While our rental programs offer many of the same advantages or benefits of lease programs, there are three major distinguishing characteristics of renting:
- The contract period for rental provides complete flexibility with contract periods as brief as a day, week, month, or up to one year. However, it is important to note that as rental terms extend, the economic benefits diminish.
- Rental equipment includes the provision for maintenance unless special provisions are made to the contrary.
- Rental provides an inexpensive means to try a new fabric structure without a long-term commitment. In effect, it is a paid demonstration.
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Leasing your semi-permanent aircraft hangar offers several advantages:
- Leasing can free working capital for other investments while not affecting the customer's borrowing power or credit line. Lease payments may provide a tax deductible business expense, reducing tax liabilities.
- Leasing encourages a more orderly planned inventory replacement cycle, before maintenance costs become excessive.
- Leasing eliminates used inventory disposal problems for the user.
- As a rule, it is usually easier to gain approval for a structure under a lease program than as a capital expenditure.
Some of the biggest advantages of leasing are the opportunity to reduce operating expenses by replacing over-aged inventory without a large capital outlay, the establishment of realistic replacement schedules, and standardization.
Leasing simplifies budgeting, bookkeeping and accounting because it greatly reduces paperwork and administrative requirements. At the same time, records can be enhanced to provide information on inventory utilization and projections for replacement timing. In considering a lease, remember that options may be incorporated into the plan to give users a variety of alternatives at the conclusion of the contract period.
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