Industrial Equipment 101: A Simple Guide

Why Renting Forklifts for Your Business May Be Better Than Buying Them

If your company uses forklifts for moving materials or on the shipping and receiving dock, you may want to consider renting the forklifts you use instead of buying them. There are some benefits to consider, and rental companies that provide long-term rentals can offer you service and warranty packages with your equipment.

Preserving Capital

Anytime you make a significant purchase for your company, it becomes necessary to dip into the capital that the company has for the expenditure. If you need to purchase a few forklifts, the cost can be substantial, but renting the same machines means paying the rent on them in smaller payments, preserving the balance of capital, and allowing you to still get the equipment you need. 

For companies that need capital for investing or for purchasing other materials, breaking down payments into smaller amounts over time can make a real difference to the bottom line. The concern that you will be continually paying for those forklifts is real, but other benefits offset the regular payments. 

Repairs and Service

When you rent a forklift, long- or short-term, the rental company owns the equipment, and often maintaining it falls to them. If the equipment breaks down, there is also the chance that the rental company will provide a new machine or a loaner until yours is fixed.

When you are entering into a contract for rental equipment, check the fine print to make sure they are covering the repairs and the maintenance and be sure that you discuss what that entails. Eliminating the cost for maintenance will save you some money in the long run, even though you are making recurring payments for the rental.

Rental Cycles

The life of the forklift is going to vary according to the use and maintenance of the machine, but you may want to specify in the contract the duration of time you will rent the machine, and when or if the rental company will replace it at some point. Getting new equipment every few years will reduce the cost of operation.

The rental company often takes the hit on depreciation, so that is one less thing for you to worry about, and budgeting for the equipment is very straightforward because the only payout associated with the forklifts is the rental. The payment is consistent, and you don't have to worry about the cost of the machines changing every month or surging because of a breakdown that you could not have foreseen coming.

For more information about forklift rental, contact an equipment supplier in your area.