Should You Rent, Lease or Purchase Floor Care Equipment?

Investing in Floor Care Equipment

When you're looking at your company’s bottom line, how is it affected by equipment expenses? Many companies, startups in particular, tend to have a disconnect between expenses and profit margins. All too often they will look to purchase the shiniest, newest equipment possible. Unfortunately, it is sometimes equipment they don’t really need.

Some may argue that they need the equipment in order to complete a specific task and time is of the essence. That may be true. However, haste is the enemy here. It is wiser to take a more methodical approach, assessing the facility and what the task entails, then determine what is actually needed. In some cases, equipment rental works just fine, or leasing for longer term needs. Purchasing equipment, of course, means weighing the cost effectiveness of purchasing vs. leasing.

Here are some things to consider when determining what is right for your company.
 

Renting Floor Care Equipment

You may choose to rent some, or all, of your equipment if you won’t use it frequently. For instance, if you only sweep your parking lot or exterior once a quarter, if you do an extensive spring clean, or if you want to try a piece of equipment before you make a purchase. If you won’t use the equipment very often, then it may be a smarter financial move to rent it when you need it. That will also leave you with room in your budget to purchase the equipment that you will use more regularly and even get upgraded models with more advanced features.
 

Leasing Floor Care Equipment

Leasing your equipment comes with some distinct advantages. While you will not own it and you will pay on it regularly, those payments are a fixed expense that can be easily worked into your budget. You are still responsible for repair and maintenance of the machine, but it is easy to upgrade from one model to another and is great for the company that needs high-performance, quality floor cleaning equipment, but don’t have the capital to purchase it up front.
 

Purchasing Floor Care Equipment

Purchasing your equipment is a good choice if you clean your facility daily. You get a higher tax deduction when you purchase outright, but there are typically higher costs up front and it is more difficult to upgrade. Also, even after you have paid for it all, you are still responsible for the costs for any repairs or maintenance.

In the end, only you can decide if renting, leasing, or purchasing your cleaning equipment is best for your company. Each company has its own unique needs; there is no one size fits all approach. Look at budget and needs, then find the most cost effective, efficient option.