Most equipment financing companies provide an opportunity for businesses to either purchase a piece of equipment outright, lease for long-term periods, or rent for short-term periods. Equipment rental is commonly explored by businesses that have no long-term operational needs for equipment or businesses that consider renting a better financial option.
The rental subscription model offers a working solution for businesses to have access to different equipment financing options. Some financing companies using the renting software give businesses the flexibility to pay for equipment rental subscriptions on a monthly or annual basis. There are also rental subscription services that offer discounts and perks that make it an attractive option to businesses especially small and medium scale businesses with competing cashflow needs.
Subscription tiers are sometimes offered by rental companies, different pieces of equipment are grouped and offered as a rental package. This way businesses subscribe to rent any of the assets in a particular subscription tier. Usually, subscription rates and terms may vary across different subscription tiers.
There are several reasons why businesses opt for equipment rental rather than a long-term lease or even equipment purchase through cash payment or an asset financing loan. The decision to rent equipment may be as a result of a single factor or a combination of some of the factors below.
Financial Costs: Sometimes, renting a piece of equipment may be a better financial option for businesses. The financial implication of purchasing a piece of equipment goes beyond the actual cost of purchase, it also includes other related costs such as repairs, maintenance, and insurance. As such, it is important to capture the total costs of owning equipment versus renting or leasing. The financial impact of equipment rental is a key consideration, especially when it concerns the current financial situation of a business. Businesses evaluate their equipment financing decisions based on cash availability, accumulated rental fees, total leasing costs, etc. For the most part, businesses drift towards the best cost-benefit solution.
Operational need: An equipment financing decision needs to align with business needs as well as any short and long-term operational strategies. Equipment rental may be more suitable for a short-term project or operational need. Additionally, businesses may be looking to fill in for out-of-service equipment and decide to rent until they get their equipment running again. Businesses may also consider the advantages of having equipment ready and on stand-by when needed as opposed to being dependent on rented equipment that may not be readily available.
Asset management: Renting equipment is usually explored by businesses that do not want to take on the hassle of maintaining, repairing, and storing equipment, especially heavy-duty equipment. Equipment management requires substantial effort to ensure that there are no emergencies and there are insurance plans in place to cover any equipment damage.
The equipment rental process has a lot of steps and for the most part, automating the process helps businesses achieve much more with fewer resources. Some benefits of utilizing effective equipment rental software can include better customer experience, enhanced productivity, and higher chances for operational success.
Here are a few ways that utilizing effective equipment renting software can make the renting process more efficient:
Equipment servicing and maintenance: Automating the equipment maintenance process helps eliminate manual processes of recording and monitoring asset maintenance. A working database can enhance the identification steps necessary to put rental equipment up for periodic maintenance. This promotes proactiveness and inevitably mitigates equipment breakdown.
Equipment logistics: A rental software can help with inventory and asset management, this includes logistics and tracking of equipment at any given time. An automated system can locate equipment in storage, aid the creation of reports and track the transportation of equipment.
Asset database and automation: Database management is important for rental businesses. A rental subscription model software drives a robust and easy database system where data and information about rentals, rates, fees, users, rental costs, amongst other important business data can be sorted and monitored securely.
Contract management: An equipment rental business deals with numerous customers and using a rental subscription model requires accurate recording and monitoring of contract agreements. Typically, manual processes of contract initiation, documentation and management end up being tedious and time consuming, a manual process could also result in errors and inaccuracies. Hence, using effective software provides a means to optimize the process of equipment rental and a rental subscription model.
Customer management: A successful equipment rental management system focuses on the entire customer experience. Using a system that aids effective communication and handling of customers’ inquiries can help ease the entire rental process. Customers want to know that they can easily communicate with a financing company, put in rental requests and provide feedback on any rental issues.
Using a reliable software for a rental business drives productivity, efficiency, and even financial performance. The equipment financing industry promotes sustainability through refurbishment and reuse of assets. As shown in this report, sustainability when combined with digital technologies can unlock value strategies for operational success and growth.
More so, a digitalization transformation can be beneficial for equipment rental companies that utilize the renting subscription model.
A reliable software will enhance pricing, system integration, customer engagement, and rental fulfillment. Accounting processes such as invoicing and payments, revenue recognition, asset schedules, amongst others, can also be enhanced and linked to other business systems when digitalized. Equipment rental businesses can benefit from adopting technology solutions that transform business processes and operations.
The Utina software is an all-in-one solution for your rental business needs. The renting software effectively supports the renting subscription model by allowing your business to initiate customer enrollment, carry out vendor management and effectively monitor contractual rental agreements. Through the Utina platform, your rental business can implement pricing strategies and track performance across all rental contracts. Customer satisfaction is a core value of our technology-driven solutions and the Utina team is always available to ensure your business has a seamless experience.
