If you are in the construction industry, you might have considered renting heavy construction equipment for your projects rather than buying the equipment outright. This can be a smart decision for your company, since it can allow you to use all of the best equipment out there without having to pay full price for it. However, one thing that you probably haven't put too much thought into is how you will pay for your equipment rental.
Some companies will accept cash, and many accept debit cards. However, a better option is to use a company credit card to rent your heavy construction equipment. These are a few reasons why.
1. Protect Yourself and Your Deposit
First of all, you probably already know that using a credit card is a good way to protect yourself. If you feel that you are unfairly charged, you can always dispute it with your credit card company. This is also true when it comes to the deposit that you put down when you rent equipment; many companies will require you to pay a security deposit, which you should get back when you return the equipment in good condition. If you pay with your card, you'll be able to file a dispute and get your money back if you feel that your deposit is held when it shouldn't be.
2. Keep Your Company's Capital Free
One of the benefits of renting equipment is the fact that you don't have to spend your company's capital. Unfortunately, the deposits that are required by many companies can still take up a lot of company capital, which you might need for something else. By using a credit card, however, you won't have to worry about the funds in your company checking account being held. Then, you'll have your capital available if you need it.
3. Make Expense Tracking Easy
It is important to keep up with all of the expenses that you incur for your company so that you can use this information to file for business deductions when you do your taxes. This can be challenging to do, and you could find yourself losing your receipt or forgetting about how much you spent on your rentals throughout the year. If you pay for them all with your company credit card, however, it will be easy to get this information off of your credit card statements.
As you can see, it's always a good idea to use a company credit card when paying for construction equipment rentals. Therefore, this is something that you should think about doing next time that you rent heavy construction equipment for your business.