Guide to Equipment Rental for Your Business

Restaurants need ovens, retailers need cash registers and every office space needs a functional copy machine. No matter what type of company you own, you can't do good business without the right tools to do your job well. After all, having the right equipment — whether state-of-the-art computers or just a sturdy desk on which to write — can make your business; and in the same turn, having the wrong equipment can easily break it.

Business tools can be expensive, however, especially for young start-ups. Budget-conscious companies, then, rent or lease their equipment, which can:

1. Free up cash for other expenses and investments.
2. Reduce the amount of debt on your financial statements.
3. Facilitate easier and less expensive equipment upgrades.
4. Reduce your tax burden, thanks to applicable deductions.

Action Steps
The best contacts and resources to help you get it done

Evaluate your needs

Every hunt for equipment – rented, leased or owned – should start with an inventory of your business needs. Everything from furniture, phones and computers to forklifts, software and vehicles, can be rented. Decide what you need to own, and what might be worth borrowing.

Decide: Rent or lease?

A lease usually covers a period of time longer than a week or a month and the title transfers to you. Usually, you're also responsible for maintenance. A rental agreement, meanwhile, covers use of an item for a short time and the rental company is responsible for maintenance and breakdown.

Find a lessor

When you rent or lease equipment, it's important to find a lessor who will treat you like a partner rather than an account. Look for a lessor who has experience with or specializes in equipment for your industry. Ask for references, too, to help you evaluate prospective leasing and rental companies.

Choose a lease financing company

The company that will finance your lease is not typically the same as the company who will provide your rented equipment. Start with your own bank or financial services provider before soliciting other companies to broker your equipment lease.

source: www.business.com