Name a type of business and you can name an occasion when you’ll need something you don’t have. In tough economic times, buying improvements, capital and equipment may be out of reach.  And yet, you may not be able to do without.  With 20 years experience in the truck and trailer rental business,  Rick F. Whittle, President of Whittle Family of Business, offers these seven advantages for leasing or renting over buying.

1. Short Term Commitment. Sometimes it’s a big advantage to “test the waters” to determine your need for something before you buy. Short term leasing might give you time to learn if that new product will sell, or maybe you just need a little more warehouse space to get you through the busy season.

2. Less Hassle. In most cases rental equipment can be secured in short order with little planning. For example, a rental trailer can be ready to pull off the lot in less than 30 minutes. Buying a trailer can take weeks if you are securing financing.

3. Versatility. You may not know exactly what you need from the start.  For example, if you rent a small trailer and find out a few days into the project it’s not big enough, it can be returned and replaced with a better fit.

4. Realize Tax Advantages. Purchases are made with after tax dollars. Your lease payments are usually considered a pre-tax business expense and as such may reduce your taxes.

5. Start-Up Businesses are Welcome. Start up businesses can have a hard time obtaining financing. Equipment can be rented month to month with automatic payments from a credit card. This will also help build business credit as those on-time payments will be recorded with credit reporting agencies.

6. Less Paperwork. In most cases, a one-page page application is all that’s required for month to month rentals of just about anything. You won’t need financials, tax returns, P&L statements, cash flow predictions, or receivables. Less paperwork frees you up to run your business.

7.  Protection Against Market Conditions. When market conditions require that you downsize, you simply return your rentals for an instant boost to the bottom line.