What are my options for financing new industrial equipment?
- September 10, 2019
- Posted by: Admin
- Category: Services
In the increasingly competitive industrial sector, having advanced and adaptable equipment can be tantamount to securing an irreversible lead on the rest of the market. However, if it was that easy to update industrial assets whenever needed, every enterprise would do it. Cash flow issues traditionally restrict most businesses from purchasing uniquely expensive processing and production systems when needed.
The unique challenges of securing industrial equipment
Industrial and manufacturing operators face challenges like no other business owners – a high cost of production equipment across the board. No matter the industry, the unique nature and complexity of industrial systems means outright purchase costs are high. This has a notable effect on short-term cash flow, especially for smaller businesses.
Luckily there are other equipment financing options that aren't so demanding on short-term cash flow and still give operators access to production equipment needed.
How to finance asset purchases without compromising cash flow
SRO Technology understands that no two businesses are the same – that's why our specialists ensure that we can offer a range of financing options that suit your needs.
This offering enables customers to rent one or several assets from SRO for an agreed period of time. The process begins with our equipment finance team assessing your operations and the scope of future projects to determine ideal leasing timeframes. Thorough analysis ensures you pay for the equipment you need as you need it without wasting a dollar.
Commercial hire purchase
Hire purchase deals stipulate that a lender purchases equipment on behalf of its customers. The item will be hired back to the interested business over a period of time with agreed payment installments and interest. Customers will have full use of the asset during this term. Loanees take full control of the industrial system at the end of the contract if the total price of the equipment and interest charges have been covered. If not, businesses can potentially negotiate a new hire purchase deal.
These agreements work in similar way to renting equipment – customers pay a monthly fee for equipment needed. However, under operating leases businesses also secure the services of specialists to operate the asset within wider industrial processes as needed.
The Australian Bureau of Statistics seasonally adjusted figures for capital spending on equipment, plant and machinery increased by 2.4% between March 2018-2019. Are you ready to join other businesses nationwide in expanding operations? If so, contact SRO Technology for help today.