What Does A Rental Do For You

The Major Rental Benefits Briefly Explained

Rental is fast becoming the finance option of choice for essential business equipment. According to a recent survey, over 80% of all US businesses rent at least some of their equipment; and these businesses range from Fortune 500 companies right down to the corner store. With this been said, it is pretty obvious that the benefits of renting are far reaching.

One of the most important components of placing your essential equipment on rental is that the rental company is in a position to carry some or all of the risks associated with managing the lifecycle of the asset. This leaves you free to concentrate on the real core functions of your business.

When considering equipment rental, the choice of rental partner is critical. Whilst some rental companies act purely as a funnel for sourcing finance, “True Rental” companies offer services that range from procurement, finance, maintenance, insurance, asset management and end of asset disposal. This means that as an SME you can reap the rewards and enjoy the benefits of rental solutions that large corporates enjoy. For example, an established rental service provider would have secured vendor relationships that can be leveraged on to provide a range of asset options at competitive prices.

Some of the major rental benefits are:

Better use of cash: Rental allows you to focus your cash on business enhancement, rather than business infrastructure.

Save Your Line Of Credit: Renting allows you to preserve the available credit from your bank for additional working capital, operations, expansion and acquisitions. When conducting equipment financing through your bank, you exhaust your available credit.

Flexibility: Being flexible in terms of payments, upgrades and the addition of more technology to meet your businesses needs; means that rental allows you the freedom to expand and grow at your own pace.

Off Balance Sheet Financing: Proper structuring of your equipment rental can result in additional benefits which have immense implications on the businesses profitability.