When we’re talking about machine tool financing, this can include quite a variety of individual pieces of equipment including but not limited to:
Water Jets, Turning Centers, CNC Machines, Turret Punch, Metal Shears, Boring Mills, Routers, Robots, Grinders, Lathes, Machining Centers, Lase Cutters, and many other forms of fabrication equipment and manufacturing equipment.
The more common the use of the asset in an industry, the more financing options there are likely to be for both new and used assets due to the size of the resale market which provides a lender or leasing company with a means to sell off the asset if required, which reduces their risk of providing financing in the first place.
On the flip side, any asset that is highly specialized for a specific application or custom built for your own unique requirements is going to be harder to finance, or at least have few financing options due to the potential lack of an established resale market for the asset.
Regardless if you require machine tool financing for new or used assets, the process for getting equipment financing in place is typically very fast and straight forward.
It starts when you give us a call so we can review your situation with you over the phone to determine what options are available to you. There is no credit check at this point and no paper work needs to be exchanged. The objective here is for us to have a clear picture of your particular situation and your commercial equipment financing requirements, and to complete this process with you in 15 to 20 minutes.
If you want to pursue any of the options we have provided or suggested to you, the next step will be to complete a two page application form accompanied by an invoice/estimate/quote from the vendor for the machine tool asset you want to acquire. Other information such as financial statements, contracts, and so on may be required as well, depending on the specific application. The application process typically can be completed in one day.
Once an application for machine tool financing has been submitted, the request is processed by the financing company in 24 to 48 hours. For larger requests or more complex transactions, the process can take a few days longer.
With an approval in place, the funding process can be completed immediately provided all required documentation is in order.
We have options for A, B, C credit profiles.
Businesses that are three years in business or longer will typically attract better rates and terms.
For A & B equipment financing approvals, lenders and leasing companies are looking for guarantor credit scores of 650 or higher on average.
For companies with a good credit and financial profile, new assets can be financed at or near 100% of the asset cost. And if you want to finance delivery, installation, and training costs, we can potentially secure greater than 100% of the asset purchase price.
With used equipment, the amount of leverage will range from 80% of the asset purchase to 100%, providing excellent loan to value ratios which allow for significant cash flow savings.
Machine Tool financing options can be in the form of an equipment loan, capital lease, or operating lease, potentially providing you with a number of different options to tailor your financing to your business needs.
With an operating lease, at least 10% of the purchase amount does not need to be repaid until the end of the lease term.
A capital lease functions very much like a loan for accounting and tax purposes and provides a nominal buyout cost at the end of the term.
Regardless of your machine tool financing requirement, we recommend that you give us a call so we can quickly go through your situation and discuss with you relevant equipment financing options.