For some businesses, renting the equipment you need makes sense, especially in those early days, but eventually there comes a time when you find yourself day dreaming about owning your own equipment. It turns out that your dream might not be as unreasonable as you thought. If you find yourself in the following situations, it might be time to start looking toward ownership through financing.
1. You need the equipment more and more
When you started renting equipment, you might have only been using it once in a blue moon. Now that your business has grown or changed, you find that you need to rent the same type of equipment more often. Though renting was a great economical choice when you started, now it seems to be eating a hole in your pocket. Rather than increasing your renting expenses, putting that money towards a monthly payment will allow your business to plan for long-term growth.
2. Business shows no signs of slowing
Renting equipment may have been the best option when you were just getting started or things were a bit slow, but if business has really started to take off, it’s probably time to consider switching to financing the equipment you need. It will help you keep up with all the business flowing in without drastically increasing your expenditures. By making the equipment a permanent part of your business, you may find that business picks up even more.
3. You’ve had your eye on something
If equipment sales keep catching your eye or you’re finding yourself browsing dealers’ websites more and more often, it’s probably time to seriously start thinking about switching to leasing or financing. The money you spend each month on renting the equipment you need could be going towards a monthly payment on equipment that’s yours to keep. Even if you don’t have the perfect piece of equipment picked out, consider getting pre-approved for financing. You’ll know exactly what your budget is and won’t have to worry about missing a great deal waiting for an approval to go through.
4. There’s wiggle room in your monthly budget
You’ve crunched some numbers, cashed in the coin jar, and found that you have some room to spare in your budget. The best way to use this money is to invest it back into your business and financing equipment instead of renting is the perfect first step.
Not sure how much you need? A financing calculator can help you figure out a lot about your equipment budget. Not only will you be able to get an estimated monthly payment, but you can also find out what your breakeven would be, how much tax savings you qualify for, and your potential term length. You can use this information to determine how much you have to spend on equipment and if your budget can handle working towards ownership. When reviewing your budget, remember to eliminate the rental costs! Once you start financing, you won’t have to worry about renting.
If even one of these four scenarios sound like your business, it’s probably time to stop renting and start owning!