If you own a small manufacturing company and you are looking to improve one or some of the machines on your shop floor, and you are looking a plastics and blow molding machines, buying new may be the best choice. There are many advantages to having a brand new machine, and ways it can help the business. Here are some of the things to consider when you are ready to finance the new machine that you need to continue operations.
Explore Leasing Options
Some machine manufacturers have options to lease machines. Times when this may be a better option for your needs would include:
- Your need and projected use for the machine isn't established
- Machine needs may change
- Credit availability concerns you
If you don't know how often the machine will really get used, if this is the type of machine that you will want in the long term, or if you have the credit to purchase this costly of a machine, leasing may be a better solution for your business at the time.
Evaluating Applicants Credit
The first step of financing will be evaluating the credit of the applicant. The business owner or owners that apply need to not only have good credit, but enough credit and a practical debt to income ration. The amount of debt that the company has already took on, profits, profit margins, and the history they have borrowing money will all be a factor. If two partners don't share the same credit rating, it may be time to have one apply solo.
Think of Long Term Use
Buying a new machine can come with many benefits that you will enjoy when you are trying to run a business, like:
- Machine warranty for manufacturer problems
- Support for errors or problems
- Professional installation and setup
- Reliability and longevity
If you don't have time to try to fix a new machine, dealing with software updates, or having time down because of complications, a new machine is best.
Financing a new machine isn't just helping you get a new machine in the shop, but it's also making an investment to help improve the business. This machine will become an important asset that also improves the value of your business, because it becomes an asset that you own. Talk with the machining company to get the cost, and find out what plastics equipment financing options are available to purchase a brand new model.Share