Tool Hire: Use and return for half of the price
If you are planning to acquire some equipment to use in your business, or for any other reason, you have two options: buy or hire. Each of the two options can be more appropriate in one situation and not the other. The most suitable option may depend on various factors such as:
• The nature of your business and whether you need different equipment as time varies
• How often you will use the tools
• What your budget is
• Whether financing is an option
• Whether you will comfortably handle maintenance
If you won’t use the equipment so frequently, it makes more sense to hire, rather than buy, in which case there are a couple of benefits as explained below:
1. Leasing is not more expensive
Most business owners believe that leasing equipment is more expensive as there are a couple of costs to meet before the leasing period is over. Even though there is some interest to pay, that does not mean that leasing is more expensive than having to pay a huge amount of money upfront.
There are some reasons such as tax, cash flow, and several other reasons associated with the cost of ownership, that would make you want to hire as opposed to buying equipment. Besides, you get better deals for your money when you lease equipment. The truth is that leasing is more flexible than buying, and that flexibility is what makes leasing less expensive over time.
2. Get the latest and greatest
Most companies that rent out their equipment always ensure that they adopt new technology to keep their business more competitive. What that means is that you have the option to use the latest and most effective equipment whenever needed. That saves you a lot of trouble as you won’t have to keep on replacing your old pieces of equipment just to make sure that your business remains productive.
3. Greater convenience, more work hours
If you use complicated tools at work, you have a responsibility to ensure that everything is working just fine. Quite a lot of time and money will have to be spent on maintenance once in a while. Besides, you can’t use a machine that is undergoing maintenance. Such interruptions can cost a lot of work hours hence lowering the productivity of your business.
4. Save on tax
Different circumstances have a different impact on an individual business’s tax return. All the same, you could save a lot on tax costs by hiring, since project expenses often have some tax-deduction benefits due to the nature of some kinds of businesses.
5. Have a sharper competitive edge
What’s the point of bemoaning the fact that it’s almost impossible to compete against companies with nicer, newer, and more effective machines when you use older technology? Renting equipment is one of the best ways to ensure that you have a better competitive edge, as you will enjoy access to the newest and most effective equipment. You can rest assured that you will serve your clients better and earn yourself a wider customer base.
Tool hire is the way to go, as you will enjoy a lot of flexibility and better productivity in the long run. You must, however, do your research well to ensure that you hire your tools of work from reliable companies that will deliver you the best. You should also scrutinise the leasing agreement to ensure that you are comfortable with the company’s terms of service.
We hope that our blog has been helpful and explained why tool hire is the way forward. If you have any questions, please don’t hesitate to get in touch on 020 8427 6604 or alternatively head over to our contact page to fill in our online enquiry form.