Rental DG Set in Bangalore

Business owners who need DG Sets have a lot to consider when the operation of computers, machinery and other heavy load is at stake. Beyond simply weighing the overall costs of buying or leasing equipment, additional considerations include maintenance, tax deductions, flexibility and more.
When narrowing down the type of equipment for business needs, it is important to consider the pros and cons of leasing versus buying before making a decision. In certain circumstances, the cost-benefit of one option may strongly outweigh the other. Better option is to got for Rental DG Set in Bangalore as per the application and requirement.

Leasing or rental DG Set in Bangalore have several advantages and the pros far outweigh the cons.

1. Less Initial Expenses:

The primary advantage of leasing business equipment is that it allows for acquiring assets with minimum initial investment. Because equipment leases rarely require a down payment, an equipment can be obtained without significantly affecting cash flows. There is less expense up-front with leasing because the payments are easy and predictable. There isn’t any large lump sum amount needed for purchase, making it easier to budget for equipments over a longer period of time. Purchase of DG set requires huge initial capital investment in fixed assets. Therefore, renting frees up capital could otherwise be used for investing in business interests.

2. Borrowing costs:

Borrowing costs can be saved because there isn’t any bank loan taken to make the purchase.

3.Repairs and maintenance:

With leasing, payment for maintenance and insurance does not apply. If something breaks or gets affected due to normal wear and tear, the leasing company is in charge of fixing the equipment.

4. Tax Deductions:

Businesses can claim the entire lease rental as operating expenses in the Profit and Loss Account, thereby enjoying a Tax benefit @30.90% which is higher than Depreciation @15% for DG sets. This benefit would apply if a rental agreement is agreed upon.

5. Flexible terms:

Leases are usually easier to obtain and have more flexible terms than loans for buying equipment. This can be a significant advantage if individual’s have bad credit or need to negotiate a longer payment plan to lower costs. Leasing is flexible and offers more options when it comes to the type of equipment. Individual’s aren’t restricted by high up-front costs or other hesitations to try something new that may help the business. The purchaser will have to replace the existing machine and install higher capacity machine for meeting incremental power consumption, requiring additional capital investment. Hiring option is flexible and supplier can be requested to provide higher capacity machines.

6. Easier to upgrade equipment:

Renting is good for equipment that needs to be updated often because new, updated technology can be acquired easier and quicker. In case of updating equipment on an annual basis to remain competitive, leasing prevents one from being stuck with outdated equipment.

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