Businesses large and small have all had to deal with the headache of sourcing equipment for permanent or temporary use. Whether you’re just starting out or you’ve been in the game for quite some time, equipment sourcing will (at some point) sneak up and bite you in the butt. Sure, you could buy equipment, but why spend hundreds, thousands, or even hundreds of thousands of dollars on equipment when you could rent or lease it for a FRACTION of the price?
That’s where we come in. KWIPPED is an equipment rental marketplace for businesses just like yours! We have assembled a global network of suppliers from 28 unique industries, including 500 product categories, who rent equipment. We rent everything from laboratory equipment, to AV & film equipment, to farming equipment.
In our experience, we have found that the most common issue a KWIPPED renter grapples with is deciding whether to rent or purchase. Most will instinctively rely on simple financial analysis to aid in the decision, but often overlook other important factors.
Here are 32 reasons you should rent equipment instead of purchasing it!
You need equipment in different locations.
Let’s say you are a traveling circus. Would you rather transport your heavy equipment from city to city, country to country, or would you rather have it conveniently arrive at your performance location unpacked and ready to go? If you were to transport it yourself, you’d also have to have some method of transportation, like a truck or a trailer, at the ready, and you’d need extra people on hand to drive the truck/trailer and unload and load it. That’s not only a logistical headache, but it could be a financial one as well. Renting equipment allows you the financial and logistical convenience of having the supplier ship the equipment to you, whether you’re in Cameroon or Kalamazoo.
2. You want the latest technology
When you purchase an ultrasound, you’re spending upwards of $20,000 for something that you would ultimately like to keep for the longest amount of time, so as to avoid spending $20,000 in another year or two. But what if another model comes out, with more features and technology than the one you just purchased? Renting equipment allows the user to frequently change or update the equipment to the newest model. This is particularly great if your business has high-net-worth competitors, who can actually afford to purchase those newer machines every year or so. Because you rent your equipment, you have a competitive edge, and you’re saving money!
3. You do not have the resources to repair or maintain the equipment
Who do you call when your machine breaks? Can you afford to fix it if your machine breaks? Do you have maintenance or repair staff in your business or do you need to outsource that work? If you answered “no” or “I don’t know” to either of those questions, you should probably be renting. Rentals are repaired and maintained by the supplier, so you won’t have to worry about those costs or doing the legwork to find someone to maintain or repair it!
4. The cost of maintenance is too high
Remember that time you were seventeen and totaled your car? You don’t? Oh, well maybe that was just me. Anyways, when you total a car, it means that the cost of repairing your vehicle is more than the value of your vehicle. What if the cost of maintaining and repairing your equipment is more than (or just as much as) the cost of your equipment? That’s not cost effective, nor does it help you achieve the purpose of using your equipment: producing revenue for or improving your business. With rentals, you won’t have to worry about maintenance and repairs, as those are handled by your supplier.
5. You require operators or a service from the rental company to use the equipment
When you purchase equipment, you may not necessarily have a trained professional on hand who is completely well-versed in that particular product. For instance, if you want to rent an underground boring camera for your mining company but none of your employees (or you) know how to use it, you have essentially wasted money because you’ll now have to waste time to learn how to use it. When you rent, you have access to trained professionals who are knowledgable not only about the type of equipment, but that specific piece, They’re able to tell you which buttons do what, what settings are optimal, and how to best calibrate that piece for optimal use. Plus, when you rent through KWIPPED, you can stay in contact with your supplier throughout the duration of your rental if you have any questions or need clarification on using your specific equipment!
6. The equipment is being used for an experimental line of business with an uncertain long-term outlook
What if you’re running a clinical trial? What if you’re a restaurant owner who wants to try out a new menu item that requires a specialized piece of equipment, but you’re not sure how well it will sell? Through renting, you’re able to experiment in new industries, discover new findings, and dabble in new projects without a long-term financial commitment to your equipment or project.
7. You want to trial the equipment to make sure it suits your application before you purchase
Picture this: You just purchased a new x-ray for your mobile dentistry unit. It comes in the mail, you open it up, and on top of the machine there’s a big warning that says, “WARNING: NOT FOR USE WITH PORTABLE TRAILERS”. That’s a bummer. If you rent the equipment through KWIPPED, you can actually choose to rent on a very short term basis, sometimes for only a day if you’d like, and experiment with different machines, makes and models until you find one that you like the best! When you do find the one you like, you can easily extend your rental at any time, and KWIPPED staff will contact you to remind you when your rental is nearing an end and ask if you’d like to extend it, so you won’t have to worry about keeping on top of your rental end dates.
8. You can pass the cost of the rental onto your customer
When you purchase an expensive piece of equipment, it may take months or even years if you’re a small business for your equipment to pay for itself in revenue. However, if you rent equipment, your equipment can pay for itself in just ONE PROJECT. If you quote your client $3,000 to complete a project and you’re renting a piece of equipment for $200 a month and you use it for that project, you’ve already paid for that equipment through the completion of the project. Even better, you can include the cost of your rental in service quotes you send out to your own customers, effectively financing your equipment needs!
9. You want access to a wide variety of equipment solutions
If you run a business that uses a wide variety of equipment, why not come to one place to get all of it? KWIPPED has just about every piece of equipment you can think of, and our categories and equipment numbers are growing every day. For example, let’s say you want 7 different pieces of equipment. Instead of communicating with 7 individual companies in each of these industries, filling out 7 rental agreements, negotiating back and forth on 7 different contracts, and deciphering 7 different shipping, insurance, and replacement terms, you can just go to KWIPPED. We have a standardized rental agreement so you won’t have to reinvent the wheel every time you rent a piece of equipment. Plus, you can compare quotes to make sure that you’re getting the absolute best deal!
10. You need to preserve operating capital
When you purchase a piece of equipment that is $150,000, you no longer have $150,000 in operating capital to spend on other things that your business might need. However, renting allows you to pay a little at a time, preserving your precious operating capital for other important business purchases! So go ahead, hire more people! Buy that custom sign for your business! You can actually afford to do so when you rent.
11. You have to mitigate equipment usage cycles
If your business operates on a cyclical or seasonal basis, it might be important for your equipment to align with it’s usage cycle to get the best bang for your buck. If the equipment gets used from May-September but sits in a shed for the rest of the year, you’re not getting the most out of that equipment, as its usage cycle doesn’t align with your business needs. Say you’re an ice cream shop in a beach town, and you might close in the winter due to the lack of tourists, or the fact that you sell, well, icy cold treats. When you rent the equipment, you can just send it back at the end of your season or business cycle, effectively aligning your usage cycle and saving you money by only paying for the equipment when you’re using it!
12. You don’t have storage facilities for the equipment
We get it. Not every business owner has a 10,000 square foot warehouse in which to keep all of their equipment. With KWIPPED rentals, you only use the equipment for as long as you need it or as long as you have somewhere to store it. This is great for seasonal businesses as well, as you don’t have to find and pay for a storage unit to store your equipment until your next profitable season.
13. You know the exact cost of the equipment to your business and do not have to allocate costs associated with depreciation, maintenance, facilities, labor, repair, transportation, calibration, and other expenses of owned equipment
If accounting and finance is something you aren’t a professional at, rentals are ideal for you. You have one set cost for the rental, and that’s it. You won’t have to calculate depreciation, consider maintenance or any other “associated costs”. All you need to worry about it is the actual price you pay for the equipment per month, and the suppliers worry about those other annoying numbers.
14. You do not have the time or means to sell purchased equipment at the end of it’s useful life
Do you know why so many people put “FREE MATTRESS” postings on the internet? Because they really really really don’t want to have to find a buyer, move them, and do the legwork themselves.
At larger companies, purchasing is handled by a specific person, or sometimes, an entire department. Small businesses often purchase equipment through their salespeople or even their owners. But how many companies do you know that have a department or person dedicated to getting rid of old equipment? Not many. Salespeople know that it’s a full-time job to find the right buyer, in the right place at the right time. It can be especially hard to sell equipment when your model isn’t the newest or shiniest, or if you want to make a decent profit on it. If you rent your equipment, you don’t have to worry about what to do with it when you’re done using it; you just send it back to the supplier and they figure it out!
15. Owned equipment becomes obsolete with no market for used equipment at the end of it’s useful life
The problem with purchasing, especially expensive, equipment is depreciation. When you’ve reached the end of usable life of your piece of equipment, your equipment has no value. Now what? You spent all this money on your equipment only for it to become obsolete at the end of its usage. Renting gives you the freedom to simply end the rental when you are finished using the equipment, and you don’t have to worry about the upfront cost or depreciation of the equipment.
16. You are assured the best equipment for the job
KWIPPED staff personally qualifies every rental to ensure that you are getting the absolute best piece of equipment for your project, job, or business. They’ll take note of your needs, ask you questions about your specific usage of the equipment, and shoot that information out to our network of suppliers who will recommend the best possible solution for you. If that’s not enough, you can message directly with suppliers through our platform to ensure that you are getting advice directly from equipment experts on usage, application, and industry competition to ensure that you have the best deal!
17. You don’t have to pay any property tax
If you don’t own it, you don’t have to pay property tax on it. Fair and simple.
18. You will have a lower assets to liabilities ratio which increases your borrowing power
Oh accounting. Everyone’s favorite subject, right? Not really. Anyways, it’s important as a business owner to have more money than you owe, as it increases your chances to get a competitive loan to improve your business. Purchasing equipment, while it may sometimes be payable via a payment plan or financing, is often a cost that business owners will need to pay large sums upfront for, often times on a credit card or through loans. This is horrible for your borrowing power and if you miss a payment, it can even be detrimental to your credit. Rentals allow you to pay a little each month for as long as you need the equipment, allowing you to have more money in your pocket and less money owed.
19. Renting is quicker than purchasing and can save you time
Purchasing and sourcing large (or even small) equipment can be a long and arduous process. It could take weeks or even months to get the equipment you need because of the amount of back-and-forth between companies, departments, and you. But what if you need your equipment for a music festival this weekend? KWIPPED suppliers typically return quotes within 24 hours to remain competitive with each other, allowing you to compare quotes, select the best one for your need, and get your job done as quickly as possible!
20. Rental contracts are flexible, short, and absent on long-term commitments
Rental contracts are so much easier to negotiate than purchase contracts. Suppliers of rentals want to move equipment quickly, so they’re willing to work with you on the terms of your contract, shipping, and the length of the rental. Because rentals are so flexible, you can easily extend your rental or cut it short based on your need. Because you don’t own the equipment, you don’t have a long-term commitment to deal with and you can easily switch out models, change suppliers, or use a completely different kind of equipment depending on your need!
21. You will avoid license and registration costs associated with owning
22. Renting offers flexibility to perform projects of various sizes
If you can only do small projects or large projects because of your current equipment capabilities, you’re ultimately losing revenue. Renting allows you to get the equipment you need, when you need it. Let’s say you have a client or a job with a particular need where the cost of purchasing the equipment to fulfill that client or job’s need will outweigh the profit you will make on the project. Obviously, you would have to turn down the client or job, which ultimately helps your competition and causes you to lose revenue opportunities. Renting equipment allows you to get the stuff you need to get the job done, in turn allowing you to accept more jobs and help more of your customers!
23. You can quickly respond to urgent needs or disaster scenarios
Imagine this: you are a school. Your defibrillator stops working. What are you going to do? What if you need it to save a child’s life? You can rent one, and in most cases, get it within a few days. Rentals are great for disaster situations or urgent needs, because unlike purchasing, you won’t need to have as much back and forth with the sales team to get you the best deal. You can just go to KWIPPED, put in one request, and get the best deal by comparing supplier quotes there! We actually wrote a blog post, which you can read here, about how Hurricane Maria caused a massive influx of requests for infusion pump rentals, because of the lack of IV bags at hospitals in Puerto Rico and on the mainland of the United States.
24. Renting allows you to standardize your infrastructure with consistent makes and models.
It can be really expensive to own the same brand, model year, and component parts of every piece of equipment you use in order to ensure operation compatibility and consistency. If you rent one or more pieces of your equipment, you can afford to have the same model, brand and features across all your devices! Plus, it looks super fancy to have everything be the same brand, make and color (at least in our opinion).
25. Renting offers multiple sources of supply, reducing dependency on any one vendor
Because KWIPPED is a marketplace-based platform, you get the best deal! When you submit a Request For Quotes on KWIPPED’s website, our staff shoots your request out to our network of over 700 reputable and trusted equipment suppliers. Those suppliers then return custom quotes to you based on your needs, and you can compare those quotes side-by-side! This is great for business owners, because A) you don’t have to scour the internet looking for the best price on a particular piece of equipment B) most of our suppliers only agree to rent through us, so you would only find their rentals on our website, and C) you don’t have to depend on one supplier to rent you the equipment.
Supplier dependency can be problematic, especially if they don’t have the equipment you need to rent available when you need it. They may also only carry one brand of equipment, or not have the resources to constantly supply you with the newest models of equipment, either.
26. You will be assured all equipment conforms to safety and compliance regulations
When you rent equipment through KWIPPED, you can be sure that your equipment meets the highest operational standards and conforms to all safety and compliance regulations. Because KWIPPED pre-qualifies and vets all of our suppliers before they can become official suppliers, you can be sure that their equipment and level of service meets our strict quality requirements. When you rent from the individual suppliers on the internet, you can’t always be sure that your equipment will arrive in top condition, and that it is safe to use. With KWIPPED, you can be sure that your equipment will arrive meeting all compliance and safety guidelines, and if it isn’t perfect, we’ll issue you a refund.
27. You will reduce insurance expense
When you purchase a piece of equipment, you will need to purchase an insurance policy for that item. When you rent an item, most suppliers charge you a small “insurance fee” included in the cost of your rental, or they don’t charge you one at all if it’s a less expensive item. The main point is that you won’t have to purchase and pay for an insurance policy for the life of that item, as it is covered by the supplier!
28. You will avoid blanket liens that effect other assets
If the IRS places a lien on your assets, whether your business is struggling or you have many pieces of equipment that you are financing, rental equipment does not fall under liens. This means that you can continue to use your equipment to improve your business and eventually even produce enough revenue to help you get those other liens removed!
29. Rent is tax deductible
Many small business owners rely on tax benefits to make their business profitable, let alone operable. The great thing about renting equipment is that it is tax-deductible! This means that you can improve your business and deduct the cost of improving it, saving you even more money in the long run.
30. Renting can offer equipment redundancy for mission critical applications
If you’re using your equipment for a project with a tight-deadline or a project where that piece of equipment is the life-blood of the project, it can be catastrophic and extremely costly when your equipment breaks, malfunctions or your supplier can’t ship it to you in time. When you rent equipment, you have an immediate source for backups if you should need one! Because KWIPPED’s platform aggregates hundreds of suppliers onto one platform, all you need to do is submit a request and then you will have multiple quotes to choose from.
31. Insurance may cover the cost of the rental
In the case of healthcare especially, insurance will typically cover the entire cost of the rental, whereas it won’t cover the cost of the purchase of the equipment. Items like wheelchairs, CPAP machines, and other medical equipment rentals are covered under most insurance plans. In other industries, in the case that your purchased equipment breaks, your insurance company may cover the cost of a rental until you find a new piece of equipment!
32. Rentals may include kits, software or equipment combinations that are not available for purchase
When you purchase equipment, it often comes with a kit or software that is only available to purchase as a package. When you purchase a piece of equipment that doesn’t come with the software or kit, you will need to scramble to find those features separately, especially if it’s an older model and the manufacturer doesn’t make that component anymore. When you rent a piece of equipment, it is mandatory for the supplier to provide the equipment with all the components that it needs to operate at it’s best possible level, which includes software, kits, and sometimes, equipment add-ons.
Whether you’re a small dairy farmer or a huge multi-national biopharmaceutical firm, rentals can prove to be extremely cost effective, and offer numerous other benefits as well! For all your rental needs, use KWIPPED, as it’s the only way to get the best deal from reputable suppliers who know what they’re doing. An added benefit? You only submit one request for what you need, and the suppliers come crawling to you, competing with each other on price, shipping and response time, for your business! It’s the best way to make sure you get your project done on YOUR terms, not someone else’s.
What is your favorite added benefit of renting? Let us know in the comments below!
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