There’s something about being able to buy a new piece of machinery. There’s no denying that. On the one hand you are the owner of a shiny new construction machine that can do all the work for you, and on the other hand, you are assured that the job you need to do will get done according to your wishes. At least, that’s the allure of acquisition. Reality is often very different.
In fact, most construction businesses prefer to rent rather than to own, and for good reasons. Sure, that feeling of owning the machine has its attractions, but smarter heads understand that, in this changing world, it makes a lot more sense to commit only short-term and to complete the project on much favourable financial terms. Have you ever wondered why hiring is the trend? Here’s why it makes better sense to hire equipment rather than buy it outright.
Avoid the investment
An outright purchasing of equipment is a long-term financial commitment that will surely tie down your money for years to come. It’s an investment that has no guarantee of success, especially if the equipment you buy is expensive and your future projects are unsure.
Get the best of the best
When you hire your equipment, you are sure to get quality – you are sure to get what you need in order to get the job done. Technology is changing quickly, and when you hire, you are able to take advantage of the latest technology that is available. Your tools will never be obsolete.
Don’t get bogged down with maintenance
Rental companies, such as plant hire Preston specialists Ruttle, often have included into the contract provisions for maintenance and regular upkeep, as well as storage facilities and other issues you may not have considered before buying. In other words, your equipment is safe, well-kept, and at its best operating potential when you put it to work.
When the project is done, will you still need the same equipment? By hiring, you are assured you have what you need, whenever you need it.
Improving the balance sheets
Because you don’t have a long-term investment, your balance sheet looks much better. This is important if you need extra investments, or if you need credit with lending institutions.
Here’s one more advantage that you may not have heard about – it’s an important one. Hiring costs are considered operational costs and are therefore immediately tax deductable. They are expenses directly resulting from business operations. Purchasing, on the other hand, is not tax deductable – or can only be deducted through a depreciation calculation over a number of years, depending on the expected lifetime of the equipment. When it comes to hiring, the benefits are endless. Be wise and stay safe.
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