With an economy still surrounded by uncertainty, small businesses may choose leasing heavy equipment a superior option to purchasing it.
Odds are, if you own a small business or are thinking about starting one, you are on a tight budget and want to minimize risk. Thus, purchasing expensive heavy equipment might be worth avoiding, especially given its depreciating value over time. In fact, nearly 30,000 businesses in the U.S. lease heavy equipment yearly. Leasing allows small business to avoid the substantial costs of purchasing equipment.
Here are some reasons why leasing heavy equipment can be an attractive option:
Leasing is the way to go if your equipment needs are seasonal or short-term. Many companies that lease heavy equipment offer leases that can be tailored to the circumstances of your business. Some might offer special deals to account for seasonal business fluctuations.
2. Small Budget
You only have a limited quantity of money, yet you need machinery to keep your small business in operation. Instead of settling for the cheaper models, save your money and lease superior equipment that might otherwise be out of reach financially. The option of leasing heavy equipment, instead of purchasing it, could provide increased productivity.
3. Asset Preservation
Instead of spending a large sum of capital for machinery that may or may not eventually return the value, leasing the equipment allows you to maintain your liquid assets for future needs. This is important during times when money is tight. The better solution may indeed be to maintain a constant cash flow, instead of making a too large investment. It could be wise to hold onto capital for a future investment other than machinery.
4. Risk Reduction
By purchasing new equipment, you run the risks of it breaking, malfunctioning, or becoming obsolete. In the age of exponential technological growth, new equipment might surpass your operation’s capabilities. Furthermore, you might find that your needs for the equipment diminish as new, superior options appear. As part of your contract, equipment-leasing companies offer updates and repairs to keep your equipment up and running.