Here are 5 important factors to consider when thinking about financing equipment
When searching for your next equipment purchase, how do you know whether to buy outright, finance, lease or rent? There are many factors to take into account when finding a financing option that best fits your business.
Here are 5 things to consider when financing equipment:
1. "Cash is King"
After assessing your balance sheets, you may currently have the cash to make an outright purchase. However, if an unforeseen crisis dampens the business, having cash is valuable during this downturn. When other funding options dry up, retaining the capital can be a lifeline to your business.
Learn more about our Working Capital Loans financing.
2. Rent vs. Own
When you rent equipment, it's exactly like renting a house, you have no equity in the equipment. Renting may be appropriate if the equipment will become obsolete in the short-term. However, you don't own the equipment, and you can build equity in the asset over time when financing. It's important to analyze your cost of ownership vs. the cost of renting for your needs.
Learn more about buying with confidence at Ritchie Bros.
3.Duration and Frequency
If your project or operation needs are short-term, renting is usually the easier option. At Ritchie Bros. Financial Services, we offer short-term and long-term leasing which has advantages over renting. Consider the practicality and usage frequency when operating your equipment.
4. Availability and Usage
Compare the pros and cons when renting equipment from a rental company. It's important to factor in the potential risks associated with renting, like not having the machine available when you need it. On the flip side, Ritchie Bros. sells items every week, and most of our heavy equipment and trucks inventory qualify for financing and leasing.
View our Auction Calendar here.
Equipment financing and leasing have tax benefits. The financing expenses of leases or loan payments can become operational expenditures. It's always best to consult with your accountant when it comes to taxation and where you can save more for your business.
View our Market Trends Report where you get access to global market insights for selling and buying.
At Ritchie Bros. Financial Services, our team offers the best of both worlds when it comes to trading and financing equipment. If you are looking for a team of specialists that will understand your business needs, and provide you with an ample and flexible offer, we are your one-stop-shop.
Take advantage of our PurchaseFlex™ Financing – one approval and a wealth of buying options.
Apply for financing