When weighing up the costs of renting versus ownership, it’s worth remembering that:
- Equipment depreciates over time.
- Equipment can rapidly become obsolete.
- Business expansion and contraction cycles, plus project needs, can result in changing asset requirements over time.
- Upscaling or downsizing owned asset inventory can be time-consuming.
- Asset disposal can be costly and loss incurring.
- Effective asset funding can free up cash flow and reduce expenses.