Why it’s smart to hire in today’s volatile market
We all know the past 18 months have been tough. Not only do contractors have to deal with the regular challenges of running a business, but throw COVID-19 into the mix and we’ve suddenly got a host of extra challenges to contend with.
From extra hygiene procedures to full-blown stop work orders, it’s hard to know what’s around the next corner.
But of course – work still has to carry on. Roads need repairing, hospitals need building, and infrastructure projects can’t be left half-done.
That’s why so many contractors are choosing to hire in order to help their cash flow and complete projects in the immediate term, without having to weigh up big long-term decisions like buying new equipment.
1. Beat uncertainty with long term equipment hire
Hiring earthmoving equipment is a scaleable way to approach large contracts or projects, meeting your equipment needs without a huge capital outlay. It’s simple to get the machines you need on-site, fast, and return them when they are no longer needed.
Renting equipment gives you flexibility in the short term, expanding your fleet without extensive investment.
2. Avoid admin hassles and depreciating assets
Buying new earthmoving equipment isn’t just a large capital investment, it also carries a longer term legacy where the machinery has to be depreciated over a number of years.
With hire, you can skip the accounting hassles and simply pay for what you need, avoiding the ongoing financial and physical maintenance of the equipment.
3. Free up capital without slowing down your projects
Hire-to-buy options are ideal for contractors that are considering buying equipment but want to free up capital in the short term.
If circumstances change suddenly or you’re not 100% ready to buy, you can hire a machine to cover your short term needs now. Then, if the job is extended or you land a big tender, you can buy it with favourable terms and still reap the tax benefits from the hire period.
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