Sunday, 26 May 2019

Industrial Equipment: Buy, Rent or Lease

Like highly skilled workers, a good piece of industrial equipment is an essential part of any business or factory to flourish. However, most industrial equipment, especially large, heavy ones like pumping machineries and earth moving apparatuses tend to be very expensive and tedious to maintain. Depending on the kind of industry you are in, your company may require a specific type of machinery to get the job done. For example, the agricultural trade uses a variety of large, heavy machinery like tractors, rock pickers, round balers, cotton harvesters, and backhoe loaders. The same goes for the relatively new biotechnology and research design and development industry, where familiar industrial equipment such as freezers, ovens, and incubators play a role in getting the job done.

Fortunately, buying new equipment is not the only option. There are other available ways to obtain the necessary machinery while providing minimum outlay. It goes without saying that such method is desirable to optimize the company finances. Thus, many companies are able to stretch their budget on buying or renting used industrial equipment.

Saving and Profiting

Start-up companies or those with limited investments have most benefited from renting or buying used industrial equipment as opposed to purchasing brand new. From items such as shredders, dryers, and ovens, to forklifts and cranes, there are many enterprises willing to auction off or sell their used industrial equipment. Others provide leasing solutions, an option that is equally advantageous.

There are many benefits to buying or renting used industrial equipment. The following is a list of those advantages that you may want to consider for your company:

• Buying or leasing reduces capital investments while enhancing finances. Used industrial equipment are sold at discount rates as high as 70% off, far cheaper than new ones. Likewise, renting only requires very minimal expenditure. This frees up the company’s finances for other expenses that may be used for further improvement such as in areas of production, sales, marketing or expansion.

• Buying or renting minimizes loans. As mentioned above, the investment required to purchase or rent used industrial equipment is not as pricey as purchasing brand new. This allows the company to only make small loans in banks or financial institutions, or avoid borrowing altogether.

• Used equipment has lower maintenance costs and its performance has been tried and tested in the field. Likewise, rented equipment assures quality performance at zero maintenance cost since the leasing company takes care of it.

• Many leasing companies offer competitive options and affordable payment plans. A lease company can offer time-specific leases where equipment is returned after an agreed period of time. There are also options for equipment rental in addition to a previous one, or upgrade to a more efficient model. Some also allow buy out of the equipment with significant savings. In addition, leasing firms offer different types of payment packages or personalized plans suitable for your company’s finances.

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