As a manufacturing business owner, you know that having up-to-date equipment is crucial to ensure smooth operations. However, purchasing new equipment can be expensive, and not every business has the cash on hand to buy what they need outright. This is where equipment funding comes into play. In this blog post, we'll explore how equipment funding can be a solution for high monthly payments in manufacturing companies.

What is Equipment Funding?

Equipment funding is a financing option for businesses to obtain the equipment they need without the high upfront costs. It allows companies to acquire equipment through a lease or loan that can be paid off over time. Equipment funding can be a great option for companies that need to keep their working capital in reserve or are unable to obtain financing through other methods.

The Advantages of Equipment Funding

One of the most significant advantages of equipment funding is that it can help reduce monthly payments. By spreading out the cost of equipment over a longer period, companies can reduce their monthly payments and keep more cash flow available for other expenses. In fact, according to the Equipment Leasing and Financing Association, over 78% of businesses that use equipment financing choose it to preserve their working capital.

Another advantage is that equipment funding can help companies stay up-to-date with the latest technology. Manufacturing companies need to keep up with advancements in technology to stay competitive. However, purchasing new equipment outright can be cost-prohibitive. By choosing equipment funding, companies can upgrade their equipment regularly without the burden of high upfront costs.

Finally, equipment funding can be more accessible than other financing options. Many traditional lenders are hesitant to finance equipment, seeing it as a high-risk investment. However, equipment funding is specifically designed for the acquisition of equipment, and lenders are often more willing to provide financing for this purpose.

How to Obtain Equipment Funding

To obtain equipment funding, businesses can work with a manufacturing lender who specializes in equipment financing. The lender will evaluate the company's financial standing, credit history, and other factors to determine if they are eligible for financing. If the company is approved, they can work with the lender to select the equipment they need and decide on a financing plan that works for them.

At Manufacture Finance, we specialize in providing equipment financing to manufacturing businesses. Our team of experienced professionals can help you obtain the equipment you need without the burden of high upfront costs. Contact us today to learn more about our financing options and see how we can help your business reduce monthly payments while staying up-to-date with the latest technology.