As a small construction firm, you likely face some challenges. From securing contracts to keeping your profits high enough to sustain operations, small business owners have many struggles. Renting some of your equipment instead of purchasing it can help you move past these challenges with ease. Here are some benefits rental construction equipment can extend to small business owners like yourself.
Commercial grade construction equipment often comes with a high cost. Depending on the type of equipment you're purchasing, it's not unheard of for the cost of the equipment to reach into the tens of thousands of dollars. When you consider all the equipment you need to operate, the total equipment cost could reach more than one-hundred thousand dollars.
For the new business owner, this amount exceeds the amount of cash they typically have on hand. As a result, they have to rely on loans to cover the cost, which increases their debt load. A high debt load can prevent you from making future credit based purchases and even jeopardize some of your contracts.
Lower Operating Costs
A common factor some business owners overlook is operating costs. When you purchase large construction equipment, the purchase price is only the beginning. To sustain the equipment, you also have to perform regular maintenance and make repairs. If you fail to perform these steps, the equipment won't last very long, and you'll find yourself right back at square one – purchasing new equipment.
If you're struggling to pay back the loan for the equipment, the idea of covering the costs of maintenance will seem overwhelming. When you rely on rental equipment, you don't have to cover the cost of maintenance since the rental company handles all the equipment's needs.
Avoid Additional Equipment-Related Costs
In addition to maintenance, there are other equipment-related costs you can expect to incur when you purchase construction equipment, instead of renting it. First, there is storage. For overly large equipment, you may need to pay for additional storage space and given the size of the space you need, and the security required, this space might not come cheap.
Next, there is transport. To move the equipment from the storage space to the worksite, you will have to invest in a large truck and other equipment that is often costly.
Renting your equipment when you're first starting your business makes sense. Make sure you don't overlook the benefits this option can bring to your new company.