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Equipment as a service is a way to gain access to certain types of equipment without needing to purchase it yourself. It’s very similar to renting equipment, but instead of just renting and then returning the equipment, you’re paying for both the equipment and upgrades and maintenance. Here are three benefits of equipment as a service.

1. Staying Abreast of New Technology

When you use equipment as a service, it’s easier to keep up with technological advancements. Purchasing your own equipment means you need to upgrade it periodically. Sooner or later, your equipment will likely become obsolete. When you rent or lease your equipment instead, you can return it and access newer equipment versions when you need them.

2. Saving Capital

One of the biggest benefits of equipment as a service is the ability to save capital for other expenditures or savings. You’ll save money on equipment acquisitions, maintenance and upgrades, which means you can put that money toward various projects or expansions. Spending less on these aspects of accessing and using equipment will also allow you to improve your spending flexibility and planning, gain various tax benefits and gain access to more equipment more often if you need to.

3. Managing Risk

Not only does equipment as a service make spending and performing upgrades on equipment easier, but it can also help you better manage your risk. You can customize the financing of your equipment leases to an extent and the financing options typically help you manage your inflation risk better than investing in purchasing equipment yourself. Many service providers will assist you with asset and obsolescence management as well.

When you use equipment as a service, you’ll be able to save money to put toward other operations, leave maintenance and upgrades to the service provider and always have access to the latest technology whenever you need it.