A lot of misconceptions surrounding the leasing or renting of heavy equipment continue to persist. Here are four of the biggest myths about equipment rental debunked, so you can make better decisions when it comes to securing your business with the right tools in an affordable way.
As a society, we have been conditioned to believe that renting or leasing is bad and owning is good. This mindset is prevalent when it comes to housing and automobiles and it has even crept into the way we think about the heavy equipment for businesses use.
With large or heavy equipment being such a critical component in the construction industry, contractors who are serious about making their mark on the sector need this equipment to be successful. But what they don't need is a false belief that owning this equipment is always the best option.
In our article this week, we set the record straight on the top four myths surrounding equipment leasing.
Your First Choice for Equipment Leasing in Calgary
First Capital Leasing is a Calgary-based lending company that specializes in equipment and vehicle leasing, auction financing, sale-leasebacks, and commercial equipment loans. For more than 25 years, we've been helping businesses across Canada with their commercial equipment and financing needs, helping them quickly acquire the essential tools they need to be successful.
Contact us today to set up a consultation with one of our lending experts, and let's get you the important equipment you need at a competitive rate.
Equipment Rental: Debunking the Top 4 Myths
Renting or leasing equipment can be a great way for your company to free up its working capital while still acquiring the critical tools it needs for big projects or its day-to-day operations. However, many people still believe that renting or leasing is a waste of money. Additionally, there are some other common misconceptions about the practice which persist.
Here are the top four misconceptions of equipment leasing:
1. Leasing is expensive: Compared to paying upfront for a major piece of equipment, leasing is much more economical in most situations. There may be times when buying makes more sense, primarily when the cost isn't substantial or you have plenty of capital to cover it. Of course, the decision to buy or rent is dependant on numerous factors. Some of the main ones to consider include:
- How often you plan on using the piece of equipment?
- How much it will cost to maintain it?
- What overall impact will the equipment have on your budget?
If you need a specialized piece of equipment for one project though, leasing is undoubtedly the best choice from an economic standpoint.
2. Leased equipment is in bad shape or outdated: This is probably the biggest misconception about leasing equipment. People tend to think that because it's a rental, the equipment will be in bad shape or outdated. The reality couldn't be further from the truth. In fact, leasing equipment is often the best way to obtain the latest and most technologically advanced equipment for your given industry at a low price. Keep in mind, leasing companies won't last long if the equipment they're renting out is subpar or in poor condition. Just make sure you do your research and choose a well-respected vendor.
3. Rentals need to be scheduled way in advance: While certain pieces of equipment will always be in higher demand depending on the season, that doesn't necessarily mean you will have to schedule your rental too far in advance. Our team can even work with you to find the equipment you need by utilizing our large network of vendors, allowing you to obtain it even faster.
4. Leased equipment isn't tax-deductible: This misconception is completely false. Leased equipment is certainly tax-deductible and it can even provide further tax advantages than ownership can. While it's always best to check with your accountant or tax advisor about these sorts of things, the lease payments you make on a piece of equipment can often be deducted from your earnings.
Leasing Equipment Is Often a Smart Decision
Leasing equipment can provide your business, construction company, medical office, manufacturing company or warehouse with the tools it needs to improve its operational capabilities at a reasonable price. At the same time, it will help keep your cash flow strong and protected, with lower monthly scheduled payments, allowing you to use your working capital for other things or emergency situations. As we've shown above, the four main myths surrounding renting equipment are simply that: falsehoods that shouldn't dissuade you from utilizing this valuable approach to equipment acquisition.
If your company needs equipment leasing or vehicle fleet leasing in Calgary or across Canada — no matter the industry or equipment required — contact us today to set up a consultation with one of our lending experts. Our tailored financing solutions with no age or mileage equipment restrictions could be just what your business needs to grow and succeed.
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What type of leases do you provide?
At First Capital Leasing, there are numerous leases we provide. This includes capital leases, operating leases, skip payment leases, and more. Click here to see all the leases we offer.
What types of assets can I lease through your company?
We can provide financing solutions for equipment across nearly all industries. Some of the most common industries we provide equipment leasing for include construction, agriculture, automotive, fitness, and technology. Click here to learn more about the various assets we can help you lease.
How long has your business been around?
First Capital Leasing was founded in 1994, and we have over 85 years of combined experience in the commercial leasing sector. Click here to learn more about us and why you should choose us for your company's equipment or vehicle financing needs.