​Business Talk: Renting vs. Owning Equipment

When it comes to owning a business one of the hardest decisions one has to make is whether or not one is to purchase equipment or to rent it. Both options provide both pros and cons, from immediately downright purchasing the necessary tools to renting them on an as-need basis.

Best Access Doors shares the pros and cons of renting equipment from a business perspective.

Pro – Owning the equipment means one has access to equipment and tools anytime and anywhere. Sometimes a contractor may get a request for a last minute job; however, if they don’t have the necessary tools to do the job they may have to turn it down. With owning the equipment, a contractor can stay open to any new potential business and clients.

Con – When renting, it often depends on who and where one rent from because there could be limited availability on the necessary needed tools and equipment. It’s hard to know what tools for what jobs will be needed. Will it be a plough? A drill? Maybe you’ll need more than one set - there are many restrictions that come with renting equipment that often on the company renting them out.

Pro – When renting, you only pay for when you need the tools and equipment, which means that if your jobs don’t require constant access and use of heavy-duty machinery, you may be saving your company hundreds of thousands of dollars. Paying to only use the equipment when necessary could make it worth it in the end.

Con – Owning means paying everything upfront which can be expensive initially. If a contractor is starting off, doesn’t have many clients or jobs but knows that having certain tools and equipment will help the business it can be hard to that one has to invest thousands upon thousands of dollars before money and profit are made. Paying upfront can also result in a financial strain on the company if little no jobs have been taken on.

Pro – Owning tools becomes an investment in one’s business and commitment to ensuring they are competitive in comparison to their competitors. Not only is it an investment in one's company but it builds equity which is always good for a company. When clients look at companies to do jobs, they more often don’t want to have to wait for when they’ll get that plough or tractor - they want to know that the job will get done as soon as possible.

Con – Renting equipment does not always guarantee what you get will be in working order due to the fact they could be rented multiple times before they go for maintenance and checkups. While many companies ensure their machinery is in working order - it can be difficult if halfway through doing something the machine dies. If the rental company does not have replacements this could mean the job has to be postponed or that the contractor loses it.

Pro – Owning ones own equipment means Increasing productivity and depending on the tool, a company could become known for their specific services and or tools available. Renting means waiting, owning means you can dictate and organize the jobs based on tool need but more importantly, if your company becomes known for a specific tool due to it being a niche - a contractors company becomes specialized and clients go-to for specific jobs.

Con – When owning machinery, it is up to the owner to ensure the machinery are licensed and that they trained and knowledgeable staff who can operate the machinery. This can be costly for a company starting off but more importantly, it can be hard to find someone who is trained to work on certain machinery. It is an investment that a company must decide on.

Pro - Renting machinery means that contractors and companies don’t have to worry about insurance, documents as well as the space to store the equipment. An up and coming contractor may not have space to house such equipment and machinery; therefore, renting can be a cheaper and more viable option. With renting the only thing that a contractor has to worry about when it comes to the paperwork is ensuring that the fees are paid and waivers are signed.

Whether you are starting off a new contracting business or looking for ways to save and make money visit or blog page.