When manufacturing machinery shuts down, so does business. Huge delays in operations can cripple production, kill efficiency, and bring your cash flow to a stand still.
With peak manufacturing season in full swing, and the costs of manufacturing equipment rising with each passing year, knowing how to replace equipment quickly and without breaking the bank is a must.
Here’s everything you need to know about how to make replacing manufacturing equipment faster, easier and a whole less expensive.
The #1 best way to make the process easier for yourself is to calculate the true cost of replacing your piece of equipment.
First, determine if your equipment insurance will cover the entire cost of the replacement. Most manufacturers are surprised to learn that it doesn’t. Rising machinery prices over time, and modifications to the equipment after purchase are two of the most common reasons for this.
Next, calculate the price of shipping, installation and maintenance costs necessary.
Lastly, decide whether you want to fund your replacement out-of-pocket, or with borrowed capital. The decision will greatly affect how fast and inexpensive the replacement process will be.
When machines shut down, you need to act fast. The longer you wait, the more money you lose, and the more operations could go haywire as a result, making financing your new machinery even more difficult.
Coming up with the capital you need on your own while ensuring your business has the cash flow it needs for routine operational costs can take time.
Borrowing capital from a bank is likely to take even longer. Mountains of paperwork and endless red tape will keep you waiting anywhere from weeks to months before you see funding for your new equipment.
Fortunately, expedited manufacturing equipment financing through National Business Capital offers funding in as little as 48-72 hours.
Forget the paperwork, red tape and long wait times – NBC deals with that for you, and gets you the funding you need, exactly when you need it!
Have you heard of the new IRS Section 179 business tax deductions?
They allow for business owners to completely write off any equipment purchases made in 2018, with 40% bonus depreciation.
NOTE: This will only be available to business owners that make equipment purchases before the year ends. The code will change in 2019 to offer up to 10% less savings on returns than possible this year.
What’s more, business owners who use financing to purchase their equipment will not have to pay out of pocket for the up-front costs and insurance that is typically required.
Don’t get caught without functioning machinery during the busiest time of the year.
For the fastest financing options available for manufacturers, call (877) 482-3008 for a free consultation, or apply online by filling out our 1-minute application.
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.