While equipment rentals have been available for quite some time now, several entrepreneurs shy from this practice. Here are a few compelling advantages of renting equipments over purchasing them that might make you reconsider your capital investment plans:
- High-end equipment purchase is a major investment that can eat into the budget allotted for marketing, customer service, and other aspects of handling the business.
- With the continuous development of new technologies, equipments can get obsolete in a short period, causing major losses to the organization.
- Most equipment is highly depreciative assets and hence has a low equity sense.
Hence, renting equipment makes sound economic sense over buying them.