Tag Archives: renting heavy equipment

To Buy or Not Buy Construction Equipment

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It is very important that you have the right kind of equipment to make sure that your construction business is going well. It is not always the availability of capital that would determine if you should rent an equipment of buy one. It is one of the most challenging decisions that have to be taken in this business. There are a few factors that play quite an important role when it comes to the decision of either buying or renting the construction equipment. These factors are discussed as follows.

One of the factors that are to be considered is the capital. The current situation of the capital of the company is a condition that may affect the decision. If conserving the capital is felt important by the company, it should probably go for renting. There are many companies that go out of business because they fail to make payments. Therefore, if a company is going through a cash crunch it is probably a good idea to go for renting the equipment instead of making a permanent purchase and digging a hole in the company capital. Therefore, it can be said that, although, the capital is not the sole reason but is quite an important factor that may influence the decision.

The regulations imposed by the government also play a very important role when it comes to making these decisions. The rules and regulation keep changing regarding the possession of heavy equipment. Some states make the regulations much more liberal. Therefore, it depends on how the conditions are in your state that will influence the decision whether to buy or rent heavy construction equipment.

Another important factor that plays a very important role in this regard is the management of fleet. Some companies may have a high level of competency when it comes to fleet management. If the company has excellent skills when it comes to logistics, transportation, service of equipment and maintenance it is a good idea to have hundred percent ownership of the fleet. However, if the company lacks the desired amount of expertise in fleet managing, it is probably not a good idea to buy your own fleet.

Buying or renting equipment will depend a lot on the amount of risk that you are willing to take. You may not want to take risk or you may be a risk taker. However, it is always the prerogative of the businessman to take calculated risks. There are many factors that are to be considered when it comes to taking risks. If you think that the current year is going to be a good one as far as fiscal matters are in concern, you can go ahead and take risk of buying equipment. However, for those who want to check their grounds safely and take no unnecessary steps, renting the equipment is always a good idea. The production value will depend on the quality of the equipment and not on whether you have the ownership of the equipment. Therefore, when you acquire the machine make sure that you are paying money for a worthy machine no matter you buy or rent.

 

 

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Renting heavy equipment in 2015

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Setting up a construction company has never been an easy task especially for people who do not have anybody from their family into this industry. Knowing the tricks of the trade can be a very difficult job and on top of it procuring heavy equipment can take you on a royal ride. Buying heavy equipment will eat away most of your investments and you will be left with hardly anything to take care of your business expenses. This is the problem which many newbie are experiencing and when they realize that things are going out of their hands, they wind up their business. This brings an end to their dream of establishing a construction company.

Now for people who have heavy equipment that are mainly lying idle as they are out of business for few months, they are not sure what they can do with those machines. It hurts to see them doing nothing and getting rusted remaining out in the sun. Here we have 2 set of people with 2 different requirements but both associated with each other. In other way, both of them can help each other by the later one giving the machine on rent and the former paying a said sum of money on each and every month for a defined period of time.

The year 2015 will give a lot of opportunities to people falling under these 2 spheres. What we have noticed in the last few years is people do not want to spend more on buying heavy equipment. They are more comfortable in hiring them from the guys who possess them and once they complete the work, they give it back to them with some minor wear and tear.

Go online to search for guys willing to rent heavy equipment:-

It may not be easy to hunt for guys who rent their machines to others. Either you should know people who are in the business of renting their machines or you need to hook up with an some one that deals with renting heavy equipment. The next best option is to go online and check sites that deal with renting heavy equipment. These sites may not charge you anything as they ideally bill the guy who gives the machine on rent. So you do not have to bother about the expense part. Just check the equipment they have put online and the rent they are demanding. If possible, try to contact the party and see if they are willing to negotiate and bring the rental down.

Inspect the equipment before taking it on rent:-

Once you have identified the equipment, the next thing you can do is inspect the machine before you sign on the dotted line. Take a mechanic along with you if you are not the person who understand much about the machine and do a thorough inspection. Only if the mechanic is content with the equipment, you should go ahead with the deal.

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Acquire the Service of Ready-mix Concrete by Several Renting Ways

Construction companies are facing the problem of loan rejection by most of the banks and for that reason the budding construction organisations are in stress. To curb out the tension of the industry’s owners, the rental companies are proffering the service of heavy equipment on rental basis. Most of the contractors and the possessors of the construction firms opt for these rental companies because these firms did not ask for any financial documents. But it is essential for the trade owners to go through the leasing agreement carefully before confirming the deal. Ready-mix concrete is the most important heavy equipment in the construction industry. It can be rented from many of the authentic leasing concerns.

Application of Ready-mix Concrete

Ready-mix concrete is contrived in an industrial unit or in a concrete plant. It is a composite material that is created according to the requirements of the respective construction companies. Thereafter it is transported to the work site with the help of in-transit mixer. Some of its benefits in construction sites are as follows:

  • Ready mix concrete is often used in lieu of on-site concrete mixer because of the precision of mixture.
  • It can serve broad vicinity and can be normally placed in industrial zones.
  • In this ready-mix concrete, an enhanced quality of concrete is formed.
  • This concrete is used in attractive-stamped, uncovered and tinted aggregate.
  • It is also utilised in highway footpath for roads and flyovers.
  • This concrete is used in building tunnels, bridges and subways.
  • It helps in maintaining the decorative and architectural quality of the walls.
  • Sometimes these concretes are used in sheathing the optical fibre lines of electric, gas, water, TV cables etc.
  • Some of the concretes are available in lightweight that are especially used for ceiling and flooring purposes.

Types of Leasing Companies for Renting Ready-mix Concrete

  • Vendor leasing concerns provide heavy equipment in rental ground only by the vendor proprietors. Most of the time, the heavy equipment are outsourced by the vendor lessors. These companies charge a major amount for nonconformity returns and the returns are processed individually.
  • Independent leasing companies purchase heavy equipment from the reputed manufacturers by taking a loan from the bank and then provide the equipment in lease to the construction industry. The possession of the equipment is mostly attained by the independent leasing companies and banks are not responsible for bearing any storage or maintenance cost. These renting companies also proffer low-value equipment to the construction industries. Therefore sometimes, the contracts of these leasing companies are considered as of high risk to the clients.
  • There are many banks that provide construction heavy equipment on rental basis. Though banks charge a high interest rate but the capital cost claimed by the banks is comparatively low from other leasing companies.

It’s true that selection of correct renting company from the crowd is a frantic task but the apt selection of renting concern satisfies the construction companies by accomplishing their project successfully.

Advantages and Tips of Leasing Heavy Equipment for Construction and Mining Projects

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These days leasing of heavy equipment is considered to be a money saving option without compromising on the quality of the equipment. Both for short term and long-term purposes leasing can be the best option for the contractors and project managers in the construction or mining site. It has numerous benefits and advantages. Some of the outstanding benefits of leasing are as follows:

Leasing is cheap: If you don’t have adequate capital for spending then leasing is an excellent option. It will help you to get the heavy equipment you want. In case you need to upgrade your existing heavy equipment for an upcoming construction project you may need to spend hundred and thousand of dollars from the bank. If you consider leasing the equipment it can be cheap and less expensive.

 Saves capital for future:  It is not a shrewd idea to invest massive capital in purchasing new equipment. You need to save your precious money for unforeseen emergencies, economic downturn or in case of recession in the construction sector. Leasing is the best method of preserving money for future use and put together your capital for other activities. You need to make monthly payments for leasing a heavy machine or equipment for construction. You can avail small business credit from banks for financial assistance. So it is hassle free and helps you in preventing exhaustion of your cash.

Equipment leasing is also beneficial in cutting down operational expenses of the heavy equipments and finishing all the construction projects in stipulated time.

Helps in saving taxes: Under section 179 leasing gives you reduction up to $50,000.You need to discuss this matter with your tax consultant to avail this benefit. Your construction equipment you have taken for lease must come under this section so that you can avail tax benefit.

Tips of Leasing Heavy Equipment for Construction and Mining Projects

 

Research on which equipment you need: Compare the various kinds, brands, dimensions and models online to land with the best equipment. Research is important, as it will give you information on the various leasing or rental companies that provide tractors, scrapers, excavators, loaders, bulldozers etc.

Figure out how much time is needed to hire the equipment. The time period of renting heavy equipment spans from day by day, weekly, and monthly basis. So get to know in how much time you will get the equipments for hiring.

Use websites like RentItToday or Equiprent to find the least possible prices of renting equipments: They present leasing quotes free of costs for the heavy equipment you require. Apart from these websites you can get information from the Yellow Pages or use Google for searching.

Give back the equipment in time and in good state to avoid extra fees: Make sure you return the equipment in top condition without slightest damage.

To sum up leasing and renting a heavy equipment can be a daunting task but hiring it is beneficial for both small and big contractors in many ways.

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Advantages of renting heavy equipment

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The constructional and industrial companies should decide very carefully whether to buy or rent heavy equipment. Sometimes, renting the equipment can be more beneficial to buying the equipment. If you too planning for getting equipment, first consider for what purpose you are going to use it. This consideration will help you to decide whether you should buy or lease the equipment. Undoubtedly renting the equipment has some major advantages. Some of those advantages are given below.

Advantages of renting heavy equipment

The growing sectors of industries are becoming busy with heavy constructional works. They don’t want to spend much money on getting the equipment while at the same time not ready to compromise with the quality. Here comes the idea of renting the equipment.

  • If you are leasing a heavy equipment, you will not be burdened with the job of maintaining it regularly. Though there are some heavy equipment which require a bit maintenance through routine testing. But, in case of renting, it is the renting company which is going to do this task for you. This will enable you to schedule your work properly without investing any time and money in maintenance of the equipment.
  • One important aspect of the machine ownership which most of the companies don’t consider before purchasing is the storage facility. They left the equipment in open spaces which ultimately lead to the damage of the equipment. When the person is opting for renting the equipment, he doesn’t need have to spend much money in creating a storage building or renting it. It is the duty of the renting company to manage a space for storing the equipment properly.
  • Another great advantage of leasing the equipment is the transportation facility. Suppose, your working place is far away from your equipment storing room, then transporting the equipment to the worksite can be time consuming, expensive and tiresome. In such a case, most of the people hire a third –party company to transport the equipment. Too much complicated, right? If you opt for renting, the company will provide you with transportation of the equipment without any extra charges to the worksite.
  • The most common thread which unites all the operational advantages to leasing is the reduction in labour costs and time. The hidden costs of purchasing the equipment often make it very difficult. If you are deciding to rent the equipment, go on because it is economic too. No additional costs are required to upkeep the machine in case of leasing it. Sometimes, the companies have to set up complete divisions only for proper handling of the logistics and support their equipment.

If you have low budget and cannot afford to buy the equipment, you should kick on for leasing it. Look for the company which will offer you a well-stocked and maintained fleet of heavy constructional equipment. The company should also provide you with top-notch quality service. So, go ahead and get your equipment type on leasing and start the construction business.

Why Renting Heavy Equipment Is Better Than Selling It Off

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There is a saying in China that every morning the skyline of China changes. The same is the scenario with the rest of the world. With so many constructions taking place every day, the heavy construction equipment is always in need. Whenever there is a construction taking place, there will be a need for construction equipment.  THESE ARE EXAMPLES OF A CONSTRUCTION DEVELOPMENT OR EXCAVATING CONTRACTOR THAT CAN DO.

Whether it is the making of a new building or a landing scrip or a highway, when there is a construction, the construction company will need either an excavator or a bulldozer or any other construction equipment of the same genre. If you are an owner of a construction company, this is the golden time to make a huge lot of money.

  • Buying construction equipment has become such an expensive job that it is quite difficult for any construction company or an individual owner to buy such equipment. Therefore, there is a constant need for equipment that can be availed at an affordable and reasonable cost. If you have such construction equipment, then you can give it for a rent.
  • Buying new heavy construction equipment is always quite expensive for the owners. Many times the requirement is for a short time. In such a case, they are always in need for the equipment that can be rented for some time. If you have heavy construction equipment that you do not require, then you can give it for a rent to these people, and earn a lot of money.
  • Many people do not prefer to buy heavy construction equipment due to its maintenance problems. Keeping construction equipment needs a very careful attention. Cleaning it and repairing it whenever there is damage, makes it quite problematic after a hectic and strenuous day of work. To avoid such difficulties, the construction companies and other individuals who require the equipment for some time, prefer to rent it. If you are an owner of such products, and do not require them, then rather than selling them, if you put it for rent instead, you can utilize it without any extra attention.
  • Sometimes, there is a shortage of heavy construction equipment in the market. In such a situation, if you give your construction equipment for rent, then you will definitely be a gainer. Never think of selling your equipment in such a situation to get a bulk amount at a time, think of the constant income that you can easily get when you have the equipment to give for rent.

Most of the people do the mistake of selling their heavy construction equipment when their job is done. They think that it is of no use to keep it occupying a large area in the workshop. But if you consider these above factors then you will know the advantages of giving your equipment for a rent rather than selling it. You can try this trick by investing on the equipment for once and make it a business as well.

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Types of renting heavy equipment

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Most of the equipment manufacturers have an affiliated renting company. It permits them to assist their customer’s monetary transactions quite easily.

There are three main types of renting- finance renting, operating renting and contract hire.

Types of renting

  • Finance leasing: – It is also known as full payout lease. This kind of leasing or renting helps you to get all the financial advantages and risks without any legal title. This renting rate is calculated to get the total value of the asset including finance costs during the contract time period. The asset is handover to a third party at the end of the renting period. Here, you can get a lion’s share in the proceeding sales. This can happen only if the renting period is not extended. You cannot become the owner of the equipment at anytime, unless you go for a private arrangement with the third party. As you can extend your renting contract period and already have paid almost the full amount during the initial phase, so you have to pay very little during the later extended period of the contract. It is sometimes referred to as “papercorn rental”.
  • Operating lease: – Unlike financial leasing, operating renting is like a regular rental. It comes with a smaller time period. The renter here tries either to sell the equipment in a second-hand market or to rent it again to avoid the need to regain the total asset price by the regular lease payments. There may be a choice for elongating the renting span at the end of the initial rental phase. Just like the financial renting, you cannot become the owner of the equipment at any point of the time. But, contrary to financial leases, you will not get a single penny in the sales procedure.
  • Contract Hire: – It is another kind of operating lease which involves a lot of services such as management, maintenance or replacement if the equipment needs to be repaired.
  • Hire purchase:- In this kind of leasing agreement, you will get an option to purchase the equipment. They will confer the legal title to you when you have cleared al the payments. The term of a hire purchase should be notably shorter than the working life of the equipment. As you have bought the machine outright, you can easily claim capital allowances from the renting company to make as much profit from it as you can. Hire purchase agreements are written especially for domestic users only. Business owners can avail this type of renting.

 

It is very important for you to count on your future needs. Every kind of renting option has its own merits and demerits. It will have an everlasting effect on your monthly payments. The renting payment heavily depends upon the total value of the equipment, rate of interest and duration of the renting.

If you have any query regarding the procedure of renting and its terms and conditions, then you should immediately seek the help of your advisor for further assessment.

What are the Operational advantages of renting heavy equipment?

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Manufacturers of construction equipments have noticed the fact that the big economic environment is changing its gear to the renting of heavy equipment. As most of the construction companies are now busy with their work, that’s why they don’t want to spend much time and money in buying the equipment. Renting has many advantages which are discussed below:

Operational advantages

    • Extra-capacity:- To the companies who have already made up their mind of buying heavy equipment, renting the equipment plays the key role. This role mainly includes putting extra-capacity on an as-needed basis. It is very common for particular projects to put demands on the resources which go beyond the routine operations. That’s why, the company which has multiple units of that equipment also thinks to ramp up their abilities with additional equipments to get the job done in an efficient manner. Equipment rental equip the company with some additional means to get their jobs done in a better way as compared to other general units.
    • Fair play: – The quality of resources is the biggest factor which makes the big companies stands out from the small ones. A big construction business can afford the high-end equipment models with the trendy whistles and bells. But, a smaller company is compelled to manage with the more sluggish equipment for a long time. Renting generates a fair play giving opportunity to the smaller companies to get the top-level equipment. This helps the smaller companies to complete their work within the deadline and that too in an absolute manner.
  • Renting before owing: – Before going to purchase equipment, you should use it by renting it. This renting of heavy machine will enable you and your employee to get familiar with it. It is very important because ultimately when you buy that machine you can easily handle it at that time.
  • Service: – The main advantage of renting over buying is the outstanding support and assistance servicegiven to the company. The equipment rental staffs know how to manage the equipment. They also provide you with the tutorial classes on how to handle the equipment safely and effectively. They can easily solve all the problems related with the equipment.

 

Nowadays, large rental companies offer web-based programmes that allow the customers to rent and call off the constructional equipment, track rental fleet inventory and invoices of the review. This financial management online tool gives an additional budgeting tool which enables the contractors to have better control on costs of rental machines.

If you decide to rent equipment, you should look for the long-term impact of buying the equipment on your company’s balance sheet and operations to determine whether the utilization price is enough to justify the ownership. If the utilization price and ownership costs are not considerably less expensive, then the best thing for you is to rent the heavy equipment.

But don’t forget to read all the terms and conditions of the renting company before signing in any contract paper.

How to reduce risk by renting heavy equipment?

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Owners of construction industries are aware of the impact of economic decline on their businesses. Many of them have evolved a new appraisal for gripping money in their hands. They have started to explore strategies of risk management with a fresh vigour. In this competitive world, it is very important to rent equipment as one of the important strategy of risk management. It has both money and risk management advantages.

The construction industries have intensely fixed ownership culture regarding heavy constructional equipment. However, there are some advantages of leasing the machines which is almost same to all spheres of construction industry, irrespective of the type of equipment.

Renting mitigates asset risks

Renting minimises asset risks such as high maintenance cost. Bulldozing equipment requires maintenance. As the time passes, it faces much wear and tear. This increases the maintenance cost and repairing time of the equipment. This increased time and cost results in delaying of the project fulfilment. This delaying is a very big problem for the industries who are trying to maximize their crew. Renting assures that equipment stays first hand. Therefore, the money and time spent on its maintenance can be minimised significantly.

Apart from the maintenance of the equipment, businesses which buy the equipment straight away are responsible enough for ensuring that the purchasing is in compliance with appropriate regulations. The regular upgrading of the new equipment helps to keep up with the latest regulations.

Reselling of the construction machines is another important factor that constantly bothers the owners when they own such a machine. Sometimes, the owner should consider selling the older machine and decide what to do with it can be intimidating. There are very few companies who have right price to sell it in the market. Renting permits business owners to turn the machine in at the edge of the lease-period and move-on smoothly.

Use of Equipment management

As most of the entrepreneurs know that the monthly cost of renting the heavy equipment is really very expensive. If you want to go for purchasing new equipment for a particular project which will lasts for 2-3 years and which you are not going to use after that initial period, then it is not worth buying it. In fact, renting allows an owner to match the particular equipment’s usage with the deadline of the project. After that only, he should add that expense into its tender.

Your construction business relies on a variety of equipment to operate. Renting heavy equipment is a smart choice because the entire lease payment can be claimed as a tax deduction. If you want to rent the machine from an online company, then you only have to fill an online application form and submit it. After that they will give you a call for the further processing of your request. Or, you can directly give them a call so that you can visit the company physically. So, make your business bigger by renting heavy equipment.

 

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Renting Heavy Equipment Is No Longer a Lucrative Option- Taking a Look at the Probable Reasons

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Heavy equipment have always been an integral part of the construction industry. It is impossible to be in the construction arena and not get involved with the heavy equipment. And if that is so, then you must be aware of the rising debate between renting of heavy equipment and buying brand new ones.

Renting Vs Buying Heavy Equipment

It is often seen that people involved in construction face a dilemmatic situation wherein, they are unable to decide if renting heavy construction equipment would be a more lucrative option or investing in a brand new one would be better. To look at it, both the deals have their own set of pros and cons that needs to be considered. While renting heavy equipment for a short period of time is quite a good option, buying brand new equipment is better if you are looking for long term utility. Finances are also another factor involved in the whole thing. While renting heavy equipment may seem to be a cheaper alternative in the long run, there is no denying the fact that the overall experience is quite high.

Why Renting Heavy Equipment Is No More A Lucrative Option?

Start up construction companies and even established construction companies have always considered renting heavy equipment a more lucrative option over investing in brand new ones. Things have, however, undergone a change- renting is no longer that lucrative an alternative as it used to be. Let us peek at the reasons as to why this is so?

  • The first aspect in the renting of heavy equipment that one needs to consider is the economic aspect of the entire affair. Renting heavy equipment over purchasing a brand new one may seem to be economically lucrative initially, but with the passage of time, it tends to get more expensive. You have to constantly pay for using the machine and as a result the overall expense goes up by a considerable amount.
  • If you invest in brand new heavy equipment, then you will have the liberty of using it as and when you wish to. However, if you opt for rental equipment, you have to depend on the rental house renting out the heavy equipment.
  • Maintenance becomes another key issue in the entire renting procedure. If the heavy equipment suffer any kind of damage during its rental period, then you will have to pay for the damage done and therefore, comes about an unwanted hike in the expenses.
  • There is also the fact that the rented heavy equipment has been operated by multiple operators and as a result, there is always a question mark with regard to the working condition of the equipment.

Along with all of the above factors, there is also the fact that in times of need, construction companies are left with no alternative other than to rent heavy equipment, even if it comes at a price far exceeding its limits. It is, therefore, not at all surprising that the business of renting out heavy equipment is slowly becoming an option less opted for.

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