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Recycling equipment are increasingly proving to be a very beneficial asset for businesses across the board today. These machines literally cut waste and waste handling expenses down, while opening up new opportunities for added revenue for both large and small businesses. Waste recycling equipment helps streamline the course of waste collection and processing by effectively compressing the matter into smaller bales that are compactly easy to store, haul, ship and recycle back into useful products.

Waste management equipment, just like most industrial equipment, can be procured in three ways: through purchasing, leasing or renting.

With an appreciation of the value and importance to a business, many business owners are often faced with the challenge of whether to buy, lease or rent one of these machines as there are advantages and disadvantages to each. So, which is the best and most sensible option? Well, it depends on a number of factors that vary from business to business, thereby making all three options valid and beneficial choices for different situations.

Purchase Option

The outright purchase of any item usually means that you are getting the most out of that item in terms of its cost. Purchasing recycling equipment will certainly be a great return on your investment if you can manage the whole cost at once. The benefits of the machine are not in debate, more so if you are to consider how it opens new revenue avenues from the sale of the baled cardboard to recycling plants. This is obviously much better than throwing the cardboard boxes and pieces in dumpsters as is, for clearance to dumpsites and landfills.

What are the Benefits of Buying the Equipment?

Buying a piece of recycling equipment outright does come with a number of disadvantages. You’re responsible for everything financially. Unless you have a huge budget, this is most probably not a viable option. On the other hand, there are some benefits to buying.

  • Easier than Leasing – Leasing and renting can be quite tricky. Legal agreements are always tough and complex to deal with. Buying your equipment removes all these problems.
  • You Control Maintenance – This could either be a good thing or a bad thing. Experienced operators will see this as a major boon. They can decide when to pay for maintenance or when to simply replace the item.
  • Tax Deductible – You can get some of the money back on your tax bill. Recycling equipment is tax deductible. Like with renting, this could translate into you gaining thousands of dollars back courtesy of the government.

Lease Option

Leasing to own the equipment means that it will eventually be yours as an asset and that is a valuable thing in the long run since these machines are quite hardy and longstanding equipment. For those whose businesses cannot manage a lump sum investment, leasing the equipment and ensuring that the monthly fees are maintained in full for the agreed period ensures that you ultimately own the equipment in the end. What’s more, taking a lease on the machine means that you get to enjoy the benefits of this equipment right away, and actively take part in the ongoing efforts of conserving the environment.

What are the Benefits of Leasing the Equipment?

Let’s start with leasing. This is where you use the equipment for a set term. The amount you pay and the term can’t be changed without the written consent of both the owner and the person leasing the items.

  • Updated Equipment – Leasing ensures your equipment is always the latest. Each time you lease a new baler, you’re getting the latest the owner has to offer. This will help you maintain efficiency without breaking the bank.
  • Predictable Expenses – The expenses will go up over time, but there are almost never any sudden spikes. For companies with tight budgets, leasing can ensure that you don’t have to radically alter your financial plans.
  • Pay Nothing Up Front – You only pay when you’ve benefitted from the item. If you don’t have the money now, you don’t have to pause your recycling efforts. Benefit from that commercial trash compactor immediately.
  • Keep Up with Competitors – Due to being able to pay nothing up front and get the latest equipment, you’ll be able to compete with competitors who have higher budgets, or those who may even own their machinery outright.

Rent Option

Renting the machine is an ideal option for those businesses or companies that are not fully in a position to completely acquire the asset, but still wish to gain from its benefits. There are many reasons why owning equipment is not always an option on the table for certain businesses or organizations. It could be that the company is not yet committed to the size of equipment to take on; another reason would be a situation where the premises involved are also rentals and thus temporary, or it could simply not be within the company’s corporate philosophy on equipment acquisitions.

What are the Benefits of Renting the Equipment?

Renting is a set agreement for shorter periods, such as 30 days. The agreement automatically renews at the end of the period. You can end the agreement, but only after the current rental cycle has come to an end.

You’re able to use an industrial trash compactor, for example, but the landlord will still be responsible for its upkeep.

Low-Cost Access to Expensive Equipment – If you can’t afford a state-of-the-art industrial garbage compactor, renting is the one way you can get your hands on it. Compared to the thousands of dollars needed to buy it, you can pay a few hundred every month instead.

  • No Maintenance – Under the terms of a rental agreement, the landlord is responsible for any and all maintenance costs.
  • Your Choice of Waste or Recycling Provider – The reality is there are numerous landlords offering commercial recycling equipment. You’re spoiled for choice, which naturally drives up quality as people squabble for your business.
  • The Best Equipment – There’s no kind of equipment that can’t be obtained under a rental agreement. You’ll find it easier than ever before to keep up with the competition whilst practicing good financial habits.
  • Freight and Installation Included – This is another big benefit of a rental agreement. The landlord is responsible for delivering the equipment and setting it up for you.
  • 100% Tax Deductible – All that money you spent on renting equipment is actually tax deductible. Under current rules, anything you spent on renting that recycling compactor can be taken off your tax bill at the end of the year. This could translate to thousands of dollars saved.

Best Option?

There’s no right or wrong answer here. Examine your budget and your long-term plans. This is not a decision to take lightly.