Hi,
Once a business owner has determined what method of financing he or she needs for a purchase IE., to rent, lease or buy, there are many factors to consider:
Rentals:
1) First determine if it's a short term rental or a long term rental.
2) Many equipment suppliers have both short and long term rental agreements available in house. For example, if an equipment supplier has a piece of equipment returned, and is unable to quickly sell it, many times it will be made available on a short or long term rental basis. Also, inquire about their price breaks as determined by rental periods.
3) Check with all local equipment rental companies to obtain quotes for the piece of required equipment.
4) It is worthwhile to check equipment rentals within a 100 mile radius, as sometimes the rental prices are lower in small towns and rural areas.
5) Decide whether it's the type of equipment, or brand which is important, as it may be worthwhile to check with various competitors to see what types of rental programs are offered.
6)Inquire about the insurance requirements with each obtained quote, as they can vary dramatically from company to company. In some cases, the business owner's insurance company will cover the insurance on rental equipment.
When obtaining rental quotes, be consistent in your request to each supplier, so that you are comparing apples to apples.
Tomorrow I'll write about leasing.
Until then,
Alan
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