When should you finance your industrial equipment?
- November 1, 2019
- Posted by: Admin
- Category: SRO Technology News
Reliable, high-performance machinery is essential to industrial operations, but this equipment is often expensive to obtain, and that investment could significantly cut into company profits. Financing equipment may be a good alternative to buying machinery outright, especially in specific scenarios. If the following situations sound familiar, you may want to consider financing your industrial equipment.
You lack sufficient funds to make an upfront purchase
Given the high price tag attached to some industrial equipment, buying a replacement and paying that cost in full isn't always practical. Many organisations simply will not have the funds available to make such an expensive investment at a moment's notice. Budgeting for industrial equipment purchases is difficult in the best circumstances, but becomes even more challenging when you don't have adequate time to set aside that capital.
Financing industrial equipment is a viable – and popular – option when there simply isn't any money to replace critical equipment that has broken down. In 2017 alone, Australian businesses spent $34.7 billion on financing new equipment, according to the Australian Finance Industry Association.
When the choice is between raiding whatever capital you have available or paying financing fees over a long period of time, the decision is clear.
You expect more financial flexibility in the future as business grows
Your organisation may have a tight budget right now, but you expect operations to grow in the coming months and years, along with your revenue. Some business leaders may be hesitant to agree to financing terms because they worry about locking themselves into a long-term contract. If you believe your business will be flush with more funds in the future, but you need new equipment to help push it to that level of success, financing that purchase shouldn't be too much of a concern.
With more financial flexibility down the road, a company can easily make regular payments or even pay off the remaining amount in one fell swoop.
You need to install or replace equipment without delay to keep operations going
In many cases, broken or malfunctioning industrial equipment cannot be ignored, as this machinery is essential to core business operations. Even a slight delay in productivity could have huge ramifications for the company's bottom line.
When time is of the essence, manufacturers and other industrial operators need to get production back online without delay. Financing those purchases helps get critical equipment up and running again even if there isn't room in the budget for it.
Regardless of your circumstances, SRO Technology can help you purchase the industrial machinery you need to keep your business going. SRO Technology has plenty of financing options to suit every organisation. Contact our team today to find the right one for you.