According to experienced rental supplier, Aggreko, many companies choose to purchase generators when they require power for short-term situations.
However, the purchase of generators includes a host of added costs that are not immediately obvious. Spare parts for the equipment need to be purchased and stored, as well as consumables, such as oil. When generators are housed in different locations, logistical problems occur as companies attempt to ensure that equipment is regularly serviced, and that spare parts and consumables are readily available for all project sites. Refuelling is an additional cost which is often forgotten when the decision is made to buy equipment. In addition, a company purchasing generators must be prepared to hire and train specialised engineers to ensure that the machines are kept in good working order.


Free up capital
Another one of the major benefits of renting is that it avoids the need for large capital expenditure. When a company chooses to buy, they must pay the full cost of the asset up front or pay a large down payment for the loan out of their operating funds, which can affect available lines of credit and impact cash flow. Renting frees up working capital for more profitable uses without increasing the company’s debt ratio.


Power more quickly
The decision between purchasing a power system or renting it depends largely on the urgency of finding a solution to the power problem faced, and the length of time the power solution will be needed for. Renting allows for a quick response as the need for power arises. With minimal documentation, a company can quickly have the equipment they need in operation. Finally, in choosing to rent instead of purchase, uncertainties and risks about equipment ownership are transferred to the rental service provider, which allows the customer to concentrate on using the rented equipment as a productive part of their business. In addition, a company need not be concerned about having the latest equipment. The service provider guarantees the availability of the most up-to-date and well-maintained equipment.

“The risk of purchasing equipment is that it can become obsolete as technology improves. Renting allows the acquisition of equipment that is needed today and the ability to use it cost-effectively until it no longer meets the customer’s needs, and then upgrade without dealing with the outdated and obsolete. The customer has the freedom to change the equipment as and when their business needs to change.”


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