Large-scale recycling is common for many industries, especially in manufacturing. Being able to recycle your waste is not only good for the environment, it also helps recover and re-use resources which save the company money in the long run. However, each company has to make a decision whether they would like to buy their own recycling machinery and operate in-house, lease, or rent instead. There are different benefits to each option which will be further discussed below.
Leasing
This option allows the company to make use of the machinery for a specific amount of time according to the contract signed. Since there is a leasing contract, both parties are bound to honour the terms and are prohibited to make any sudden changes. In a way, this protects both parties. Aside from this, there are additional benefits to leasing:
- When you lease recycling machinery, you have the option to choose from the latest equipment on offer. With updated equipment, you are guaranteed better efficiency at an affordable price.
- Since you will be paying a specific amount, it is easy to be factored into the company budget. There are no unexpected fees for maintenance or repairs.
- The usual term for leasing is that you will not be required to pay an upfront amount until you have completed using the equipment. This allows you the flexibility of making sure that you are able to garnish the funds without affecting the budget of the company.
Leasing may not be for everyone which is why it is best to consider options such as renting and buying your own equipment.
Renting
The primary difference between renting and leasing is that renting is usually set for a shorter amount of time. Recyclingmachinery.net is an example of a company that gives clients different options depending on their needs. One of the most notable benefits of renting is that you don’t need a large capital sum to gain access to state-of-the-art recycling machinery. You can rent for shorter periods of time according to how much your company can afford.
Companies that prefer renting also appreciate the fact that rental fees are tax deductible. Another benefit is that the rental company will take responsibility for the delivery, set-up, and upkeep of the equipment.
Buying
The last option is to consider buying your own machinery. If the company has a large budget that they are willing to invest in their own recycling equipment, then this choice makes absolute sense. First, if you own the machinery, you control the use without having to comply with rental or lease agreements. You can use the equipment anytime, and as conveniently as needed. Another benefit is that some of the upfront cost of buying recycling machinery can be recovered as a tax-deductible expense.
In conclusion, the choice of whether to buy, rent, or lease depends on the unique needs of the company. There are several factors to consider, with importance on how the acquisition of recycling machinery impacts the company’s long-term operational expenses.
