Owning and operating an industrial business can be an expensive undertaking. Expenses like travel, insurance, and wages can cost your company a fair portion of its profits each month. You may not have a lot of money left over with which to buy brand new industrial equipment.
Still, you cannot forgo acquiring equipment that you need to carry out jobs for which you have been hired. You can secure the gear needed for a project by leasing equipment from a dealer accustomed to working with wastewater treatment companies, machine shops, and oil field contractors.
Avoiding Unnecessary Expenses
When you buy this kind of equipment, you take on expenses that you may not even be aware of right off the bat. To start, this kind of gear needs regular upkeep. When you own it outright, it is up to you to pay for the upkeep and maintenance. The costs of the upkeep alone can range in the hundreds or even thousands of dollars.
Likewise, machinery wears down and needs to be repaired every so often. Repairs can cost more than the actual maintenance and take a serious toll on your bottom line. You may waste an entire month’s profits paying for the repairs of the machinery that you own.
However, when you lease the equipment, you avoid these costs and instead can pass them onto the dealer from which you have rented them. The dealer will bear the responsibility of maintaining and repairing the equipment. Moreover, it may need to give you a loaner replacement during the time that the leased equipment is in the shop.
Further, you also avoid having to pay taxes on equipment that you lease. Once you are finished with it, you can return it to the dealer. You will not have to claim it as an asset on which you will pay state and federal taxes. In some instances, you may even be able to write off your lease as a business expense on your tax returns, helping you recoup some or all of the cost you put out for the rentals.