Many construction companies decide to hire equipment rather than buy the machines. The reasons for this may vary as each business has its own strategies.
However, the main reason is that most companies don’t want to spend all their capital on equipment that’s not guaranteed to bring in a profit. Machines such as excavators also take up a lot of space in a facility. So the best solution is to opt for excavator hire.
That’s only one benefit of hiring the equipment rather than buying it. We list five reasons you should use an equipment hiring company for your construction business that will help you make wise business decisions in the future.
1. The Cost of Hiring is More Manageable
The weight of a midrange excavator is between 15 to 20 tons and the cost would be thousands. But using an excavator hire company can cost you as little as a few hundred dollars a week. That makes hiring more manageable than spending large amounts of capital at a time.
You also have to think about the costs of regular maintenance and services when you buy equipment. This can add up over time. If there are problems with oil leaks or some parts stop working it can cause unpredictable maintenance charges.
If you hire equipment the costs will be manageable because you’ll only be paying for the initial hire. The hiring company will look after maintenance costs. This will save you a lot of stress because you don’t want all your revenue going into equipment repair and maintenance.
2. Equipment Is Inspected Regularly Before You Hire
As mentioned before heavy machinery namely excavators, forklifts and bulldozers need to be inspected regularly. Some heavy equipment has hydraulics and parts that need to be checked before the machine can be used.
The mobility of the machines is checked on a regular basis as well as upgrades to any technology used to operate the equipment. The advantage of hiring equipment is that you don’t have to appoint a professional or pay for the parts for these regular maintenance checks.
All checks, repairs and replacements are done by the hiring company so you can concentrate on running your business without hassle.
3. Avoiding Storage Costs
Buying large equipment will require extensive short term and long term construction storage solutions. Equipment can’t be left outside as there’s a risk of the machines getting damaged by the elements. The machines need to be stored in a proper facility which will cost you more money.
Another downside to buying is the bigger your business grows the more equipment you’ll need as well as space to store the machines.
A hiring company simply delivers the construction machinery you want and then picks them up again when you’re done. Construction equipment hiring companies have high-quality logistics services so you don’t have to worry about storing or moving machines.
This saves you the hassle of trying to find space to store all of your equipment and the costs involved for storage space.
4. You have a Stronger Chance of a Business Loan if You Hire
Buying construction equipment carries more liability than hiring because machines can break and age over time. This could weaken your business as you’ll be spending capital to repair and maintain your machines regularly.
Also consider: how does this affect your chances of a business loan?
Most banks will see equipment purchasing as a weak point of your business. You may not be approved for a business loan if you’re starting up or need to invest in a new aspect of your company.
Did you know that you have more chance of being approved for a business loan if you opt to hire equipment? This is because banks don’t view rental expenses as a liability for construction companies. The equipment isn’t yours so you don’t pay for repairs and maintenance.
Hiring equipment will increase your chances of a business loan when you need it most.
5. There’s no Long Term Commitment
Construction equipment costs a lot of money and so this may put a lot of pressure on you as a business owner. Investing your money in expensive machinery and not knowing what the turn out will be may cause a lot of stress in your life as well as on your business.
Having your own equipment can be beneficial because you can use your machines whenever you need to but the costs of keeping your machines upgraded will be high in the long term.
In contrast there will be no long term commitments if you hire equipment from a reputable company.
You’re able to opt for the latest, state-of-the-art machinery whenever you need it; for big or small construction projects. You can concentrate on your business while the equipment hiring company provides you with fast reliable services.
So save on money, time and storage space when you manage your construction business the smart way.