If you own your own small business, you know how precious the money is that you have to spend on your company. Because of this, most business owners think long and hard about every purchasing decision that they make. However, what some small business owners don’t realize is that renting your business equipment can often be a much better financial move than buying something out-right.
To help you know if this will be the right option for you, here are three reasons to rent business equipment rather than buy it.
Lower Initial Expenses
Depending on the type of business you’re running, the equipment you need in order to get the job done could be extremely expensive. Not only this, but it could also be hard to come by or service on your own. But if you choose to rent specialized equipment rather than buy it, you won’t have to worry about such a high initial expense.
According to Nolo.com, a lot of the business equipment that people end up renting requires little to no down payment from the business, which means you can start using the equipment you need for just a monthly payment. And when you don’t have a huge chunk of money to drop on buying the equipment in the first place, this could be a great option for you and your business.
Never Use Obsolete Equipment
Another reason why you might choose to rent your business equipment as opposed to buying it is so that you don’t have to worry about owning equipment that will soon be updated, upgraded, or obsolete.
By having a short lease on equipment that you don’t own, Peter Alexander, a contributor to Entrepreneur.com, shares that you will never be forced to continue using obsolete equipment simply because you’ve already paid for it. Once your lease is up, you can quickly and easily begin using the most current or up-to-date equipment available without having to sell off any equipment that other businesses won’t be interested in using either.
To Keep Up With Your Business Needs
As was mentioned above, keeping your business equipment leases relatively short is ideal so that you can always have the opportunity to keep you with your current business needs.
For example, Ryan Kernan, a contributor to BusinessKnowHow.com, shares that you should try to keep your business equipment leases to less than five years. By doing this, you’ll give yourself an easier out if the equipment needs of your business change relatively quickly. Otherwise, you might have to pay fees or fines for breaking your lease early. So to avoid this, try to keep your leases short so you can make quick changes if your business needs it.
If you’re worried about getting the equipment you need for your small business, consider using the tips mentioned above to see if renting or leasing might be a better option for you.