Just a winter ago, we ended up getting an amazing deal on IBC totes from a distributor that was only a couple of hours' drive away. Rather than having to pay hundreds on a bulk container, we ended up paying several hundred for several.
The fact is, IBC totes have plenty of uses for a farm. You want to be fully aware of them to ensure that you can get the most value out of them.
Here are some of the things you should be looking for.
What Are They?
IBC totes, like those offered by Verde Trader, are effectively large containers that are meant to hold a lot of liquid or granulate substances.
The IBC stands for "Intermediate Bulk Container." IBC totes can effectively be pallet mounted and they are usually made out of extremely durable and high-quality industrial-grade materials. Because of this, they are meant to be stacked and they can be easy to move around as long as you have a forklift or a comparable vehicle.
These totes can be both rigid or flexible depending on your needs. They can typically hold anywhere from 285 to 2930 liters of substance. You'll find totes made out of a range of materials including some out of aluminum, wood, plastic, metal, or a combination of them.
The ones we specifically purchased were made out of hard plastic and they were enclosed in metal cages. This gives us confidence in their durability for long-term usage. As farmers, it's very critical to find ways to do things much more efficiently and effectively.
With an IBC tote rental program, you can get all of the benefits that come with using stainless steel IBC totes without having to spend all of the money upfronts to buy them. This gives us a lot of advantages and solves a lot of problems including:
- Dealing with unexpected custom orders
- Fluctuations with production
- Having unused totes sitting there going unused
- Limited cash
By leveraging a well-managed IBC tote rental program, it can deliver all of the many benefits of using high-quality IBC totes without having to go out there and spend all of the money to purchase them. Perhaps what's even more important, renting these totes is very simple. A lot of the time you can rent a tote and see it within days rather than weeks. There are numerous benefits that you can get from renting a tote rather than purchasing it. Below, you'll read about some of the major benefits of doing so.
Benefits Of Renting Totes:
1. Conserve Your Working Capital
Perhaps one of the best benefits of renting one over purchasing it is the ability to get all of the benefits a tote offers without having to fork out the cash for it. Because you have no down payment and you can leverage the low and affordable monthly rates, it can help your company leverage its cash on hand for growing your company instead.
2. Immediate Results
With a rental program, you can get everything set up within minutes. This is going to enable you to get started right away which can keep you from having to save up enough working capital to get started.
3. Less Obsolete Equipment
You won't have to worry about your bulk containers becoming obsolete in the future. You'll always be able to utilize and leverage the best equipment that's on the marketplace. When you purchase them yourself, you end up stuck with the totes which can leave you with outdated equipment in the future.
4. Better Flexibility
You'll have much better financial flexibility when you are renting out totes both short and long-term. You can boost productivity while lowering your costs and the need for investment in a product.
5. Tax Savings
With renting stainless steel IBC totes, you can classify it as an operating expense which will give you much better tax savings than if you were to purchase them and have your assets depreciate.