Should you rent or buy your next piece of equipment? Here are 3 benefits of renting that Bigstone finds important to consider before making your next equipment purchase:
During periods that your business is experiencing increased cash flow, you can extend your assets further, and invest in new technology and products. However, rather than buy outright, it is often ideal to make smaller ongoing payments through a rental scheme. This allows you to maintain healthy cash flow and develop your businesses core assets concurrently.
The rental model allows you to swap and change equipment on a regular basis and the fixed repayments enable you to use technology that you may otherwise not be able to afford. This is a serious economic advantage for companies who rely on having the most up to date technology and equipment.
Rental schemes for your business allow you to claim 100% of the payments as deductions as long as the item is used entirely for your business. While being able to more efficiently manage your finances with regular payments under the rental agreement, you are also contributing towards a smaller base sum because you are only required to pay the cost of the item, without GST attached.*
*All tax advice is of a general nature – you should seek the advice of a qualified accountant before making any decisions