Many businesses in construction fields need an air compressor, but the price can eat into the company budget. Luckily, rent-to-own programs provide a flexible and affordable way to purchase a compressor. Here is a look at the advantages of a rent-to-own option.

Reduce Capital Expenditures

Rent-to-own options help businesses save significant amounts of money on the upfront costs of an air compressor. Buying a compressor outright can cost anywhere from $1,500 to $70,000, depending on the size, power, and features needed. Through a rent-to-own option, businesses can pay a small monthly fee instead.

A small monthly fee frees up a great deal of capital, which can be used for any number of purposes. The extra funds can be put toward purchasing more equipment, hiring more employees, keeping an emergency fund, or almost any other business-related expense.

Invest in High-Quality Equipment

Many businesses, especially those that are starting out, have tight budgets and need to save money wherever they can. So when they purchase their equipment outright, they end up selecting low-quality or used air compressors that aren't as reliable as well-made new ones.

By eliminating the large upfront cost, rent-to-own options allow businesses to purchase higher-quality equipment. And when the cost of a compressor is spread out over several months or years, purchasing a new, high-quality compressor becomes much more affordable.

Rely On a Service Team

Companies that offer rent-to-own options for air compressors usually also provide repair and maintenance services. Thus, businesses know who to call when there's an issue with their air compressor.

Knowing which service provider to call not only saves time because there's no need to search for a provider but also provides a business with peace of mind. Since there's an established relationship through the rent-to-own agreement, business owners know they can trust the advice that's provided.

Build Up Equity in Equipment

Rent-to-own options provide businesses with an opportunity to build up equity in air compressors. As businesses make their monthly payments, a significant portion of the payments goes toward accumulating value in the rented compressor. At a program's completion, the business will own the compressor.

The option to buy the air compressor sets rent-to-own programs apart from regular lease options (which also require small monthly payments). When purchasing a compressor through a rent-to-own program, a business has the option to keep the air compressor once the term of the rental is up. With a normal lease, however, the business has to give the air compressor back once the term has ended.

Avoid Taking Out a Loan

Rent-to-own programs also work differently than loans. Because there is no financing involved, rent-to-own options don't count as borrowed capital, which is good news for those that have little or bad credit history because they don't need to worry about having a loan application rejected.

Businesses also won't need to consider how a rent-to-own option will impact future borrowing opportunities. Because a rent-to-own option doesn't involve a loan, lenders won't factor a rent-to-own program in a business's outstanding debt - one thing that lenders look at when underwriting loans.

Budget More Easily

Rent-to-own options come with fixed monthly payments, which make it much easier for business owners to keep track of their finances. Business owners simply need to include the fixed payment in their financial forecasting. Businesses don't have to worry about interest rates that might change. And unexpected repairs may even be covered depending on how your rent-to-own agreement is written.

If you're interested in a rent-to-own air compressor option for your own business, contact us at West Equipment Co. Inc. to learn more about your air compressor options.