Rental

The rental contracts include the complete maintenance of the equipment.

The user does not need a repair shop, spare parts stock with its heavy management, mechanics or maintenance mechanics or maintenance records.

Without exception, all equipment will occasionally break down. When leased equipment fails, it is replaced or repaired at no cost to the user. For purchased equipment, operating losses, time and repair costs must be taken into account.

The rental contracts include full maintenance of the equipment. The user therefore does not need a repair shop, spare parts stock with its cumbersome management, mechanics or maintenance records. mechanics or maintenance records.

Better cost control is possible with leased equipment. Knowing the exact cost of the equipment one owns is  difficult to determine. Acquisition, repair, maintenance, transportation and installation costs are just some of the variables.

Contractors in particular  often find that they have less inventory loss due to theft when equipment is leased. There is a logical reason for this. The presence of regular billing on rental equipment, or occasional phone calls from your agency to check on your rentals, tends to establish better tracking of equipment over time

Selling any type of used or obsolete equipment costs money. Preparing (or repairing) equipment for resale, advertising, and selling time are costs to the owners that do not exist with rentals.

Regularly the equipment evolves to be faster and of better quality. In an increasingly competitive market, owning your own  production tools carries the risk of being handicapped by equipment that is slower and less efficient than the latest models.

Ownership often imposes another type of inefficiency  through the use of a format or type of equipment that is inappropriate for the job and regulatory changes. The “we’ll make it work” mentality can result in poor production, wasted time, increased costs and, in some cases, the risk of accidents attributable to the company’s manager

Equipment ownership becomes particularly expensive when the equipment is not used 100% of the time. The contractor who combines basic equipment ownership with rental equipment when needed minimizes equipment downtime

Leasing frees up capital for other potentially more profitable uses than borrowing

A company that leases rather than buys generally finds it easier to borrow money because it has a better asset/liability ratio. The leased equipment does not appear as a liability on its balance sheet. This means that the bank credit line is not impacted.