Often businesses need to look at more cost efficient ways to save money. This can be done in a variety of ways, but frequently overlooked is the option to rent your much-needed refrigeration equipment instead of buying it outright. Whether you are just starting a business venture or have been in the game for years, opting to lease this expensive equipment could end up saving you money in the future. Of course there are positives and negatives to either buying or renting, and this article will help you weigh those pros and cons and help guide you to making the right choice.
Advantages and Disadvantages of Buying
Frankly, renting refrigeration equipment may not be the right choice for your business. If your business has the extra capital available to flat-out purchase a new fridge, buying would be your best bet. By doing this you guarantee that the fridge is yours to keep, and many businesses can write-off these purchases and possibly get a tax break. Major purchases like these are also risky and sometimes can blow up in your face. This can happen if your new fridge decides to break down after only a couple years, and then you will have to cover the repair or replacement costs because it’s no longer protected by the warranty. Another disadvantage of buying a fridge is that your business could outgrow or need to downsize its refrigeration needs. This would be difficult if you bought a fridge instead of rented one. Then you would be stuck with what you have unless you want to spend more money to make these changes.
Advantages and Disadvantages of Renting
Depending on the size of your business, renting refrigeration equipment may be your best option. Of course, when you decide to rent equipment instead of buying, you are ultimately going to pay more for it in the long run. This is true only in rent-to-own situations, but with places like Bromic Rentals fridge rentals this is not the case. Not all refrigeration rental businesses are rent-to-own, and it’s important to keep this in mind. In fact, many commercial refrigeration leasing companies deal only in rental agreements that have you pay weekly or monthly fees. Making these small payments can really help small businesses that are trying to get off the ground. Companies that don’t have a lot of spare capital can still get the equipment they need and get their business going without starting out with a larger investment than is necessary. Another advantage of renting, especially for smaller companies, is that it really boosts their credit scores. Building up credit scores allows them to rent or purchase more expensive equipment down the line at lower interest rates.
Think Carefully
Renting of buying refrigeration equipment for your business can either save or cost you money. It is important to consider your options and do a little research before making these big decisions.
