To support the rental market, Mitsubishi HC Capital America provides financing programs to help construction firms access equipment.
“ Mitsubishi HC Capital America is very supportive of the rental industry and provides rental fleet financing to national and independent rental companies. Our rental finance programs can be built to the specific need of the rental fleet and can incorporate deferred or seasonal payments and flexible early buyout fees.”
End user customers can also leverage lease programs for longer rental cycles – typically 24 to 36 months.
Rental Challenges Despite its benefits, renting has its challenges.“ Scheduling and availability of equipment can be a logistical challenge,” said Franklin.“ Ensuring the right tool and piece of equipment is available when needed and coordinating rental timelines across multiple projects can lead to project delays.”
Another challenge includes handling rental agreements, terms and conditions for multiple pieces of equipment and projects. According to Franklin, this requires a skilled project manager and clear communication. Contract management is essential for contract compliance and to avoid disputes.
To ensure availability, rental companies should analyze historical data and market trends to predict future demand.
“ By analyzing historical data and market trends, rental companies can predict demand periods and adjust inventory levels,” Franklin explained.
Renting vs. Buying In some cases, buying equipment still makes more financial sense than renting. For example, if the equipment is needed for an extended period or multiple projects, buying can be more costeffective.
“ The initial investment may be high, but it eliminates ongoing rental fees,” said Franklin.“ If the equipment will be used frequently and consistently, owning it can save money in the long run.”
Ownership also allows for equipment customization and potential tax benefits such as depreciation deductions and tax credits.
Rent, Lease or Buy? Questions to Ask
Before deciding, Franklin suggests firms consider the following:
Can my business support the extra capacity?
Every new equipment purchase is an investment in added capacity or capability.
“ But, with that comes added responsibility. Ask yourself, can your business fully utilize the increased capacity this purchase will provide?”
How else can I use the cash instead of a major purchase?“ Cash is often seen as the most straightforward option,”