TIMELY DELIVERY

Renting to Ensure Liquidity

Perhaps the one thing that on many projects that is overlooked is the use of Temporary / Rental Equipment required on each project at the time of budgeting. Most estimates are based on the assumption that most tools & equipment are owned by the workshop / company which in most cases, fall short.

Going by the speed of projects in the past decade, one can come to the conclusion on the dismal state of our timekeeping / time management and project acceleration (when required). We have seen over the years many construction companies struggling to pay for foreign workers who are on permanent payrolls of the company and the project possibly has slowed down or done with. The overheads as far as people management is concerned does not stop with he project coming to an end. Some of the companies that have suffered with this problem have actually succumbed to this and are now either in deep debt or out of business.

At the outset, opting for (as far as necessary) temporary facilities / equipment / utilities probably could be the option as there a fair bit of cost and manpower required to maintain the facilities / equipment. In the rental option, your cost / overheads stop the day your project is over thereby freeing up capital to ensure sustainability and longevity of the company itself.

Apart from liquidity / low cost on overheads, the primary reason one can look into hiring is that most equipment available on rent are of higher spec, better quality and better maintained, so the job that the equipment is hired to do, gets done in a relatively more faster time.

WHY RENT?

  1. All Service & Maintenance costs are covered in the cost of Rental. Massive spends on owning a workshop, mechanics, parts inventory or maintaining records are curtailed when the RENT option is taken.
  2. Renting equipment in most cases would give you 24/7 Emergency Services.In the event of a breakdown, if the equipment requires repairs and workshop, this is replaced immediately with a fresh load tested unit when the equipment is rented. What happens when your own equipment breaks down?
  3. We are your warehouse, when you rent from us, so there is no need to have storage worries. You therefore focus more on your core business bringing about positive growth.
  4. Inventory control comes naturally with rented equipment. You have not storage worries.
  5. Renting equipment for short term and long term projects frees up your capital for more profitable use rather than spending on expensive equipment which may sporadically be used once the project is over.
  6. Renting does not show up as a liability on your Balance Sheet, thereby increasing your borrowing capacity keeping the business healthy and more liquid.
  7. Renting means having the most up to date and project specific, relevant equipment always at your fingertips. It also gives the Project Managers to try out equipment before opting to buy in the future.
  8. Use the right equipment for the right job with rented equipment, instead of trying to make do with what you own.
  9. Renting means you pay only for what you need to accomplish the task at hand. Why own huge inventories of idle equipment?
  10. When you are done with the equipment you rented and that specific job is complete, you simply return it. Getting rid of your own equipment is a much more costly and difficult project. Renting gives you accurate cost control.

To find out on how Energia can help you, drop us a line on info@energiaksa.com or call on +966 13 3635476 / 3635476

Leave a Reply

Your email address will not be published. Required fields are marked *