The Rental Concept

Renting makes sense when you consider acquiring assets or equipment, especially if the following is taken into account:

  • It depreciates (equipment loses rather than gains value over time or with use);
  • It can quickly become obsolete (and need regular replacement);
  • Sometimes assets are only required for a certain period or project, with limited remaining life and value thereafter;
  • Your business is specialised or has the inability or limited logistics to dispose of ‘non-core’ assets, which become too expensive to maintain or increase; the total cost of ownership if it’s not replaced; and
  • Assets form part of operations where they are linked to income generation.

Stay ahead of the Competition

You should benefit from using assets and equipment, not owning them. Acquiring the latest technology and equipment is important to stay relevant and competitive. Renting enables you to enjoy full, uninterrupted use of the equipment, after which it’s simply replaced or upgraded when the agreement comes to an end.

Deal with Depreciation

Since there is no large lump-sum required upfront, entering into a rental agreement for depreciating assets frees up capital, which can be used for profit-generating initiatives and investments. It also allows you to gain the use of the equipment you need immediately, but spreads the payment across its useful lifetime in your business.

This approach can prove very cost-effective, because the periodic rental payments that are made will usually be fixed for the term of the contract.

Maximise your Purchasing Power

A rental agreement enables you to stretch your current budget a lot further. This can give you up to 250% more buying power, making it possible to procure more of what you need or to obtain specialised capital assets that would be too expensive otherwise.

It also empowers you to fix your equipment costs with regular, predictable payments.