With the new year underway, industrial operators across Australia are finalising their 2020 budgets and making sure they've accounted for every possible expense. Whether you're planning on replacing aging equipment or want some breathing room in case machinery breaks down, carving out space for upgrades and replacements is a wise move. But, you may be better off leasing that equipment rather than buying it outright.
Lower upfront costs
Investment in Australian businesses increased during the last fiscal period, reaching $92.1 billion across the country. Among the major investment targets credited with this uptick were improvements to equipment, plants and machinery, according to Business Insider.
That doesn't necessarily mean every industrial operation has funds on hand to make a big purchase – and industrial machinery can be extremely expensive. Cash-strapped businesses may not be able to keep up with the competition and instead rely on aging infrastructure to support core operations. That is a recipe for disaster, as outdated equipment needs to be aged out of use before it malfunctions or breaks down. Machinery failure could derail site productivity and put worker safety at risk.
Leasing equipment is a much more affordable option, stretching out payments over several years. Companies have the financial flexibility to upgrade equipment without worrying about overextending their budgets.
Easy financial and operational planning
Knowing what your budget is going to look like several years from now isn't easy, but equipment leases provide some clarity. You know exactly how much you need to set aside to keep up with lease payments each month or year, getting rid of any ambiguity surrounding your cost of ownership.
Companies can also establish more precise end-of-life plans for equipment like tramp metal detection systems, belt scales and density gauges. Rather than continue pushing that machinery until it breaks down and requires replacement, industrial operators have a set timeline before that equipment can be retired. You can stay up to date with the very best industrial tools available and maximise your site's output and performance.
Industrial equipment providers like SRO Technology can offer a number of different leasing and payment options, helping any company get its hands on high-quality, dependable machinery. Our expert team of consultants can help you determine exactly what your site needs, and which leasing plan will give you the most financial flexibility. Contact SRO Technology today to find out more.