Small businesses have to make decisions carefully because they are at a phase that is considered delicate in the business cycle. They have to choose the best services yet keep their costs low, which is a dilemma few are able to deal with every day. Hiring a forklift truck is one of those decisions a business has to make occasionally, and many people have different ideas on this issue. Some businesses find it beneficial to just buy the machine and others think hiring is the best way to cater for their needs while at the same time keeping their costs low. For both options, there are advantages and disadvantages alike that you should take into account.
Hiring a forklift
The biggest benefit that comes with hiring a forklift truck is that there is no initial investment needed to use the equipment. You don’t even need to worry about maintenance costs and insurance because this is taken care of by the owner. Hiring gives you a service whenever you need it and this ensures you keep costs low. It could sometimes take a long time before you get the need to hire a forklift truck, so weighing these options many people would go for hiring as opposed to owning one. Additionally, hiring gives you a chance to choose from a wide variety of trucks available, so you can get one that best suits your needs.
Despite the benefits that come with hiring a forklift, there are also downsides. First, you don’t own the truck, which means you can only use it if you have the money to pay hiring costs. You cannot have it any time you want because you have to follow the booking process. This also means you could find it difficult to access assistance in case of an emergency. If there are tasks that require that you make modifications to the truck, you will sometimes have to pay more to the owner to make these changes.
Buying a forklift
Having looked at the benefits of hiring a forklift, it is also necessary to understand what benefits would come with buying one. First, whenever you buy a forklift truck, you immediately assume ownership, which translates to you having an asset that you can use to secure credit or even perform whatever tasks you want. Nobody can limit your usage of the truck and you can make any modifications you think are necessary to make your work easy.
Additionally, owning a truck keeps your costs low because you don’t need to pay anyone every time you need to use it to complete some tasks. In case of emergencies, you can easily solve the problems encountered because you will always have the truck on standby. As much as many managers think it is a wise idea to just hire, it is also beneficial to own a truck especially if you perform many tasks frequently, which would raise costs of hiring one.
However, there are also demerits of hiring a forklift truck. To acquire the truck, you need to pay a high initial cost, which many small businesses are not likely to have. Some people who buy these trucks opt for a loan, which leaves them with the burden of repaying the loan every month. There are also regular costs of maintenance that you have to pay and insurance that is mandatory. Combined, these costs could be high for a business that is not established yet. It would make more sense if the business uses the truck often and makes more profit from its application. For a business that needs a forklift truck less often, hiring would make more sense.