When to Buy, Lease, or Rent Heavy Equipment
Knowing when to buy, lease, or rent heavy equipment will help you determine which option works best for your particular business needs. At Valiant Financial, we want to make it easier for you to get the heavy equipment you need for your worksite. That is why we offer a selection of financing options that are perfect for businesses of all shapes and sizes.
Renting Heavy Equipment
Since most rental companies offer daily, weekly, and monthly rates, renting is a great option for businesses that only need certain types of heavy equipment for short periods of time. Renting is also a great option for companies that do not want to have to worry about taking care of any of the maintenance or upkeep associated with the equipment.
One of the biggest pitfalls of renting is that rental rates tend to be higher than lease payments. This means that renting only tends to be a cost-effective solution for businesses that only plan to use the equipment for a specific period of time. Renting is also dependant on availability, so you will need to plan ahead to ensure you get the equipment you need.
Buying Heavy Equipment
While buying heavy equipment means that you will have complete control over when and how the equipment is used, purchasing equipment can also come with a hefty price tag that will need to be paid upfront. Buying equipment outright can be a great option for businesses that use the same heavy equipment on a regular basis and have enough cash flow to purchase the equipment without depleting their funds. When buying equipment, it is also important to take into consideration the costs of maintenance, repairs, storage, and transporting the equipment to the jobsite.
Leasing Heavy Equipment
While leasing does tend to have higher interest rates and higher insurance rates when compared to purchasing equipment outright, leasing makes it easier for companies to purchase the latest and greatest industry equipment without any large upfront costs. By allowing you to pay smaller monthly payments, leasing can help free up capital that can be used for other parts of the company rather than on purchasing new equipment. It is also important to note that, unlike renting, once the lease is paid off, the company will own the equipment free and clear.
If you would like to learn more about when to buy, lease, or rent heavy equipment, or if you are interested in our financial services, please contact Valiant Financial at 1-833-635-3273.