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Written by Bruno Jouassin
29 August 2019

A few financial packages exist to acquire a dismountable modular building:

  • Builder rent for short-term needs (less than 5 years)
  • Leasing when you cannot invest immediately but you want to have this option later
  • Purchase for industries that should and can invest

Does the normative constraint has an influence on the financial packages that you should choose? Follow the guide.

 

Advantages and disadvantages of renting

For an industrial company, usually it is easier and quicker to rent its dismountable modular building. It requires less commitment in duration, comparing to purchasing. It is possible to adapt the duration of the rental contract to your need: if you are carrying out constructions in one of your buildings for example, you know more or less the constructions duration and you can choose a rental contract of the same duration. Flexible and efficient.

The choice of renting can answer to a need of specific assignment in your operations budget: this will be considered as an expense if you choose to rent contrary to the purchase that represents an investment.

The disadvantage of renting is that if your needs persist or increase as we go along, you can go over your initial contract. This could become, in the long run, more expensive than a purchase.

Under a normative constraint, the flexibility that allows renting is interesting: you will probably need to revise your plants quickly to respect the norm. However, a purchase requires a time of consideration. Usually when you are facing a strong normative constraint that directly affects your business; it is not the right time.

Choosing the rent does not prevent to purchase the dismountable modular building afterwards. If you hesitate, opt for a leasing with a purchase option.

Advantages and disadvantages of purchase

If your storage needs are likely to stretch for more than 5 years, investing in your dismountable modular building can be a good option.

Normative constraints are hardly ever ephemeral. In the industrial sector, they even tend to multiply and strengthen. If you cannot carry out constructions in your fixed buildings to respect applicable norms, opting for the purchase of your dismountable modular building seems judicious.

Purchasing when the need is recurring, allows you to limit greatly the costs: no banking intermediary for leasing or flexibility costs for renting.

Nevertheless, you need to have the financial capacity to proceed to the investment. It is the biggest constraint. If you are convinced that you need a dismountable modular building for the next 5 years, but you cannot invest in a purchase today, the leasing solution is ideal.

Match result?

The normative constraint has a weak impact on your decision to purchase or rent the structure. The important thing is to evaluate the duration of your need, to anticipate to a 5-year horizon. Then, it is Locabri’s role to offer you the most interesting financial proposition.

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