To buy or not to buy, that is the question…
Whilst there are some advantages to purchasing a modular building outright, there are also benefits to renting, and this can be the best option for many businesses that are looking for a cost-effective way to expand.
In this post, we take a look at the business benefits of renting a modular building in terms of finance, control and flexibility.
Perhaps the most obvious advantage of renting a modular building is the lower initial costs, meaning that you can start reaping the benefits of additional facilities, space and capacity straight away, without substantial investment.
If you’re looking to grow your business, then renting a modular building is a good way of mitigating some of the risks and uncertainty associated with expansion – keeping costs down, and maximising your available working capital.
If things do go wrong, and you need to downsize your business, then renting means that you won’t be left with a modular building you need to dispose of, potentially at a fairly significant loss.
There’s a misconception that renting a modular building means that you may have to compromise on features, but in reality, this simply isn’t the case. When choosing a modular building to rent, you’ll be able to choose from a full range of sizes, specifications, styles and colours.
By renting a modular building, you may be even able to afford a larger, higher-spec modular building that’s better suited to your business, rather than settling for the best model you can afford to purchase outright.
At the end of a rental agreement, you may have the option to purchase the modular building outright, have it extended or modified, swap it for a different building, or have it collected by the rental company.
Renting a modular building can also provide a good temporary or stopgap solution – giving you the additional space you need now, whilst you are waiting for traditional structures to be completed, or suitable business premises to become available.
Working capital and instant returns
Even if you’ve got the resources available to purchase a modular building, choosing to rent can still be a good option, as it can help you to retain working capital that can be used in other areas of your business.
In addition, renting a modular building means that you’ll be spreading the cost over a long period of time, giving you chance to recoup the investment by the additional revenue generated in that modular building.
Budgeting and tax efficiency
Renting a modular building is also a great option if you’re looking to fix and control costs in your business.
With a fixed price rental agreement in place, you’ll know exactly how much you’re spending, helping you to control expenditure, effectively manage budgets and accurately forecast your future outgoings.
In addition, renting a modular building can also be up to 100% tax efficient for most private businesses, counting as a revenue expense.
How PBS can help
At Portable Building Sales Ltd., we offer a full range of modular buildings to rent, including our new, innovative and aesthetically superior Clearview Modular Buildings, which are available from as little as £125 per week.
With specialised buildings available for a full range of industries, including business, education, construction and sales applications, you’re certain to find a modular building to rent that meets your needs exactly.
Our flexible rental service means that at the end of our agreed hire period, we can either take the modular building away, or you can purchase it outright.