There are many people who consider starting an air compressor hire business. If you are one of them, you need to know how to do this correctly. There are a number of steps and tips that you should know about which will help you start your business correctly.
The Legal Requirements
One of the first points that you need to consider when looking at starting an air compressor hire business is the legal requirements. The exact requirements will vary depending on where your business is going to be located. It is recommended that you contact your local authority to find out the exact requirements or get in touch with an attorney.
There are some general requirements that all hire businesses need to adhere to. The first is to set up a company and it is recommended that you look at a private limited company. To set up this company, you will need to have a business name which is registered with the company registrar as well as the documents showing the structure of the business.
Look At Insurance
Many people do not realize that their hire business needs to have certain insurance coverage to operate correctly. The insurance you get will need to cover your air compressors and offer public liability insurance. The coverage that is offered will vary depending on the policy that you take so you need to be careful.
If you are unsure about the insurance that you need, it is recommended that you contact an insurance specialist. A business lawyer should also be able to help you determine the basic insurance that you need. However, they will not be able to help you acquire the insurance that you need.
Determine The Type Of Renting You Offer
There are 2 different types of renting that you can offer your customers and you need to choose which one you are going to work with. It is possible to offer both, but you will need to be prepared for the legal requirements of each. The renting options that you need to consider are contract hire or hire purchase.
Contract hire is the most commonly used by air compressor businesses. This type of renting allows the customer to hire the air compressor for a specific period of time. You will be allowing the customer to use the equipment for this period of time for a set fee.
Hire purchase is different as the item will eventually belong to the customer. With hire purchase contracts, the customer will pay a set amount each month for the air compressor. At the end of the contract period, they will own the air compressor.
Most people who look at starting an air compressor hire business will look at contract leasing. This ensures that they continue to have air compressors in their inventory and will lower their costs. With hire purchase, you will need to buy the air compressors and then sell them on which may not be financially viable for everyone.