Category Archives for Manufacturing Equipment Financing
Machining Center Financing
“Machining Center Financing For New And Used Machine Centers”
Machining center financing is available for a wide range of machine centers including from 2 to 6 axis machines, horizontal machine centers, vertical machine centers, universal machine centers, and so on.
The basic criteria for financing both new and used machine centers would require the business to be at least three years in operation with annual sales over $250,000, and a guarantor with a credit rating of at least 650.
There are equipment financing solutions available for A, B, & C credit profiles with rates being higher for lower levels of credit.
On new equipment, it is possible to secure at or near 100% financing on new machine centers and if you have delivery and installation costs that you would like to factor into a loan or lease, the financing amount secured and funded can actually be more than 100% of the equipment acquisition costs.
For used equipment, its more likely that more of a down payment is going to be required. That being said, its still reasonable to expect to be able to finance 75% to 90% of the value of a used machine center.
The financing process for this type of manufacturing equipment financing typically takes 24 to 48 hours to complete once your application package is prepared and submitted. For larger sized deals, there may be more financial information required by the lender or leasing company to assess debt servicing as well as additional levels of credit review which typically will add two or three more days to the approval process.
Funding can occur immediately after the equipment financing documents are executed and returned to finance company providing for a fast turnaround which will allow you to get the asset working as quickly as possible.
Machining Center Financing Options Can Be Considerable
As long as the resale market is strong for machine centers, there are going to be several lenders and leasing companies that will be interested in funding these types of assets.
The reasoning here is that a strong resale market provides the equipment financing company with a clear resale option in the event that they have to liquidate a machine center.
And because a machine centers are capable for holding their value for a long time, this equipment can have considerable resale value which further reduces the credit risk to anyone looking at providing financing.
The opposite can also be true in periods of economic slow down where there can be lots of inventory on the market making it hard to sell used units for any type of predictable price. In these situations, lender options can be fewer and potentially harder to locate and secure as well.
If you are in need of machining center financing, I suggest that you give us a call so we can go through your requirements with you and provide equipment financing options for your consideration.
Lathe Equipment Financing
“Lathe Equipment Financing For All Lathe Types And Accessory Equipment”
Lathe equipment financing can be secured for different types of Lathe’s as well as the supporting equipment and attachments that can be required with certain setups.
In order to get a quote for Lathe financing, we would first need to have an idea of the type of lathe that you are looking at acquiring.
Ideally, if you have a written invoice/estimate/quote from a licensed dealer for a specific new or used lathe where the year, make, and model are provided along with the terms of sale, then we can provide a more accurate quotation.
Alternatively, if you can outline the price range, models, and years of age you are considering, then we can also provide quotations based on that information, knowing that any lathe you end up acquiring may be different that the preliminary information provided.
Once we have the lathe equipment acquisition information and a completed equipment financing application form, we can provide you with a financing quotation.
The requirements for manufacturing equipment financing are going to vary depending on whether the lathe equipment you are looking to acquire is new or used, the amount it will cost, your credit and financial profile, and your time in business.
Typically, “A” and “B” credit applications require time in business of at least three years and a guarantor credit score of at least 650.
As we mentioned above, lathe financing options are available for both new and used lathe equipment.
Financing for new equipment can be secured at or near 100% of the acquisition cost of the asset, and in cases where there are going to be costs for delivery, installation, and training, or some combination of these items, the financing amount may potentially be increased to cover these costs as well, providing more than 100% financing in some cases.
For used lathe equipment financing, the financing leverage that you can secure is likely going to be lower, but can still be as high as 90% of the asset purchase price.
Lathe Equipment Financing For Assets Acquired Through Dealers And Private Sellers
For the most part, lathe equipment will be acquired from a licensed dealer who is bonded and responsible for providing clear title to the purchaser.
And while this is going to be the preferred acquisition channel for any source of equipment financing, there are equipment financing companies that will also consider purchases from private sellers as well.
The financing options with private sellers will be few as now all equipment financing companies will consider a transaction such as this.
That being said, it still can be possible to arrange the financing. Just keep in mind that the application and approval process will take longer as the financing company will have to perform a search on the title of the asset to make sure that there are no outstanding charges registered against it.
And if there are registered charges, even if there is no balance payable, they will have to be removed before funding can take place.
So if you are looking to acquire lathe equipment and want to better understand your financing options, I suggest that you give us a call and go over your requirements with us on the phone and we’ll make sure you get all your questions answered.
Ironworker Financing
“Ironworker Financing For Both New and Used Ironworkers”
Ironworker financing from an equipment financing or equipment leasing source can be arranged in very short order for most metal working or fabricating companies out there.
From a manufacturing equipment financing or fabrication equipment finance point of view, most Ironworkers have a long useful life and can hold their value from considerable periods of time, providing good security value to lenders and leasing companies/
For smaller units where the cost is under $25,000, an Ironworker financing approval can be obtained in less than 24 hours as smaller financing amounts, especially on new equipment, are largely approved by the established credit of the business and the individual owners.
Even for used Ironworker equipment, the rates and terms that can be secured through an equipment loan or an equipment lease can be very competitive.
The main difference between new and used for financing equipment is that many equipment financing sources will require a larger down payment for used as compared to new.
But depending on the age of an Ironworker you want to acquire, the down payment may still be quite low for a used asset provided that it doesn’t have much age, comes from a well known manufacturer, and is in good condition.
Ironworker Equipment Financing Can Be Designed To Fit Your Business
The most common form of financing for an Ironworker is through an equipment leasing facility.
The added advantage of going to an equipment lease is that you have some flexibility into how the lease can potentially be structured.
For instance, you can get a capital lease that basically mimics an equipment loan from a payment and accounting stand point and at the end of the lease you can purchase the asset out right from the leasing company for a nominal amount, typically no more than $20.
You can also set up and Ironworker lease as an operating lease whereby at least 10% of the cost of acquiring the asset is not repaid until the end of the lease term.
There are a number of different ways to get an operating lease to either reduce payments and assist cash flow, or accelerate the write down of the asset for tax purposes.
One the cash flow side, the balloon payment at the end of the lease needs to be at least 10%, but with some lenders or leasing companies, it can be even higher, further reducing the amount of cash required every month to cover lease payments.
To reduce taxes, a short lease term can be selected which will allow the payments to be higher. And because the lease is structured as an operating lease, the full amount of the payment can be written off as an operating expense. This can can have a significant incremental tax effect during the life of the lease.
If you are in need of Ironworker financing and want to better understand your options, I suggest that you give us a call and we’ll go through your requirements together and provide equipment financing quotes or estimates for your consideration.
Click Here To Speak To An Equipment Financing Specialist For All Your Ironworker Financing Needs
CNC Machining Center Financing
Do You Need To Finance A New Or Used CNC Machining Center?
CNC Machining Center Financing is available from several different sources of equipment financing in Canada and the U.S.
This type of asset is a staple in parts manufacturing and comes in many different models and configurations.
Used CNC machining centers can also be financed, but the rates and fees are going to depend on the age of the asset, its type and model, and expected remaining useful life. Used equipment is more likely to have a higher down payment than new equipment as well as a shorter repayment period. Due to the recent recession, there is a larger supply of used CNC equipment that what you’d see in a growth economy and as a result, lenders are a bit more cautious with their qualifying and approval process.
That being said, CNC equipment in general are very strong assets to finance. The main issue these days is if you have below average credit or a business not yet turned around from the recent economic conditions, it will likely be a bit harder for you to secure different types of manufacturing equipment financing and the rates and fees related to what you do find are likely going to be higher than in the recent past as well.
If you haven’t identified a particular CNC machining Center to acquire yet, then we recommend that you give us a call so we can get you pre-approved for the financing amount you’re going to be needing. This gets 95% of the equipment financing process out of the way and allows you to focus on getting the best deal for the equipment you’re after.
Get CNC Machining Center Financing That Meets Your Needs
Or, if you already have a piece of CNC equipment that you have secured the rights to buy but now need capital to complete the deal, we can get equipment financing approved for you in a day or two, depending on the asset and the amount. For larger sized deals, especially for used equipment, the process may take a few extra days, but can still be turned around pretty quickly.
In either case, give us a call so we can quickly assess your requirements and provide relevant equipment financing options that we will review with you for your consideration.
Rapid Prototyping Equipment Financing
Does Your Business Need Financing For New or Used Rapid Prototyping Equipment?
While not a high volume asset, rapid prototyping equipment has a very large number of commercial applications including metal fabrication, automotive, dental, advertising, airline industry, medical suppliers, architects, and nearly any company that makes or manufactures retail consumer products.
Depending on the make, model, age, and technology, used assets can also be financed, provided that there is an established resale market for the unit in question.
Used equipment will also require a down payment ranging from 10% to 30% compared to new equipment that can be financed at or near 100% of the acquisition cost through insured equipment loan programs and lease financing facilities.
While there aren’t an abundance of equipment financing and leasing companies that will finance this particular type of asset, we do have equipment financing and leasing partners that can and do finance rapid prototyping equipment assets.
Get Rapid Prototyping Equipment Financing That Meets Your Business Needs.
If you’ve purchase prototyping equipment via a cash sale recently, then we can still finance the asset after the fact through a loan or leasing program, provided that the purchase was made within the last 6 months from a licensed vendor and you can provide proof of payment.
If you’ve got an item lined up that you want to acquire, the equipment financing process may take a week or more as once again this is not a high volume asset category so the financing companies that do consider these types of deals will likely do a more comprehensive review of the asset and resale market, especially if its a used item.
One of the best ways to get better terms, higher financing as a percentage of total cost, and getter overall rates is to have the manufacturer or dealer agree to help the financing company re-market the asset in the event that they get it back.
This does not have to commit the dealer or manufacturer to repurchase the asset or take over the equipment financing commitment, but it does obligate them to work with the financing company to sell the asset if required.
If you have a piece of rapid prototyping equipment that you would like to get financed, I suggest that you give us a call so we can quickly assess your requirements and provide you with relevant equipment financing options for your consideration.