Do you struggle with the cost of renting a piece of equipment? Equipment lending could be an affordable alternative. In addition to giving you access to needed tools and machinery, it can lower your cost peruse. It can also help reduce storage space requirements and logistical headaches.
Want to know more? Keep reading for tips on taking advantage of equipment lending.
What’s On Offer?
The range of equipment available to borrow is broad and covers a number of different sectors. Whether you need to buy or rent, there will be something to suit your needs.
The length of the loan can be as short as overnight or as long as 12 months, depending on what you need. Most equipment is available for 7 days with some being available for 3 or 6 months at a time.
Identify the Need
Once you’ve identified the need for equipment, it’s time to think about the cost. Equipment costs vary widely depending on what you need, but here are some general guidelines:
- Rentals are usually cheaper than buying new ones. But, renting can also be more expensive if you aren’t sure how long you’ll need an item or if it’s more convenient to buy.
- Think about how much use your business will get out of an item before making a purchase decision. If there are other uses in the future that require different types of equipment, then buying might make sense since it will be less expensive in the long run compared to renting several different items at once.
- Be wary of hidden fees such as those associated with late rentals; these could add up quickly and ultimately negate any potential savings from renting instead of buying outright (or vice versa). Also, ask whether there are additional costs associated with returning items late—this is often overlooked by many customers but can add up over time!
Check Out the Terms
Before you sign up for a lending program, it’s important to understand the terms.
The following are some questions to ask yourself:
- What is the cost of borrowing this item? Is there an additional fee if I keep it longer than a specified period of time?
- Are there any restrictions on how many hours or days I can use it every week or month (for example, only during business hours)? If so, am I okay with that limit?
- Who can use this equipment (just me or my employees as well)? If so, am I okay with this restriction and do my employees need training on how to use the equipment properly before they start using it at work?
- Get feedback from the previous borrower. Before you borrow a piece of capital equipment lease, ask if they’ve had any problems using it and what they thought were the best features.
- Get feedback from the oil and gas equipment supplier. If possible, talk to someone at the company that manufacturing equipment finance or supplied your piece of machinery to learn about its strengths and weaknesses.
- Get feedback from your peers. Ask for other people’s opinions on different types of equipment—what did they like/dislike about each one? Was there anything unique about their experience that might be helpful for you?
- Get feedback from the equipment manufacturer or rental company directly: You know it best! Give them a call before signing on or booking online so you can ask any questions regarding safety precautions or proper use procedures—this is especially important if this is an unfamiliar type of tool for most people in your industry (for example, hydro excavators).
Have a Backup Plan
As you plan and execute your equipment rental, it’s important to remember that things can go wrong. Your equipment might not be delivered on time or the condition of the equipment may not be what you expected. Having a backup plan will allow you to avoid getting stuck with a bad deal because of unforeseen circumstances.
Explore your Options
When you’re considering equipment loans, it can be helpful to think about the implications of each option. Are there any fees or penalties? Will you have to sign a contract with a lender? Here are some other things that can help:
- Take advantage of all the information available. Before agreeing on anything, make sure you’ve read up on your options and know what they entail (or don’t!).
- Get feedback from friends and family who have used equipment lending before in order to hear their experiences firsthand.
- Have a backup plan if things go wrong with your first choice in case something doesn’t work out as planned; this way there won’t be any surprises down the road if everything goes smoothly but then later down the line turns out differently than expected!
Take a Test Drive
If you are considering purchasing new equipment, or if you have already purchased new equipment and would like to try out the unit before putting it into use, consider taking advantage of an equipment rental. The same goes for manufacturing equipment leasing or borrowing. Renting is always an option that can be considered when buying used or new equipment.