1. Storage: Rental equipment eliminates the need for additional equipment storage; thus reducing your overhead business costs.
2. Minimum Inventory: Ownership can be very expensive when equipment is idle. Combining ownership of basic equipment with rental equipment as needed will minimize idle time.
3. Right Equipment for the Right Job: Eliminate the hidden costs of inefficiency due to using the wrong size or type of equipment. Renting equipment ensures that you have the right equipment for the job.
4. Maintenance: Rented equipment eliminates maintenance concerns, repair space and time, spare parts inventories, mechanic costs and added payroll.
5. Breakdowns: All equipment is subject to occasional breakdowns. However, when rented equipment breaks down, idle time is minimized by replacement equipment from rental company and repair costs are eliminated.
6. Equipment Obsolescence: Ownership of equipment includes increasing downtime, slower completion, and rising wage costs due to owning worn, obsolete models, when new better and faster models are available from a rental company.
7. Disposal Costs: Preparing used, obsolete equipment for resale, and related advertising and selling costs, are issues that are eliminated by the use of rental equipment.
8. Cost Control: Knowing the true costs of owned equipment is difficult. Rented equipment offers you just one cost figure—the rental invoice.
9. Conservation of Capital: Renting equipment frees your capital for other, potentially more profitable uses.
10. Increase in Borrowing Capital: Farmers and contractors who rent instead of purchase, find borrowing easier with a better ratio of assets and liabilities, since rented equipment does not appear as a liability on the balance sheet.