rental equipment.
- Reduced inventory costs: The inventory any department needs can be reduced with a reliable source for equipment rentals or leasing options
Read the rest of the series here: