Tech costs can be insanely high for some businesses. Simply having the capital to make a company’s initial tech purchases can be a huge barrier to entry for a tech-light business, to say nothing of one that needs more up-to-date equipment. Fortunately, you don’t have to buy to get the tech you need. Instead, you can rent equipment that fulfills the same purpose. Below are five reasons that might convince you to rent your tech equipment instead of buying.
1- No Up Front Costs
One of the most common reasons that companies rent is because there is not much of an up-front cost to renting. While renting can be more expensive than buying over the long term, it’s significantly less expensive for the near future. This is something that can be a major benefit for companies that are just starting out or that have major cash flow issues. If you need your equipment now and you can’t spare much from your budget, it’s better to rent than to buy. At the very least, you’ll have more money available to take advantage of new opportunities. Sometimes, it’s better to save yourself money today so that you can have an opportunity to make more tomorrow.
2- Less Obsolescence
One of the worst parts about dealing with tech equipment is how quickly it becomes obsolete. By the time you’ve run an analysis and gotten all the approvals from your board, that new equipment that you’re bringing in is probably obsolete. When you decide to rent your equipment instead, though, you’ll get to avoid all of that and switch out your equipment every time it stops meeting your needs. Getting out of the huge cost sink related to planned obsolescence is a great way to save your company money and allow you to make smarter investments with your capital.
3- Quicker Changes
When you buy technological equipment, you’re usually stuck with it for quite some time. This is fine if you don’t expect your business’ needs to change, but not so helpful if you need to make quick changes. If you know that your tech needs are going to change frequently, there’s never a good reason to buy when you can rent instead. Look at renting as the best way to stay mobile and the easiest way to make frequent changes. If you’re looking to keep moving, the last thing you need to do is worry about paying off the equipment that no longer fits your needs.
4- All the New Toys
Renting is also the fastest way to get access to newer technology. It’s probably not in the budget of most companies to switch to the bleeding-edge tech that’s out there every year, but companies that rent technological equipment should be able to move on to the new toys every year. This means access to better equipment before your competition can even run a cost-benefit analysis, helping you to stay ahead of the tech curve. Renting is simply the best way to take advantage of all the great new technology that is on the market.
5- Predictable Costs
One of the best parts of renting technology is the fact that you’re not going to be the party dealing with upkeep. Most rental agreements will allow you to instantly switch out a product if it’s defective, giving the renter a chance to get something new and improved almost instantaneously. This means you know exactly what you’re going to be paying for your rental equipment every month, unlike the possible maintenance costs you might have to factor into equipment that you buy.
Don’t force yourself to hold on to equipment simply because you want to be the owner. If you need tech, consider the benefits of renting instead. Rented tech costs less in the short term, frees up more resources, and allows you to get better equipment every time you rent. While you may not own it outright, your business can still get the utility it needs for a fraction of the cost. Renting might not be the traditional way to invest in tech for your company, but it may be the best way to get the most for your money.