Having to negotiate the after effects of a debilitating pandemic and additional economic challenges such as interest rate hikes, loadshedding and reduced consumer spending have compelled businesses to find ways to tighten their belts.
For those that use material handling equipment in their day-to-day operations, the hefty price tags that come with the outright purchase of new machinery can deal yet another heavy blow to their already fragile recovery processes.
In fact, many choose to refurbish and maintain their equipment in-house to stay afloat, with a view to sweating their assets. This, however, is not a sustainable solution as it increases maintenance costs and downtime, which has a negative impact on business’s operations and overall operating expenses.
Cognisant of the changing needs of its customer base, CFAO Equipment SA, which is part of the CFAO Group and wholly owned by Toyota Tsusho Corporation, offers short- and long-term rental agreements across its diverse range of material handling equipment. These can vary from hourly or 1-day short-term rentals up to 72-month long-term rental agreements on equipment.
Bianca Smit, National Operations Manager at CFAO Equipment SA, says the volatility of the market has seen requests for rental agreements increase significantly.
“This is because rental agreements allow customers to safeguard their cash flows and focus on the core operational aspects of their businesses instead of worrying about the productivity and performance of their equipment.
“It also gives customers the peace of mind that comes with knowing that the equipment can be returned to the supplier if there is an issue – as opposed to buying the equipment and having to take responsibility for the added costs associated with repairs and maintenance when something goes wrong.
“With our focus on establishing trusted partnerships and providing quality equipment solutions that keep costs down, we have come up with flexible rental agreements that are tailored to meet each customer’s specific needs,” adds Smit.
As the first global distributor to offer and supply rental agreements on material handling equipment, CFAO Equipment SA – which has Toyota Material Handling and Heavy Lift under its umbrella – has vast industry expertise and understands what its customers require to drive productivity and reduce instances of downtime.
As a supplier, we are able to offer tailored solutions to support customers’ individual needs. With our in-house finance support, we are able to structure long- and short-term deals that take the useful life of the asset as well as the application and environment it will get exposed to into consideration.
With the rise in popularity of rental agreements and as many as 70% of customers reaping its many benefits, CFAO Equipment SA has cemented itself not only as a pioneer in service solutions, but a leader in material handling in southern Africa.