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.
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.
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