Whether you’re looking to launch a manufacturing small business or seeking ways to finance onshoring your global production facilities, there are many obstacles to overcome when it comes to purchasing heavy equipment. Discover how you can purchase the specialized equipment you need for your manufacturing facility without draining your working capital.
Instead of paying for a long-term lease or attempting to raise the funds for an immediate, outright purchase, an excellent equipment financing strategy is lease-to-own financing. When you choose a lease-to-own strategy, you receive the benefits of owning and leasing.
Enjoy all the perks of owning your heavy equipment. Whether you need to make modifications or are only interested in OEM operations, you need to power up your equipment from day one. You’ll also want to stop making payments at some point, unlike a lease. Leasing requires you to make monthly, quarterly or annual payments every single year you wish to operate your equipment. Owning equipment offers long-term savings.
Leasing, however, prevents you from draining your working capital in massive down payments and other fees. Some leases offer no money down options, so you can spend all your working capital on payroll, inventory and other investment expenses.
At the end of the lease, you’ll have the option of purchasing your equipment. While you pay some interest during the lease period, the lump-sum payment at the end of the lease is typically significantly lower than the full cost of the equipment.
The best lease-to-own options for manufacturing equipment offer flexible payments as needed. When you have a slow month or an unexpected expense arises, work with a financing company that understands the difficulties of your industry. When business is booming and the profits are rolling in, work with your lender to consider making additional payments.
There are a wide range of interest rates, lease lengths and other features, so comparing prices and loan providers is an essential part of finding the best lease. Work with a lender that offers excellent customer service, generous rates and flexibility when your manufacturing company experiences emergencies.
Even the most specialized equipment can become approved for a lease-to-own setup. Don’t let a lack of funding prevent you from opening shop or spreading out into different manufacturing procedures. Compare rates of heavy equipment financing and find the best lender to work with you. Whether you choose a lease-to-own strategy, traditional lease or other financing option, start your manufacturing process quickly with little money down.