Invest in capital equipment or leverage your flexibility?
There are many factors that will influence a final decision – and it’s well worth taking the time to weigh up your current and future business needs before making a commitment either way. As business needs change a hire can always be changed to a machine that suits your emerging requirements.
For most business owners, the key factor in the decision to hire or buy their capital equipment is cost.
The obvious benefit of hiring is being able to add new assets to your fleet without making a large capital outlay.
It also gives you access to new release equipment that has been pre-checked for quality and reliability by the hire company.
Unlike a cash or financed purchase, a hire agreement doesn’t demand a hefty deposit and, in the case of longer-term hires, the monthly payments will be spread over a longer period than your average loan, which generally means they will be lower.
Hiring can also be a good option for businesses needing to supplement their fleet during busy work periods or for those needing to upgrade every few years to keep up with technology.
However if your business can operate quite successfully over the long-term with the same equipment, then an outright purchase may be a better option.
Buying equipment outright can offer a business immediate ownership and related tax deductions but while it may seem straightforward in terms of allowing for the ticket price in your budget, there are some associated costs that must also be factored into your sums.
Possibly the most important of these will be ongoing insurance, maintenance and storage costs, all of which could add a significant amount to your final outlay especially in cases where storage facilities need to be built onsite or rented.
Buying can be a valuable move if your business has many projects on the go and in the pipeline. A purchased machine is yours to keep and in terms of availability, you can use it whenever and wherever you like.
This compares to hiring, which is sometimes subject to availability – and if a hire company is low on stock at a critical time in your operations, the impacts could be devastating to your bottom line.
But while Australia’s economic climate remains shaky and an increasing number of businesses feel the financial pinch, hiring is fast becoming the preferred option for its variable terms and low-capital commitment.
Hiring is also maintenance-free for the customer, meaning that if your equipment breaks down during the term of your hire agreement, the hire company will send someone to repair it at their expense.
In the event that a significant repair results in extended downtime, the hire company will usually replace your machine allowing your operations to continue without disruption.
All of this means you can spend more time focusing on your operation instead of on machinery and upkeep.
Of course, not all hire companies are the same and one way of reducing the risk of unplanned repairs and downtime is to be selective about your choice of hire provider before signing on the dotted line.
When you work with the reputable and experienced team at LiftRite Hire & Sales, you can be assured you’ll be paying competitive rates for quality equipment that has been thoroughly serviced and maintained before leaving our premises.
You can be sure that when you hire from LiftRite, you’ll get peace of mind for the life of your hire agreement.