7. Disposal Costs:
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.