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.
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.