rental equipment

MINIMUM EQUIPMENT INVENTORY: Equipment ownership can be very expensive, especially when that equipment is idle, as owned equipment often is. By combining ownership of basic equipment with rental equipment as needed, idle time and cost is minimized.
RIGHT EQUIPMENT FOR THE JOB: Ownership of equipment can add two hidden but very real costs to your job: 1) inefficiency due to the use of the wrong size or type of equipment, and 2) additional hidden costs of maintenance and repair incurred by owning your own equipment. Rental equipment ensures the right equipment for the job.
WAREHOUSING: Warehousing sites are seldom needed for rental equipment. Some contractors actually operate successful construction businesses with little more equipment overhead than the cost of a telephone by having rental companies serve as their warehouses.
MAINTENANCE: Equipment rented includes full maintenance. You need no repair shop, no spare parts inventory, no mechanics, no added maintenance payroll or maintenance record keeping.
PERSONAL PROPERTY TAXES/LICENSES: There are no personal property taxes or license costs for the user of rented equipment. These are substantial costs that must be added to the costs of owning rather than renting.
CONSERVATION OF CAPITAL: Renting construction equipment rather than owning frees capital for other, potentially more profitable use.
DISPOSAL COSTS: Preparing used, obsolete equipment for resale, advertising and selling time are factors of ownership that do not occur in renting.
BREAKDOWNS: Virtually all equipment is subject to occasional breakdowns. However, when rented equipment breaks down idle time is minimized through replacement by the rental company and repair costs are eliminated.
EQUIPMENT OBSOLESCENCE: Ownership of equipment involves the risk of rising wage costs and slower job completion time due to owning worn, obsolete models when new, better, faster models are available from our rental company.
COST CONTROL: Knowing the true cost of owned equipment is difficult. Rented equipment offers you just one accountable cost figure, the rental invoice cost.
IINVENTORY CONTROL: The presence of continuous billing on rented equipment establishes personal accountability. Inventory loss due to pilferage is minimized.
INCREASE IN BORROWING CAPACITY: Contractors who rent instead of purchase find borrowing easier with better ratio of assets to liabilities since equipment does not appear as a liability on the balance sheet. The normal line of bank credit is not disturbed, a most important assets in securing bonds for construction work