Do you want to rent or buy? It’s a question that most companies struggle to answer when it comes to operations that involve forklifts. Most companies nearly all industries will require a forklift in their activities. The businesses use forklifts to handle heavy stuff like stocks.
Before deciding to hire, factor the period you will need the machine, whether you have enough storage space and the weights you will need to lift. These are the advantages of hiring instead of purchasing forklifts.
Increased Flexibility When Hiring
Hiring allows a business to acquire forklifts during the high season while not renting them during low seasons. Therefore, a business will only hire when there is demand hence reducing operation costs. You may also need to use the machine for a few hours; thus, you can hire during that time.
Hiring will allow a business to upgrade when it’s priorities change. When your business buys a forklift, it has to own it forever. With rampant technological changes, your business will have to change the equipment frequently. So, renting allows your business to upgrade the forklifts easily as the technology changes.
In cases where your business has obtained a contract in a different location, hiring the equipment is advantageous. Your personnel will head there, execute the work without worrying about how to transport the machine to the new site.
Avoiding the Purchase Cost
Buying a forklift is costly. Hence, where your company does not frequently use the machine, renting is the best option. That purchase cost can be invested in other crucial business operations.
Hiring is also beneficial where you are a new company that is trying to break even. Where your company is handling a new contract that requires much forklift duties, renting allows you to hire at less price hence retaining much profit.
Allows You to Avoid the Repair and Maintenance Costs
Since a forklift is a piece of equipment, it has additional costs apart from the purchase price. You will need to maintain the machine to avoid unnecessary breakdowns. For instance, for non-electric forklifts, you may need to grease the parts regularly. You may also require spare parts.
For example, if a forklift breaks down, the forklift hire and training company will be responsible for replacement. Most of the renters have insurance to cover them. Your business can avoid all these costs by merely renting a forklift when the need arises.
Avoiding the Legal Hassle of Owning the Equipment
Any business that utilizes forklifts in its operations must adhere to several laws and regulations. These rules relate to safety and health requirements. The controls are set by the Australian safety and compensation council and under the occupational safety and health act.
Avoid all the legal requirements by hiring and leave such responsibilities to the renter.
The Tax Benefits of Renting
Where your company hires the forklifts, then the payments may be classified as operating expenses. These costs can be one hundred percent deductible. However, owning the machine allows you to claim only depreciation.
When you finally decide to rent a forklift for your operation, ensure you deal with a reputable company. The benefits of renting are the flexibility you will enjoy, avoiding capital expenditure, repair and maintenance costs, legal requirements, and the tax advantage when renting. The forklift hire and training company will assess your business needs to help you settle for the right machine.