Renting: a profitable equipment-acquisition option
If you've never rented equipment to take on additional jobs, tackle new construction challenges, or to supplement your equipment fleet, you're probably missing profitable growth opportunities.
Renting equipment, rather than buying it, can increase your cash flow, cut equipment costs and free capital without increasing your debt ratio. The choice to rent depends on your business circumstances, the length of time or the number of times you will need the equipment.
The rental contract
The advantages of renting
Since losing the Investment Tax Credit in 1986, contractors in ever increasing numbers look at renting as more than simply a way to occasionally supplement their rental fleets. Today, many contractors figure equipment rental into their overall business planning process. Behind the rental contract is this concept: if the use of equipment is temporary or limited and the purchase price is high, then renting is the profitable solution.
The American Rental Association estimates that approximately 80 percent of the 18,000 rental operations in the United States and Canada rent at least some contractor equipment.
Source: Rental HQ


