Businesses which recycle on a significant scale often face a decision: they must choose if they should purchase, rent or lease their equipment.
In general, it is advisable to make decisions on a case-by-case basis. Perhaps you’re considering purchasing a baler, a business compactor or an industrial waste compactor. We can assist you in making that choice.
To begin, let us discuss leasing. This is where you rent the equipment for a certain period of time. The amount you pay and the length of the lease cannot be amended without the owner’s and lessee’s written approval.
- Equipment Updates – Leasing guarantees that your equipment is constantly up to date. Each time you lease a new baler, you’re receiving the most recent model available from the owner; this will assist you in maintaining efficiency without spending your entire budget.
- Predictable Expenses – Expenses will increase over time, but hardly ever in a rapid burst. For businesses operating on a shoestring budget, leasing can help guarantee that financial plans do not have to be drastically altered.
- No Upfront Costs – You just pay after you have benefited from the item. If you lack the funds at the moment, you are not required to halt your recycling activities. Profit quickly with an industrial garbage compactor, for example.
- Maintain a Competitive Edge – Due to the fact that you will pay nothing upfront and will get cutting-edge technology, you will be able to compete with rivals who have larger budgets (or even own their machines outright).
Renting is a pre-arranged agreement for shorter periods of time (often 30 days). You may terminate the arrangement, but only after the current rental cycle. After that time, the agreement automatically renews.
When you rent an industrial garbage compactor, for instance, the landlord remains liable for its maintenance.
- Access to Expensive Equipment at a Low Cost – If you cannot purchase a state-of-the-art industrial waste compactor, renting one is an excellent option. Compared to the thousands of dollars required to purchase it, you may instead pay only a few hundred dollars every month.
- No Maintenance – The landlord is liable for all maintenance expenditures under the rental agreement terms.
- Your Waste or Recycling Provider of Choice – The fact is that business recycling equipment is available from a variety of manufacturers. You therefore have many options, which naturally push up quality as competitors vie for your business.
- The Most Effective Equipment – Every kind of equipment can be rented. You’ll find it simpler than ever to stay competitive, while maintaining sound financial practices.
- Freight and Installation Included – Another significant advantage of a rental arrangement is that freight and installation are included. The supplier is responsible for delivering and setting up the equipment.
- Tax Deductible at 100% – The money you spend renting equipment is entirely tax-deductible. Under present law, you can deduct the cost of renting a recycling compactor from your tax statement at the end of the year. This might result in a savings of thousands of dollars.
Purchasing recycling equipment outright has pros and cons. You are financially accountable for everything. This is unlikely to be a practical option unless you have an enormous budget. On the other hand, purchasing does have some advantages.
- Buying is Less Complicated Than Leasing and Renting – Leasing and renting may be fairly complicated. For one thing, legal agreements are inherently difficult to navigate. Purchasing your equipment eliminates all of these issues.
- You Have Control Over Maintenance – This might be positive or negative, but it will be a significant benefit to experienced operators; they have the option of paying for upkeep or just replacing the item.
- Tax Deductible – You can deduct part of the cost from your tax statement. As is the case with renting, this can result in you receiving thousands of dollars back from the government. Tax deductions are also available for recycling equipment.
Want to make the best equipment decision for your company? Speak with your friendly experts at Reaction Distributing. Visit us online or call us at (866) 244-0009 today.