Quipli is a U.S.-based maker of advanced software that lets independent rental companies accept customer orders, receive payments online, manage inventory, track equipment rentals, and much more.
Using an equipment checkout form can help you manage your inventory more efficiently. A good form will also make the checkout process easier for customers, limiting the chances of rental attempts being abandoned because of a cumbersome booking process.
Any detailed checkout form will lay out the expectations for both parties to ensure the experience is as smooth as possible. These forms will further help you keep track of your rental inventory and prevent potential losses.
Equipment Checkout Form Template
A well-put-together equipment checkout form will allow you to collect customer information and equipment usage data and then easily transfer these statistics to a database.
From there, you can track who is checking out what and who is using what. This insight should create additional sales opportunities. Here’s our free equipment checkout form you can use in your rental business.
An equipment checkout form will need to include certain information about the equipment that’s being rented and collect key details from your customer.
Collecting information for equipment checkout can be a delicate balance. You want to get as much information as possible and provide details on how you will use the data, but you want to keep the process as easy as possible.
The less your customer has to type or think, the better your results when it comes to checkout forms. Create selectable options when you can and allow for one- to two-word answers if possible.
Customer and Company Information
To start, you’ll want to collect the contact information for the person or company checking out the equipment. This data should include information about the individual authorizing the checkout and contact details for whoever will be responsible for the equipment.
A good practice is to get as much information as reasonably possible, such as the location of the company renting the equipment, as well as the location (or locations) where the equipment will be located during the rental period.
You’ll also want to provide contact information for your company, such as an email address or phone number. Include the primary contact person for each piece of equipment.
Your renter needs to know who should be contacted if there’s an emergency and who should be contacted for maintenance or repair questions. Ideally, you’ll have one contact person within your company who can direct things accordingly.
Equipment Details
Make sure to include specific details about the equipment that’s being rented. These include the make and model of the equipment, as well as the equipment type. You may also want to include the picture on the form to ensure there are no mistakes.
Other equipment-related information you’ll want to include are the serial or identification numbers and the stock-keeping unit (SKU) assigned to the equipment as well as an inventory number, that you can keep track of from our equipment rental form.
Including as many details as possible on the equipment’s condition will prevent any issues with assessing potential damage. What was the condition of the property when it was checked out? Is there any major cosmetic damage to the equipment? Laying this information out will help you fairly assess the equipment upon return.
Due Date Information
You should state the due date (and time) for the equipment explicitly. By codifying the due date and time, you can ensure there are no misunderstandings regarding when the equipment needs to be returned.
For example, suppose that a customer is completing the checkout form on Monday morning for pickup on the same day at noon. They choose a five-day rental period. Your return policy is that the equipment is due by 5 p.m. on the due date. Thus, you’d want to state the due date info as Friday before 5 p.m.
Information About Pricing and Late Fees
Pricing will be another key detail you’ll want to lay out in the checkout form. You’ll want to break down the fee structure (how the fees are calculated) and outline the fees item-by-item.
A section on other possible fees should also be included, covering damage, cleaning, and late fees. The late fee will tie into the due date and time.
Clearly state your late return policy and the fees associated with it. For example, what do you charge if the equipment is returned later than the stated due date and time? Is the renter charged for an additional day?
Also, include a policy on giving notice when the rental period needs to be extended. If the customer will need the equipment for an extra day, when are they required to notify you?
General Terms and Conditions
The terms and conditions will contain the fine print and legalities. This section will outline how, where, and when the renter can use the equipment. For example, you may have some equipment that shouldn’t be exposed to water or used with certain materials.
This equipment rental terms and conditions section will further detail contingencies and expectations if the equipment is damaged or lost. What are the procedures and timeframe for reporting damage? Which software can be used with the equipment? You will address these types of questions in the terms and conditions.
Signing and Accepting Responsibility
When accepting the terms and conditions of the equipment checkout form, your customer should become more informed about the responsibilities inherent in renting the equipment.
Signing the form includes accepting the responsibility of safely operating and caring for the equipment, as well as the terms of the fee schedule. You can reiterate the potential fees and penalties in the terms and conditions.
Near the terms and conditions section is the signature block. This area is where the customer (or the company representative) will sign, accepting the terms and conditions and acknowledging that the information on the checkout form is correct.
If you’re looking for more than just an equipment checkout form and want a fully integrated checkout system that makes managing your rental equipment inventory simple, Quipli can help.
Quipli’s platform includes a seamless checkout process with all the key checkout information you’ll need. It’s also an inventory tracking system.
Ready to streamline your business? Reach out anytime to book a demo of our equipment rental software and check out what Quipli can do for you.
Rental companies need to determine their total equipment value for various reasons, whether it be for buying and selling equipment, auditing your rental inventory, or getting it insured.
Equipment values will vary based on your business, but our used equipment value calculator is a great first step in creating a construction equipment price guide.
Reasons for Valuation
The reason you’re looking to value your equipment will play a role in which equipment value estimator and approach you’ll use. Are you looking to buy or sell a piece of equipment? Assessing the value for insurance purposes? The valuation methodology you’ll use depends heavily upon the reason you’re trying to determine a value for your equipment in the first place.
When it comes to valuing equipment for buying or selling, there are three key valuation methods.
1. Fair Market Value
Fair market value is a valuation method in which both a buyer and seller are willing to partake in a transaction. Say you’re looking to start a rental business: To get an idea of the costs involved, you can use a fair market value calculator. Equipment you’d need can be entered into the calculator to determine the price you’d pay.
If you already have a rental business but are looking to upgrade your equipment by selling some older items, then the fair market value is likely what you’ll use to get a rough idea of how much you could sell your equipment for.
2. Orderly Liquidation value
The orderly liquidation value is what’s expected when a seller is forced to sell an asset with some time constraints. This method gives a reasonable amount of time to find a willing buyer. This valuation is generally less than the fair market value.
3. Forced Liquidation Value
A forced liquidation value is the asset’s value if sold almost immediately at auction. This valuation assumes the assets or equipment are sold as soon as possible and is generally lower than the orderly liquidation value.
Insurance
If you’re looking to value your equipment for insurance purposes, such as filing an insurance claim or purchasing a new insurance policy, you’ll use one of the three methods below.
1. Actual Cash Value
Insurers may use the actual cash value to determine the value of your equipment. This value is calculated as the replacement cost of the equipment and incurs less depreciation.
2. Replacement Cost New
The new replacement cost is the value of purchasing the latest version of the same piece of equipment, brand-new.
3. Reproduction Cost New
The new reproduction cost is the valuation for a piece of equipment based on the costs involved in reproducing the equipment with the same specifications, based on current prices.
Financial Reporting and Financing
If you’re valuing your equipment for financial reporting or to raise funding for your business, there might be specific requirements. For example, a lender may base its valuation on the market price of the equipment for calculating the loan-to-value ratio.
How to Calculate Your Equipment Value
Regardless of the reason, if you’re looking to calculate the value of your equipment, you’ll need to do the following.
Identify and Compile the Relevant Information for Each Piece of Equipment
To get a proper valuation done, you’ll need to gather key information for each piece of equipment you have, such as:
Purchase date
Purchase price
Accumulated depreciation
Keep a file with this information readily accessible.
Determine the Right Valuation Methods
There are three different methods that are generally used for equipment valuations: the sales comparison approach, the cost approach and the annual straight line depreciation method.
Sales Comparison Approach
The sales comparison approach looks at the current market for new and used equipment — what are the current prices for similar equipment between willing buyers and sellers? A sales comparison approach is used when sales data is readily available.
The age and condition of the property are taken into account when looking at used equipment. This may involve looking at recent auctions, dealer listings, and conversations with vendors to assess the market.
The best way for this approach is to start keeping track of what similar equipment is being sold for so you can gauge your own equipment.
Cost Approach
The cost approach (also known as the cost method) uses the new replacement cost. This method is generally used when there’s not an active market for the equipment. For example, you have a specific type of excavator that the manufacturer no longer sells, and as such, there’s no real market for it. Your heavy equipment valuation calculator should point you toward using the new replacement cost for a new version of a similar piece of equipment.
When there’s not an active enough market for the sales comparison approach, that’s when the cost approach is used. It is also suitable when the product is highly customized.
If you have a rental business that uses custom equipment, the cost approach is what you’d use for your valuations. The cost approach may include reaching out to manufacturers and vendors to appraise the custom equipment needed to reproduce the asset and may also involve checking published price lists.
If the equipment is no longer made, the cost approach may include reaching out to the previous manufacturer to see if they can provide an estimate of what the equipment would cost to build today, factoring in present technology and current prices for supplies.
Calculate the Equipment Value
Now that you’ve nailed down the reasons for your valuation, you should have a general idea of the best method to conduct it. If you’re using the sales comparison approach, look at the buy-and-sell market for new or used equipment like yours. The cost approach means you’ll need to find equipment that’s similar to yours and factor in depreciation.
Build Your Quipli Rental Business with Quipli
Quipli is an all-in-one software solution for rental businesses. Our equipment rental software helps rental companies track their inventory to maximize revenue-generating opportunities and integrates with our reservation & scheduling tool for a seamless customer experience. Reach out to the Quipli team today to learn more.
Search engine optimization – better known as SEO – is a subset of digital marketing.
It’s a set of strategies and techniques that help make your website more likely to show up on the first page of Google search results.
A good SEO strategy means you’re likely to show up at the top of the page when people search for something like “forklift rentals in Dallas” or “excavator rentals near me” – things that hundreds or even thousands of people search for every day.
If you’re the one that comes up at the top of those searches, then those customers are probably going to end up buying from you.
If you don’t have an SEO strategy in place, you’re missing out on a lot of sales – sales that may well be going to your competitors instead.
SEO can seem daunting at first, but it doesn’t have to be.
We’ve created a beginner’s guide that breaks down SEO for equipment rental companies step by step, showing you how to get started and build the solid foundation you need for SEO success.
If you’re running an equipment rental business and new to SEO, here’s what you need to know.
Want to make more sales? Your business needs an SEO strategy
Someone needs to rent a piece of equipment – heavy machinery, a kayak for a weekend trip, or anything in between.
What’s the first thing they do?
They pull up Google and search.
They might look for something like “backhoe rentals near me,” or “backhoe rentals in Philadelphia.” (There are several common query structures that customers use – check out our post on the top cities for equipment rental searches for some more info on exactly what people tend to search for.)
Chances are, they’ll end up going with a company that shows up at the top of the Google search engine results page (SERPs).
So if your competitors are optimizing for Google search, but you’re not, you’re losing out on a big chunk of potential business.
For equipment rental companies, search engine optimization (SEO) is a key source of leads and bookings. Being able to rank on the first page for relevant searches can make a huge difference for your business’s growth and success.
So how do you show up for the right searches? You need a solid SEO strategy.
How is local SEO different?
Equipment rental companies are businesses that serve a particular geographic area, rather than catering to customers nationwide or internationally.
As such, you’ll need to focus on what’s known as “local SEO.” This is a subset of search engine optimization that centers on tactics and strategies that work for local businesses.
There are some additional tools and considerations that are specific to local SEO (versus national or international SEO). The right strategies will help your business rank for local searches, targeted specifically toward people in your geographic area – things like “forklift rentals near me.”
For these kinds of local searches, Google’s search algorithms take some additional factors into account – namely, Distance, Relevance, and Prominence.
“Distance” concerns how close the searcher is to your business’s location. The closer they are to your address, the more likely you are to come up in their searches.
“Relevance” is pretty self-explanatory – Google shows people results that sync up with what their queries indicate that they’re looking for.
“Prominence” concerns factors like the quantity and quality of your reviews, as well as the amount of engagement your brand is getting online.
Creating an Equipment Rental SEO Strategy: What You’ll Need to Do
SEO is a long game. While you won’t see results overnight – in most cases, it’s a matter of months before you really start to see clear gains – SEO can bring a lot of long term growth.
To get started with an SEO initiative, you’ll need to cover some groundwork first and lay the foundation for success.
Here’s what you’ll need to do to get started with SEO for your equipment rental business:
Claim and optimize your Google My Business page
Set up Google Search Console (GSC)
Perform keyword research
Optimize your website for your primary location
Optimize your site for technical SEO factors
Create optimized categories
List your company on relevant online directories
Encourage your customers to leave reviews
Develop a content marketing strategy
Build backlinks – links to your site from other websites
Here’s a step by step guide for what you’ll need to do to set your SEO strategy in motion.
Claim and Optimize Your Google Business Profile
Google Business Profiles are an essential part of local SEO. For local searches, the algorithms draw heavily from information about businesses that’s contained on these pages.
This feature has been around for over fifteen years, under several names. Up until quite recently, it was known as “Google My Business” – usually abbreviated as “GMB.”
In 2021, Google changed the name to “Google Business Profiles.” However, the abbreviation GMB is still in standard use throughout the SEO industry.
In this article, we’ll be referring to Google Business Profiles as “GMB” for short.
One of the first things you’ll need to do is to create your GMB listing, and ensure that it’s optimized properly.
The first thing you should do is to run a Google search for your business, to just to make sure it doesn’t already have one. (If it does, but you’re not in possession of it, you can claim the profile.)
If you don’t have one yet, setting it up is a pretty simple process.
After you enter your information, Google will need to verify your profile. This involves sending a postcard to your physical address, and usually happens within one business week.
Some of the information you’ll need to input includes:
Your official business name
Your business category
Your address and phone number
Your business hours
Your website URL
Information about your service area
Optimizing your Google Business Profile
You’ll want to include relevant SEO keywords in your GMB profile, as you would on your website.
You also need to ensure that all of your business information is accurate. One of the biggest factors in local SEO is what’s known as “NAP consistency.” NAP stands for “name, address, phone number.” These need to match across various platforms — GMB, your website, online directories, etc.
Post to GMB Periodically
Google Business Profiles allow you to create posts on the platform. Posting to your GMB profile helps maintain an active presence on Google, as well as giving you an additional place to engage directly with your customer base.
You can post things like discounts and offers; new products; upcoming sales and other events; and general info and updates about your business.
If you want to execute a successful SEO strategy, you need to be able to track results – search rankings, traffic analytics, and other important metrics.
Google Search Console – formerly known as Google Webmaster Tools – is a key weapon in your SEO arsenal. It’s a free platform that lets you monitor how your site is performing.
With GSC, you can see information like referring domains, desktop and mobile site performance, whether you’re featured in rich search results like Featured Snippets, and more.
GSC is a robust tool, with a lot of different features. It can take some time to get the hang of using it, but once you do, you’ll swear by it.
Because GSC gives you access to confidential information, you’ll need to prove that you own the website. There are several verification options to choose from.
Once your site is verified, you’ll be able to see data for it.
Perform keyword research to find the best search queries to target
SEO revolves heavily around keywords – that is, the queries that users type into Google when they search.
Keyword research is the process of finding out exactly what people search for, when they’re looking for the kinds of products you offer – in this case, equipment rentals.
So where do you find keywords?
One place to find them is Google Keyword Planner, Google’s own tool for keyword research. It’s free to use, but there’s a caveat: the data it gives doesn’t tend to be very accurate. You’ll end up seeing search volume ranges along the lines of “100-1000,” or “1000-10,000.”
If you want data that’s far more accurate, third party SEO tools are the way to go. There are a bunch of different tools on the market to choose from, with some of the most popular being SEMRush, Ahrefs, and, for local SEO, BrightLocal.
The idea is to find keywords that people would search for if they’re looking for something that you can offer them.
For example, if you’re a heavy construction equipment rental company based in El Paso, Texas, you’d want to optimize for queries like “forklift rental in El Paso.”
How to search for keywords
There are a couple of different methods you can use to find suitable keywords you can optimize for.
Brainstorm “seed” keywords, then search them to find other related keywords. For example, you might start with something like “kayak rentals.”
Check what your competitors are optimizing for. SEO software lets you snoop on what your direct competitors are optimizing their own pages for. This is a great way to get some info on the best keywords to target.
When you find keywords, you’ll be able to get data for them. This includes information like search volume – how many people are searching for that query each month. You can also look at the existing SERPs for a particular keyword.
Most SEO software will also assign a Keyword Difficulty Score. While these are a third party metric (rather than being directly involved in Google’s algorithms), they can give you a general idea of how hard it will be to rank.
For a thorough guide to keyword research strategies and best practices, we recommend this comprehensive guide from Ahrefs.
Optimize your site for your primary location
Because you’re a localized business that serves a specific geographic area, you’ll need to optimize your site for your primary location, as well as for relevant keywords.
You’ll need to use your location in key places on your site – headings, URLs, page titles, body copy, and the like. Just as you would do with your target keywords.
Create compelling, original product descriptions optimized for search
Each item you’ve got available to rent should have its own unique product description. You can easily optimize these descriptions for SEO, including relevant keywords for which you want the page to rank.
Your product descriptions should, of course, be written for humans rather than for search algorithms. They should describe the products thoroughly, and the copy should be well-written enough to compel someone to book a rental.
Product descriptions tend to be pretty concise and to-the-point. As such, you want to make sure to avoid using your keywords too many times, which can actually work against you.
Some of the key places to include your target keywords include:
The URL of the product listing page
The page title
The main body copy for the product description
Alt tags for the product images featured on the page
Create optimized category pages
Category pages are an important part of any ecommerce site. They divide your products up into subsections by type, making it easier for your customers to browse and find what they’re looking for.
They’re also great for SEO. With the right strategy, you can bring in organic search traffic to these pages. To do this, you’ll need to add substantial text to the page, which is optimized for your target keywords.
Create citations by listing your company in relevant online directories and websites
“Citations” are online references to your business that contain your company’s name, address, and phone number (“NAP data”).
There are several different platforms online that host citations. Along with Google Business Profiles, there are also such well-known options as Yelp, Angie’s List, and Facebook.
You’ll also find other, smaller online directories that are a good place to get a citation.
These citations are a key factor in the off-page aspect of local SEO. When your business is listed in trusted online directories, that sends Google a signal that your business is worth showing to potential customers.
It also offers you other opportunities to come up on Page 1 of relevant Google searches, beyond just ranking your own website.
Some queries tend to be dominated not by individual business’s sites, but by directories and aggregation sites like Yelp or YellowPages. Having a presence on these platforms can help get you in front of searchers, even if your own site isn’t on the first page.
Because citations are so important, it’s worth investing in software tools that help you with citation management. One of the most popular options is BrightLocal.
How to optimize your citations
When you create citations, you’ll want to optimize them, making sure that you include key information.NAP data. We’ve mentioned that it’s important for your business’s name, address, and phone number to be consistent across different websites and platforms.
Business description. These are a good place to include some of your core keywords.
Website link. Obviously, you’ll want to include a link to your website.
Category. On sites that let you select a category, you’ll want to make sure you choose one that’s accurate.For example, if someone wants to rent a forklift, they might look for something like “best forklift models.”
Some of the styles of content you can create, centered around relevant SEO keywords, can include:
How-to guides and tutorials
Product reviews and comparisons
Industry news
Interviews with industry experts
Once you create content and publish it on your site, you can also promote it to your audience on social media.
Build backlinks to your website
Other than citations and GMB, most of what we’ve discussed so far in this article concerns what you would call “on-page SEO.”
Things like optimizing your pages for keywords are just one part of the SEO equation.
The other component is known as “off-page SEO.” Here, backlinks play a central role.
A backlink is a link to your site from someone else’s website. Ever since Google’s inception, backlinks have played a major role in the company’s search algorithms. Taking links into account is how Google beat out the competition back in the early 2000s.
To thrive in the SERPs and get that coveted organic traffic, you’ll need for other websites to link to yours.
How to get backlinks
So, how do you get backlinks?
This is an age-old question in the SEO world, and one for which there isn’t really any one, straightforward, simple answer.
In the early days of Google, there were many schemes and shortcuts that SEOs used to get links – links they essentially created themselves.
But in 2022, these strategies are very much a thing of the past. There’s no way around it: getting backlinks is one of the most challenging parts of SEO.
You need links from reputable websites – links that make sense in context, and aren’t obviously there as little more than an SEO ploy.
Here are a few of the common ways to get quality links:
Check out your direct competitors’ backlinks to get ideas. One of the best places to start with a link building strategy is to see what your competition is doing. You can easily use tools like Ahrefs and SEMRush to snoop on your competitors’ backlinks, finding out exactly where they’re coming from. You can then emulate their strategy, and seek out the same kinds of links.
Directories: We mentioned the importance of citations earlier in the post. Links from reputable online directories are a great way to boost your off-page SEO for a local rental business.
Local press. If you have something interesting or newsworthy going on, you can put out press releases, or reach out directly to local journalists. Getting some press is one of the very best ways to get high quality backlinks that move the SEO needle. It’s also great for general PR.
Guest posting. Guest posting is where you write and publish a blog post on someone else’s website. For these to be effective, they need to have value for the other website’s audience. You’re sharing your insights and expertise. If you’re interested in guest posting, you can reach out to the owners of other sites whose audience overlaps significantly with your own.
Local sponsorships and scholarships. One way to get some quality links is to offer a small college scholarship for local students, or to otherwise offer some kind of sponsorship.
These are a few of the ways to get good links for your business’s website.
Set yourself up for SEO success by putting the right foundation in place
When people want to rent a piece of equipment, the first thing they usually do is Google it. This means that if you’re not showing up in Google searches, you’re missing out on a lot of valuable business.
A strong SEO strategy can make a huge difference for your business’s growth and success, bringing in more leads and getting you more bookings than ever before.
Once you’ve got the right foundation in place, you can continue to develop your SEO strategy over the long term, bringing consistent growth over years to come.
SEO is a complex undertaking, with a lot of moving pieces, and a lot of information to learn. When you’re running a rental business, you don’t always have time to handle all of that yourself.
Quipli Is Improving the Construction Equipment Rental Experience
Just because owning and maintaining construction equipment is expensive doesn’t mean renting it has to be. Quipli simplifies the equipment rental process. Our equipment rental software embeds easily into any website, allowing customers to enjoy a smooth rental experience without the traditional headaches.
The pandemic pushed prices of just about everything sky high. If you’re in construction, you watched as 2 x 4 prices went from about $2 to $6 or more. Equipment prices rose similarly. Thankfully prices are coming back down, though they aren’t quite down to pre-pandemic levels. This begs the question: if you’re in the market to buy, what kind of construction equipment prices can you expect?
The Most Popular Types of Construction Equipment
Here are the types of construction equipment we’ll be looking at:
Excavators
Backhoes
Bulldozers
Skid steer loaders
Wheel loaders
Concrete mixer trucks
Motor graders
Forklifts
Augurs
Sod Cutters
Floor sanders
Log splitters
Paint sprayers
Cranes
Bucket trucks
Remember that you may find outliers that are cheaper or more expensive than what we list here. The price ranges offered are meant to give you a reasonable expectation so you can budget accordingly. Learn about the most expensive construction equipment here. Note that maintenance costs can be high.
How much does construction equipment cost? Let’s get into it.
Excavators
Expect to spend between $100,000 and $500,000. Heavy machinery prices vary mostly based on the size and capability of the machine. For a large name-brand excavator with massive digging power, $500,000 is not out of the question.
Backhoes
You’ll notice a wide price range, with small budget models at around $15,000 and heavier duty brand name backhoes inching close to the $100,000 mark. You may want to stick to brands that have ready parts availability and a wide network of support.
Bulldozers
A 40-hp dozer could be as little as $30,000, while a 400-hp model could be as high as $200,000. Most bulldozers are around 130 hp and cost between $75,000 and $175,000, depending on brand and features.
Skid Steer Loaders
The ubiquitous Bobcat might be the most familiar skid steer loader, and you may have even heard someone call one a Bobcat despite it being from a different company.
If you want a new skid steer loader, expect to pay $15,000 to $50,000 for the name brand with more power and features. Capacity also plays a large role in cost, with a 1,350-pound capacity loader costing near the low side of the price range, a 1,600-pound capacity loader in the middle, and a 2,200-pound loader occupying the top end.
Loader attachments can add up, too. Want to add a bucket? There’s a grand. Forklift forks? About $3,000. Want hydraulic actuated tools like hammers or backhoes? They can cost as much as the skid steer loader itself.
Wheel Loaders
When discussing wheel loader prices, it’s important to remember that there’s a huge diversity of size and capability. These equipment pieces can come with around 100 hp and cost as little as $40,000. A 200-hp model will run over $100,000. 350 hp will cost up to 500,000. A 500-hp model will be as high as $1,000,000. The average price range for a wheel loader sized for most construction companies is between $100,000 and $200,000.
Concrete Mixer Trucks
Concrete is exceptionally heavy, and the mixer trucks that carry it are also. Your concrete mixer truck might weigh between 25,000 and 30,000 pounds. The size and weight of the truck directly impact how much concrete mix you can transport.
Expect to pay around $100,000 to $150,000 for a new model. Concrete mixing trucks might seem like a big investment, but they usually make up for it in profit for the owner.
Motor Graders
When it’s time to pave a road, parking lot, or any area of land that needs to be billiard table smooth, a motor grader is essential. For smaller, 130 hp to 180 hp graders, expect to pay between $200,000 and $300,000. Larger companies with big contracts for highways might need 250 hp or more, which will mean they’ll be spending $400,000 to $500,000. If you can get away with a compact grader with less than 100 hp, you could spend $100,000 and get a quality machine.
Forklifts
If you want internal combustion, expect to pay $20,000 to $50,000. For an electric forklift, the cost is about the same, but you’ll need to spend about $2,500 to $5,000 for a battery and charger. More capacity equals more cost, so determine how much your forks will need to lift before you buy. Accidents happen, too, so don’t forget to ask about warranties and protection plans.
Sod Cutters
You could spend as little as $35 for a handheld electric sod cutter or as much as $1,200 for a gas-powered version with wheels. If your company is constantly landscaping, you will probably be best served by a larger gas-powered model that can do the job in a fraction of the time.
An ax can only take you so far. The average cost of a gas-powered log splitter is $1,000. There are cheaper manual versions for a few hundred dollars, but those work best if you don’t have a lot of logs to split. The high end of the range is about $7,500.
Paint Sprayers
Paint sprayers make the job of painting faster, more consistent, and give professional results. It’s worth spending between $50 and $300. Lower-priced models may be battery or plug powered, while the finer models will run off compressed air.
Cranes
Here’s another piece of equipment with a massive variety of sizes. A truck-mounted crane, low-end all-terrain crane, or rough terrain crane might cost about $100,000. Size increases bring price increases, and the largest examples can exceed $1,000,000. Crawler cranes are in a league of their own and can cost between $2,000,000 and $5,000,000. That’s the cost of heavy equipment.
Bucket Trucks
For sign maintenance, line service, and landscaping, a good bucket truck is a must-have. Low-end light-duty examples might be only $37,000, while higher-quality light-duty trucks could run as much as $140,000. The size, sturdiness, and features depend on the type of work you do.
Ready to streamline your rental business operations with powerful, dedicated rental software? Contact us today to book your demo, and find out more about how Quipli can help you take your business to the next level!
As a rental business owner, you want to get your equipment back in one piece every time. Equipment rental customers expect to rent machinery that is in good, safe working condition.
Unfortunately, the parties involved can’t just rely on the honor system when it comes to such expensive machines. A clear, comprehensive equipment rental liability waiver protects you and your customers by outlining the responsibilities and obligations of both parties.
* This is a sample liability waiver form. Please consult with a lawyer before use.
Liability and Equipment Rental Businesses: How to Protect Yourself Legally
A liability waiver for rental equipment details how equipment should be used, who is allowed to use the equipment, and in what ways you, the rental business owner, will be responsible in case of an injury during the use of the equipment.
Accidents can happen even with proper use by the client and proper maintenance by you. If you don’t provide a well-written waiver with your rentals, you may be liable for any damages caused.
Note that even the most comprehensive waiver does not take the place of insurance. You may still face a lawsuit despite having a liability agreement. Make sure that you have plenty of general liability insurance to fill in the gaps not covered by your agreements.
Your waiver needs to be legally enforceable, but it will still only reduce your chances of getting sued or facing insurance claims.
What Is a Liability Waiver?
A liability waiver is a legally binding document that outlines all of the stipulations for allowing one person to rent a piece of equipment from another. More specifically, the waiver outlines:
The parties involved in the rental (the lessor and the lessee)
The appropriate use of the equipment
The timeline of the rental
The rates of the rental
How to return the equipment
When the customer signs the waiver, it shows that they are fully aware of the risks of using the equipment and can’t hold you or your company responsible should they misuse it.
As for terms that may be included in your waiver, you may have noticed “lessor and lessee” listed above. These terms refer to the two main parties:
Lessor: Refers to you, the owner
Lessee: Refers to the customer renting the equipment
You don’t have to use these terms specifically and can instead use “owner” and “renter” if you prefer. The more clarity and details you give your waiver, the less likely you’ll experience legal difficulty in the future.
What to Include in an Equipment Rental Liability Waiver
While there are some universal inclusions your waiver should have, there will be subtle differences depending on which state you operate from. You will need to consult with a lawyer or thoroughly examine state law to ensure you are in compliance.
Inherent Risks
This part of the waiver does not cover the condition or state of repair your equipment exists in; instead, it covers proper use of the equipment and the risks it poses regardless of condition. Every machine comes with some risk by its very nature, and the possible risks must be outlined here.
Assumption of Risk
Your customers will not be able to claim ignorance of the risks posed by using your equipment. The assumption of risk shows that they understood the dangers and cannot claim otherwise.
Release Clause
Once your customer takes possession of your equipment, you are released from any liability for its use and won’t carry the legal burden should the customer misuse it.
Indemnification Clause
This means that your customer would have to compensate you for legal fees incurred should they sue you and lose.
Insurance Information
This gives the customer all of the situations covered by your equipment rental insurance, outlining what is covered and what isn’t covered.
Choice-of-Law Information
This part of your rental equipment liability waiver allows those involved to decide which state’s laws will govern and interpret the waiver. The parties may choose a state other than where the business and customer are located and even a different state than the one in which the agreement was signed.
Insurance for Rental Equipment: Making Sure Your Business is Fully Protected
Unfortunately, “insurance” isn’t a catch-all term that allows you to get a single policy to cover every possible situation. Instead, you’ll need different types of insurance to cover specific incidents. It’s important to remember that even with specified insurance, it is still possible to face a lawsuit or insurance claim; it’s just far less likely to happen.
General Liability Coverage
This type of coverage protects you in most circumstances that involve customers using your equipment. It covers general claims regarding injuries and property damage. The payout is determined between the insurance company and the client.
Inland Marine Insurance
While this might sound like it’s for equipment used in and around the water, it’s instead meant to cover the transport of equipment over land. It covers property damage (both to your equipment and from your equipment), theft during transport, and temporary third-party storage.
For coverage regarding transport over water, a company would need to purchase “marine insurance.”
Property Insurance
Property insurance covers the equipment and tools in case of damage or theft. This insurance is important not just for the equipment you rent out but for your company’s computers and other necessary electronics, inventory, and tools not intended for customer use.
Workers’ Compensation Insurance
This insurance takes care of workers who are injured during work. It allows them to continue having expenses handled and salary paid.
Reduce Your Rental Business’s Risk with Quipli
Managing rentals, inventory, and equipment reservations requires keeping track of many moving parts. To ensure your equipment, tools, and even your customers don’t get lost in the shuffle, turn to Quipli for your equipment rental software.
Check out what Quipli can do for you and transform your rental business today.
An excavator is one of the most versatile and reliable pieces of heavy equipment. Available in a range of sizes and with a variety of features, excavators can play a role in construction, excavation, and landscaping.
If you run a construction company or an equipment rental business, you’ll want access to the best-performing excavators on the market. Here are some tips on how to select the right excavator for your needs.
Where to Buy an Excavator: 7 Places to Look
You can buy excavators from a heavy equipment dealer. Some equipment rental companies will sell their used excavators, but to buy a new machine you’ll have to shop at a heavy equipment dealership.
The websites of major brands will often allow you to search for licensed dealers in your area. This can be ideal if you’re looking for an excavator from a particular manufacturer.
Here are some of the best ways to buy excavators for your rental business.
Ask around in your network
If you know other people in the construction industry, your network can be your best resource for making decisions about what equipment to buy. Ask around about recommended models, local dealers, and what other people recommend.
Use Google to search online
Google searches can be a great way to get a feel for the market landscape. You’re likely to come up with a variety of brands, dealers, and auction services.
It’s also a good idea to look for real, firsthand customer reviews of excavators you’re considering.
Check out Construction Equipment Guide
Construction Equipment Guide is an online directory that aggregates auction listings for heavy construction equipment like excavators. While you can’t bid directly through their website, it’s a great way to find auctions near you.
Search on Ebay
Believe it or not, Ebay is actually a prime destination for heavy equipment sales and auctions. Most listings are restricted to “‘Buy it Now,” meaning you usually don’t have to worry about someone outbidding you at the eleventh hour.
Search on Equipment Trader
Equipment Trader offers both new and used construction equipment for sale. You can also use them as a platform for selling off old equipment.
Look on IronPlanet
IronPlanet is an online marketplace that bills itself as the “Netflix of construction equipment.”
Sellers cosign the equipment they want to sell, then IronPlanet inspects it and lists it on their website. You’ll find a great selection of excavators here.
Look on Machinery Trader
Machinery Trader is a site for selling new and used construction equipment. They also have great discounts on accessories and replacement parts.
What to Consider When You’re Buying an Excavator
Excavators come in a variety of sizes and styles. Before you commit to a purchase, you’ll need to find an excavator that matches your needs or the needs of your rental customers. Consider these three questions before making your purchase.
How Will the Excavator Be Used?
The size and type of excavator can make it uniquely suited for specific applications. For example, a caterpillar excavator can be ideal for uneven surfaces, while a wheeled excavator offers speed and maneuverability when working around asphalt.
Since size usually translates into power, it’s also important to ensure you purchase a machine with enough horsepower and hydraulic flow for the job site. However, you don’t want to buy an overpowered machine that’s not right for the job.
Look for machines that offer specialized features (such as a longer boom arm) that can be used for specific projects.
What Size Excavator Do You Need?
Excavators can be as small as a mini-excavator, which weighs roughly six tons. But you can also purchase excavators in very large sizes. Again, you’ll need to select an excavator that is appropriate for your needs without being too weak or too much for the job.
How Are You Transporting the Equipment?
Larger excavators naturally require specialized care during transport, so it’s important to ensure you have the means to transport the machine from place to place. If you need to purchase additional equipment for transportation, factor that into your overall heavy equipment budget.
Buying New vs. Buying Used: Which Is Best for Excavators?
The price of a new excavator can range from $75,000 to $600,000, depending on its size, brand, and features. Some users opt for a new excavator for the following benefits:
The full manufacturer’s warranty
Better condition
Less chance of requiring maintenance
But despite these benefits, the price break of a used excavator can be very persuasive. And because the average operating lifespan of an excavator is 8,000 to 10,000 hours, it’s easy to find used machinery in good condition.
If you’re on a budget, you might consider buying an excavator that’s two to three years old with fewer than 5,000 hours of total operation. You can generally expect to pay 25% less than a new model.
To go even lower, you can find an excavator that’s more than three years old for as little as 50% of the cost of a new machine. Just make sure to inspect each machine thoroughly to ensure you’re getting an excavator of sufficient quality and value.
Tips for Inspecting Used Excavators Before Buying
If you choose to buy an excavator that has some years on it, you’ll need to make sure the machine is still in good operating condition. Here’s how you can inspect an excavator to ensure top quality.
Check for Slew Ring Damage
The slew ring is found between the excavator’s housing and undercarriage. Metal particles or flakes in the lubricant indicate that wear is taking place. Grinding or clicking noises coming from the bearing can likewise indicate wear or a lack of proper lubrication.
Check for Loose Connections in the Excavator’s Boom, Stick, and Bucket
Excavator sticks and connection points should be secure and tight. Check for any looseness or play in these points, as this can affect the machine’s performance and accuracy.
Inspect the Undercarriage for Damage
Dents, dings, or other damage to the machine’s undercarriage can indicate that the excavator was not used as the manufacturer indicated or the machine was involved in an accident. These signs can also point to further internal damage that can’t be seen from the outside but could require repair in the near future.
Check for Hydraulic Pump Leaks
Check the hydraulic pump, hoses, cylinders, and lines for any leaks. Fluid leaks could affect the efficiency of the machine and even lead to structural damage if the excavator has insufficient fluid levels.
Check the Bucket Teeth
One of the most common signs of wear is scalloping to the excavator’s bucket teeth. This happens naturally over time but can reduce the cutting force of the machine. Wear on the teeth can affect the quality and value of the machine, so take note of this before you buy.
Excavators have long been a staple for the equipment rental industry. If you’re interested in augmenting your equipment rental business through state-of-the-art software, contact Quipli today. We can streamline your business and help you deliver a higher degree of customer satisfaction.
Mini excavator use is on the rise — after all, they’re great for navigating tight spots and speeding up home projects. Their versatility makes them handy for tasks from trenching and grading to landscaping, and the rental market for these small earthmoving machines is set to increase.
Sorting through all of the mini excavator brands can be overwhelming. Each manufacturer may offer multiple sizes and features. But the usefulness of these machines makes them worth a closer look.
Some of the key benefits of a smaller excavator include:
Longer useful life
Easier to transport
Less ground damage
Fewer track marks
Even with these benefits, they still accomplish many of the tasks of larger excavators, such as leveling, trenching, grading, demolition, and digging. Mini excavators might be rented for the following projects and more:
Landscaping
Digging pools or hot tubs
Installing sewer lines
Installing driveways
Due to their convenience and practicality, mini excavator rental businesses have a strong outlook. One of the latest construction industry trends has been an uptick in mini excavator sales and rentals.
The Top 10 Mini Excavator Brands for Rental Businesses
With demand for small excavators on the rise, most major construction companies have entered the market, offering smaller machines that weigh anywhere from 2,000 to 20,000 pounds. The versatility of these machines makes them a must-have for construction companies and construction equipment rental businesses.
Here are the top ten mini excavator brands worth considering.
Kubota
Kubota offers various compact and well-rated models in the mini excavator category, including the K008-3 and KX161-3 models. These models weigh just around 2,200 pounds.
Takeushi
Japanese equipment makerTakeuchi has been in business since the 1960s. Takeuchi offers several small excavators, including its TB135, which has rubber tracks and weighs just under 8,000 pounds.
Bobcat
Doosan-owned Bobcat is a major name when it comes to small construction machines, especially skid steers. But it also offers 11 mini excavators that range in weight from 2,600 to 19,000 pounds. Its popular Bobcat 331 weighs just over 7,700 pounds.
John Deere
John Deere, known for its farming equipment, also makes small excavators. Its smaller machines include the G-series of excavators: the 17G, 26G, 30G, and 60G. The 17G weighs 3,800 pounds, while the 60G is just under 14,000 pounds.
Caterpillar
Caterpillar is the premier name in construction equipment. This American manufacturer offers 24 mini excavators, with the 300.9D being the most compact at just over 2,000 pounds. Some Caterpillar mini excavators have Caterpillar engines, while others have Yanmar engines.
Yanmar
Japanese equipment makerYanmar made one of the first mini excavators in the 1960s. This company offers small excavators equipped with Smart Assist, which helps detect machine issues. Yanmar’s Vi line of mini excavators offers zero tail-swing.
Komatsu
Komatsu, the Japanese construction equipment maker, offers various compact excavators weighing up to 18,000 pounds. The smallest Komatsu excavators include the PC30MR-5 and the PC35MR-5, which weigh just under 7,000 and 9,000 pounds, respectively.
JCB
Founded in the U.K. in the 1940s, JCB has long specialized in construction equipment, including small excavators. Its mini excavators include the 19C-1E zero-emission electric excavator, weighing just two metric tons. It also offers various other models that weigh anywhere from 4,000 to 20,000 pounds, including the 18Z-1 zero tail-swing model.
CASE
CASE Construction Equipment, which is owned by CNH Industrial, is known for its skid steers, but it also makes small excavators. It offers six mini excavator models that range from 4,000 to 13,000 pounds.
Hyundai
While better known as a car manufacturer, Hyundai also makes heavy equipment. It offers compact excavators in eight models, with the smallest being just under 4,000 pounds.
When you compare mini excavators, you’ll also want to consider which projects your customers tend to work on. Do you need the smallest excavator available to get into tight spaces and dig around foundations and walls? Or do you need a bit more power for larger grading projects?
The size, weight, carrying load, and potential rental market will all play a role in your decision. Fortunately, you’ll likely find a mini excavator that fits your budget and needs.
What’s the Best Mini Excavator for the Money?
Key considerations when buying a mini excavator include the size, available attachments, and boom type. However, the driving force is generally excavator cost. The mini excavator comparison below is a great place to start. These are five of the best mini excavators for the money.
CAT 301.6C from Caterpillar
The CAT 301.6C, made by Caterpillar, is one of the smallest excavators the company makes. Costs start at around $33,000, and the model weighs just over 4,000 pounds.
Bobcat 418
The Bobcat 418 starts at around $20,000 and weighs 2,600 pounds. It’s relatively easy to transport and is known to be dependable.
Kubota Mini Excavators
Kubota offers a variety of small excavators, with many starting below $20,000. The Kubota K0008-3 is one such excavator and weighs just 2,200 pounds.
Yanmar Mini Excavators
Yanmar offers several affordable small excavators. These include the ViO35-6A, which weighs just over 8,000 pounds. Some ViO series Yanmar compact excavators go for around $30,000.
Komatsu Mini Excavators
Most Komatsu mini excavators start at $25,000. These include its popular newer model, the PC30MR-5. Komatsu also makes the world’s smallest excavator, the PC01-1, which weighs just under 700 pounds.
The best mini excavator will have a good combination of price and reliability. But digging deeper, which excavator you choose will also depend on the attachments offered and size — for example, do you need more maneuverability or power?
Ready to Add the Best Mini Excavator to Your Fleet?
Mini excavators are growing in demand and could be a great addition to your equipment rental business. It’s tough to beat their advantages over large machines, including the ease of transport and operation.
The Quipli team specializes in automating your equipment rental business so you can spend time on what matters most. Quipli’s platform will streamline your inventory management process — reach out today to get a free demo.
Equipment rental insurance is a form of insurance that you can get if you rent out equipment to customers. It’s instrumental in helping avoid costly losses and downtime for your rental business.
Equipment coverage can insure large pieces, such as excavators, as well as the tools and inventory you rent out, such as post-hole diggers.
What Is Rental Equipment Insurance?
Insurance for rental equipment covers the items you rent out, such as tools, equipment, and other inventory. Rental business insurance can be bought to cover any kind of equipment.
Having rental equipment insurance coverage will protect you in case something happens to your equipment, such as theft or a major accident. There are also other options for your business that’ll cover you beyond just lost equipment.
When it comes to rental equipment insurance, you’ll also have policy specifics depending on the equipment you rent out. If you offer heavy equipment, your insurance policy may assume that you’re renting to individuals or companies that are insured and licensed.
There may also be limits on how long you can rent out equipment, as the longer the rental period, the greater the likelihood of damage or loss. You can help protect yourself with proper insurance coverage and the rental contract you use, which can stipulate renters liability insurance for your customers.
Types of Rental Insurance
Equipment rental business insurance is available for various types of equipment. There are different coverage options and plans based on the equipment you rent out.
Naturally, rental insurance will vary by business. For instance, insurance types and coverage options will be different for a party rental business than for a golf cart rental business. Heavy equipment rental insurance will have different options as well.
Here are some key types of insurance for equipment rentals that you’ll likely encounter on the market.
Floater Coverage
Also known as inland marine coverage, floater coverage is a type of add-on coverage that covers rental properties not covered by other policies. This includes property you rent from others as well as newly acquired rental equipment.
Commercial Property Coverage
Commercial property coverage is a broad category of insurance that, in some cases, covers the things you own and use as part of your business along with your company’s physical premises and related real estate. This could include office furniture, computers, and non-rented equipment and appliances.
Commercial property coverage covers rental businesses in the event of damage or loss, such as employee theft.
Commercial Auto Coverage
Commercial auto coverage is for the vehicles you own and use as part of your business, such as delivery vehicles. This will cover vehicles you rent, lease, borrow, or own.
Umbrella Coverage
Umbrella and excess coverage will protect you if a claim goes beyond its limits. For example, if you have a major liability claim from a lawsuit, umbrella coverage will kick in if the claim exceeds the limits of the primary general liability policy.
Other Coverage Options
There are also other specialized insurance services offered to rental businesses, such as business income coverage. Business income coverage covers lost income if the business can’t conduct business due to a covered event.
For example, business income coverage for off-premises utility services will replace business income if they can’t conduct business due to unexpected utility interruptions.
Another common example is property-in-transit coverage, which will cover your rental property if it’s damaged during shipment.
What Does a Basic Equipment Insurance Policy Cover?
There are two main types of rental equipment insurance coverage: covered property and replacement cost. Covered property covers anything you rent out, while replacement cost coverage is for equipment that must be replaced.
Good basic equipment insurance should include broad coverage, protecting such things as lost or stolen equipment, equipment damaged due to misuse or weather, and cleanup for covered incidents.
Covered Property
Covered property is coverage for pretty much anything you rent out. For example, covered property coverage would cover flatware, serving utensils, and party supplies for a wedding rental company.
Other items that would fall under the heading of covered property include wood chippers for a lawn equipment rental business and video recording equipment for a media rental company.
Replacement Cost
Replacement cost coverage is for equipment that becomes irreparably damaged or lost. Replacing such equipment can be costly. This coverage can ease the financial burden by providing some or all of the money required for replacement.
General Liability Insurance for Equipment Rental Businesses
Insurance for equipment rental generally includes covered property and replacement cost coverage, but you’ll also need general liability insurance to protect you beyond rental-specific issues. General liability coverage will protect you from lawsuits customers file against you.
Lawsuits can arise for a variety of reasons. For example, a client that’s injured while using equipment they rented from you may file a lawsuit to cover their injuries and distress. Similarly, a property owner might sue you if a piece of equipment you rented out to them accidentally destroys a building. General liability insurance can help protect your business from having to use valuable resources to fight such lawsuits.
General liability coverage can protect your business against lawsuits, damages, and lost equipment. But it can also protect against negligence, slander, errors and omissions, and contractual liability.
The risks of owning a rental equipment business are unique and diverse, but good insurance can greatly hedge many of them. As mentioned, a good rental contract can also protect your business from loss.
It helps to know what your insurance covers and what it doesn’t.
For example, what happens if a customer simply doesn’t return the equipment they rented? What happens if they lend out the equipment to someone else and that person damages your equipment or injures someone? These are the kinds of questions you’ll want to think through and address with your insurance agent.
Make Rentals Easy With the Right Partner
The less you have to worry about as an equipment rental business owner, the better. Proper insurance coverage can ease your mind regarding what might happen to your equipment when it’s in customers’ hands.
Another way to reduce your business-related stress is a proper rental inventory management system. Quipli offers a platform that does the hard work of managing your rental inventory for you. Contact us today to get a demo.
A good equipment payment calculator will allow you to customize all aspects of your loan — helping you figure out exactly what works for you.
Many banks offer equipment financing, and some financing companies specialize in loans for construction and heavy equipment. Before contacting a lender, you can use an equipment finance calculator to get an idea of what to expect.
The key inputs for a heavy equipment loan calculator are similar to those for many loans — the amount financed, the interest rate, and the loan length (also known as the loan term). However, there are some nuances specific to the equipment financing industry that you should know about.
Free Online Construction Equipment Loan Calculator
Here’s a free online equipment finance calculator that can help you see how your payment will change based on the various inputs you choose, such as interest rates and loan terms:
How Equipment Loan Payments Are Usually Determined
Three key inputs will largely determine your loan payment:
The amount you’re financing
Your interest rate
The loan term
When using an equipment loan payment calculator, you’ll find that the more money you finance, the higher your payments will be. This reality is true for interest rates as well — the higher the rate, the higher the payment.
However, the payment amount will go down if you increase the loan term (although you’ll likely pay more interest over the life of the loan).
Let’s look at the three key elements in more detail:
1. Equipment Loan Total Amount
The loan amount will be the amount you’re financing, which is generally the total purchase price of the equipment, less any down payment you make.
Equipment costs in your industry will largely determine the amount you need to finance. Other factors that will determine the amount you can borrow include the lifetime value of the equipment and whether it’s new or used.
Some equipment loans are for $5,000 or less, while some lenders have minimums on the amount they’re willing to lend for equipment loans, such as $10,000 or $25,000. Typically, the lower the amount you’re financing, the higher the interest rate. If you are financing $5,000, the rate will tend to be higher than if you’re financing $50,000.
2. Interest Rates
Interest rates will vary based on the industry and equipment you’re financing. They can be anywhere from 2% to 20%. If you’re required to provide a personal guarantee, your credit score will also play a part in determining the interest rate.
Other factors that play a part in the interest rate calculation are your company’s financials, such as annual revenue and length of time in business. The type of equipment and its lifetime value will play a role in the interest rate as well.
Resale value is also a consideration. If the equipment holds its value well, you may be able to get a lower rate. The lender might see the loan as less risky when compared to one for equipment that depreciates quickly.
3. Loan Terms
The loan term is the length of time of your loan. This duration for equipment loans tends to be between two and seven years. Some lenders may have a cap of five or ten years on the terms they’re willing to offer for equipment loans.
Generally, the longer the loan term, the higher the interest rate tends to be. Thus, if you’re financing a piece of equipment for two years, the rate should be lower than if you selected a loan term of seven years.
Note that you can often pay the loan off early or make additional payments to shorten the loan term (and save interest). However, some financing companies may charge a prepayment penalty if you decide to pay off the loan early. Make sure to factor that cost against any interest savings when you’re considering paying early.
What You Should Know About Equipment Financing
Even the best equipment financing calculator won’t be able to account for your specific situation or the special requirements that a lender might have.
Minimum Requirements
Equipment lenders may have minimum requirements for your business, such as thresholds for annual revenue and length of time in business. For example, a lender may require that you have at least $25,000 in annual revenue and have been in business for at least six months before considering you for a loan.
Other key requirements include minimum credit scores and required down payment amounts, which may vary between 5% and 20%. Also, recall that some lenders may have a cap on the loan term, such as 48 months, and minimum loan amounts, such as $25,000.
Special Requirements
Some lenders will also allow for special repayment schedules, such as weekly or bi-weekly payments instead of monthly ones. They may also specify a balloon payment that’s due every 12 months or at the end of the loan’s term.
Other things to watch out for when using a construction loan calculator include upfront charges by lenders, such as origination and application fees. Don’t forget to ask about prepayment penalties or potential discounts for early payoffs.
Examples of Typical Loan Payments for Construction Equipment
So what do the numbers generally tend to look like? Here are a few examples, based on the average cost of common types of heavy construction equipment, based on our calculator.
These numbers assume a 36-month loan repayment period, an interest rate of 7.5%. Total loan amounts are based on the mean average cost for each type of equipment.
Prices can vary significantly, but these numbers can give you an idea of around how much you can probably expect to spend each month. Need more help on pricing? Explore our how to value a rental business guide.
Financing Equipment for Your Equipment Rental Business?
If you’re looking to add new equipment to your rental business and increase your profit, Quipli can help. Quipli’srental eCommerce platform helps manage your inventory and website to make it easier for customers to find what they need.
Our all-in-one software also makes it easy for you to manage your invoices and orders. You can find out how Quipli makes the sales andinventory management processes easy by booking a 15-minute demo.
After starting a rental business and running it for years, you may eventually find yourself thinking about selling it to someone else.
To sell a business, you’ll need to get an accurate determination of how much the business is actually worth. There are several different valuation methods that you can use to do this.
Types of Valuation Methods
Various methods can be used to value a rental business. Three of the most common methods are asset value, future earnings, and comparable sales.
Asset Methodology
The asset methodology for valuing a rental business uses the value of the equipment you own.
This is the fair market value of all the assets you possess. Thus, you’d find the value of each piece of equipment and add them all up. Each asset’s value can be calculated based on what similar pieces of equipment sell for on used equipment marketplaces.
If a particular asset is no longer on the market, you may have to use another method to value it, such as figuring out what it would take to build your equipment to the current specifications with today’s price. Similarly, if you have a customized asset, you may need to calculate what it would take to add the same customizations in today’s dollars.
Future Earnings Methodology
The future earnings methodology calculates your company’s value based on its current and future earnings. This involves estimating what your business will likely generate in the future and discounting it back using a discount rate.
This method is also known as a “discounted future earnings” valuation, as it requires you to forecast your rental company’s future revenue. After modeling earnings for each period and calculating a terminal value, you discount the amounts back to the present to get the current value.
Comparable Sales Methodology
Comparable sales valuations look at what similar businesses have sold for recently. This generally involves calculating the valuation multiples for past business sales. The ideal multiple will be based on the specific industry.
For example, if your business generates $2.2 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) and the average EBITDA multiple that equipment rental businesses sell for is 8, your valuation would be roughly $17.6 million.
While the EBITDA multiple is widely used, you may also see other multiples applied, such as an earnings multiple, sales multiple, or EBIT (earnings before interest and taxes) multiple. Some comparable sales methodology valuations may include an average of various multiples.
Factors Impacting Your Valuation
Many factors can come into play when valuing your equipment rental business. Most of these are things you might expect, like revenues and profit margins, but there are others worth highlighting.
Amount of Sales
To start, you’ll need to know the estimated amount of sales you’ve had — specifically, your average annual sales figure. Generally, the higher the sales, the better.
Total Profit
Total profit is another figure you’ll need to arrive at an accurate rental business valuation. This is the average annual net profit for your business. Once again, the higher, the better.
Recent Growth Trends and Future Growth Projections
The continued growth of your sales and profits will also play a key role. Is your business slowing down, or have sales and profits been steadily on the rise? Is your business expected to keep growing with new sales channels or partnerships? These are all questions worth knowing the answers to.
Growth in the Number of Sales (and the Origin of That Growth)
If your revenue is on the rise, where is the surge coming from? Maybe you’ve been more effective with marketing, or perhaps the sales growth was short-lived. Prospective buyers will want to know what’s behind your growth and whether it’s sustainable.
Market Positioning
Where are you regarding market share for your industry? If you’re the market leader, do consider whether you have any competitive advantages that will let you keep that position. If not, look for opportunities to claim more market share.
Geographic Location
When it comes to the location you serve, it’s wise to determine whether you have opportunities to expand your current geographic footprint. Being located in a fast-growth area for the equipment you offer can be a great advantage.
Systems and Processes in Place for Running the Business
Lastly, think about how involved you are with your business. Do you have systems in place that let your business run efficiently without a lot of labor hours? You might have opportunities to automate parts of your business, such as inventory or rental management, for superior efficiency.
Selling Your Equipment Rental Business
When it comes to selling your rental business, you have several options.
Business Brokers
Business brokers are great if your company generates $1 million or less in annual revenue. Business brokers specializing in the rental industry can be found on various online marketplaces.
Merger and Acquisition Advisors
Merger and acquisition (M&A) advisors are suitable for businesses with revenues between $1 and $50 million. A good M&A advisor will help you find buyers, negotiate terms, and structure a favorable deal.
Investment Banks
Investment banks are ideal for larger businesses, especially those with more than $50 million in annual revenue. Investment banks specialize in tracking down big buyers and handling the terms of the deal.
If you have a rental business but are considering breaking into a different industry, you’ll first need to figure out what your business is worth. This is true if you need a business appraisal as well. A precise valuation will ensure you get the correct amount for your niche business.
These well-protected businesses sell well and often, making it easy to find an estimated value for your company. A qualified broker or advisor can help you figure out your valuation and connect you with prospective buyers offering what your business is worth.
There are also a few simple steps you can take to help boost your valuation. A great place to start is to make sure you have as many tasks automated as possible, including your rental and inventory management processes.
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