Contractors equipment rental in Chicago, IL
1. Minimum Equipment Inventory:
Equipment ownership can be very expensive, especially when that equipment is idle, as owned equipment often is. By combining ownership of basic equipment with rental equipment as needed, idle time and cost is minimized.
2. Right Equipment for the Job:
Ownership of equipment can add two hidden but very real costs to your job.
1) Inefficiency due to the use of the wrong size or type of equipment, and
2) additional hidden costs of maintenance and repair incurred by using your own equipment. Rental equipment ensures the right equipment for the job.
3. Warehousing:
Warehousing sites are seldom needed for rental equipment. Some contractors actually operate successful construction businesses with little more equipment overhead than the cost of a telephone by having our rental company act as their warehouse.
4. Breakdowns:
Virtually all equipment is subject to occasional breakdown. However, when rented equipment breaks down, it can be quickly replaced by our rental company at no cost to you. Time losses on breakdown of owned equipment are eliminated along with the cost of repairs.
5. Maintenance:
Equipment rented includes full maintenance. You need no repair shop, no spare parts inventory, no mechanics, and no added maintenance payroll or maintenance recordkeeping.
6. Equipment Obsolescence:
Manufactures are constantly trying to capture a bigger share of the construction market by designing new, faster, and more efficient equipment. Ownership involves the risk of rising wage costs and slower job completion time due to owning equipment that has become slow and inefficient compared to new models. On the other hand, our rental company keeps an updated inventory of the latest types and models of equipment.
It costs money to sell any type of used or obsolete equipment. Preparing the equipment for resale, advertising and selling time are important costs factors of ownership that do not occur in renting.
8. Cost Control:
Better cost control is possible with rented equipment. Knowing the true cost of equipment owned is difficult. Rented equipment offers you just one accountable figure: the cost shown on the rental invoice.
9. Inventory Control:
You, as a contractor, will find you have less inventory loss due to pilferage when you rent equipment rather than purchase it. The presence of continuous billing on rented items tends to establish personal accountability for them. It is difficult to establish personal accountability on a large amount of owned miscellaneous equipment. On the other hand, equipment rented from us that must be ultimately be returned, somehow seems to be watched with sharper eyes.
10. Personal Property Taxes/Licenses:
There are no personal property taxes or license costs for the user of rented equipment. These are substantial costs that must be added to the cost of owning rather than renting.
11. Conservation of Capitol:
Renting construction equipment rather than owning frees capitol for other, potentially more profitable uses.
12. Increase in Borrowing Capacity:
The contractor who rents rather that buys generally finds borrowing easier because he has a better ratio of assets to liabilities since the equipment does not appear as a liability on his balance sheet. This means that the normal line of bank credit is not disturbed. This is most important in securing the bonds necessary for construction work.
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