Gareth Jones, managing director, Dawsonrentals Vans, looks at why rental is valuable.
A return to financial stability does wonders for restoring confidence in businesses looking to invest. Companies can now reopen conversations on expanding premises, workforce, training and facilities, which had been put on hold.
However, in order to make room in the budget for the most vital investments, businesses must also assess where costs can be saved through temporary purchases.
This is where the old adage that the rich man buys what generates value and rents what depreciates is particularly useful. If wealth is measured by the number of days the income from your assets can sustain you, and financial independence is achieved when your monthly income from assets exceeds monthly expenses, then it is essential that businesses invest in the assets that will yield the most profitable results.
In terms of limiting excessive expenditure, the first port of call is gauging which depreciating commercial equipment can be rented rather than purchased. This extends to transport, machinery that might be used in the business’s process, and IT solutions.
In the transport rental sector, the opportunities for businesses to make the most of temporary vehicles have been extended to allow for optimum flexibility. Vans can be personalised with company signage, while complementary equipment comes as part of the fixed-term contract.
This reduces the necessity of long-term fleet investment and makes space for prioritised corporate spending.
To nurture meaningful growth throughout a business, substantial investment ought to be reserved for the services that will accumulate value over time: space, staff, skills
If the financial collapse taught business owners anything, it is that companies must cut costs and grow productive output wherever possible, encouraging us to be savvy about how we spend.
So don’t buy something that will only decline in value over time, and embrace renting to ensure prolonged success for your future.