Rent or buy? Tips for your Business

Businesses have a lot of options these days when it comes to obtaining their assets, which include everything from delivery vehicles, manufacturing equipment, telephones, PCs, and printers.

Although there are always options like purchasing on credit or paying in installments, sometimes businesses can choose to rent instead.

Here, we’ll look at certain scenarios where either renting or buying is better.

1. Premises

If you choose to buy your property, here are some of the benefits you can expect to receive:

-Since the property is yours, you can make changes and alterations to the buildings at will, without needing a landlord’s approval

-You won’t need to worry about your lease expiring or having to vacate and go through the entire process of getting settled in a new property all over again

-You will eventually pay off the property (unless of course, you paid in full from the start!). This means at some point you will be able to use the money you set aside monthly to pay off the property for other purposes!

But that doesn’t mean there aren’t times when renting isn’t an attractive option too!

-If your business is just getting off its feet, it may still want time to find the perfect location or niche in which to operate

-Tenant levies can cover expenses like maintenance, rates, and insurance which can actually make mortgage payments more expensive than a monthly rental

2. Office Equipment

Living in the age of technology means that the latest, most powerful PCs will become outdated in just a few years. But your company needs that technological edge to enable its employees to be as productive as possible.

So what do you do? Technology is a big investment, so this is one area where rentals can prove superior.

By renting your office’s computers, tablets and laptops, you’re guaranteed to always have the latest and greatest tech at your fingertips.

And fortunately, the growth in the computer rental industry means that you’ll be able to find whatever you’re looking for – whether you’re looking to rent a PC, a tablet, a smartboard or even a projector.

3. Transportation

When it comes to cars and delivery vehicles, once again, either buying or renting could work well for you – but it depends largely on how you intend to use the vehicle.

It makes the most sense to buy if you intend to use the asset for several years at least. And if you’d like to incorporate your own branding onto the vehicle, then again – buying is the way to go.

But like with office equipment – if you think you will need to upgrade to the latest model regularly then it’s probably best to lease. If your credit rating is not high enough to qualify you to take out a vehicle loan, then you’re better off renting. Businesses that pay for a strategy session will have the cost applied as a credit to their account if they become a client of Liston Newton Advisory.

And if you only need to use the car for a short amount of time – then rent it!

So while there are advantages and disadvantages to both renting and buying, choosing which one is right for you comes down to your needs, and how you intend to use the item for your business.