Why is leasing machine shop equipment the best option for a machine shop? What does leasing do for you?
It’s no question that equipment can be one of the more vital parts of your business, allowing you to provide the best possible service. This is especially true in the case of a machine shop, where the quality of your expensive, intricate equipment can determine how quick tasks get done and how efficient they are completed.
With a machine shop, you offer services based off of the skills of your workers and the equipment they use, so it stands to reason that you get good equipment. However, putting good equipment in any business can be difficult, especially when you’re dealing with putting capital equipment in your business.
Capital equipment is simply classified as very expensive equipment, and when running a business you already have so many large expenses to deal with like hiring employees and owning a base of operations.
Adding the equipment expenses onto this can be fairly difficult to handle, which is why business owners generally look into different options as far as how to get their equipment, especially when dealing with capital equipment.
Many machine shops look for good ways to get this pricey equipment, like looking at leasing machine shop equipment or taking out a bank loan so they can afford that equipment.
Purchasing Equipment with a Loan
Many businesses would rather go through some form of purchasing because they want the ability to fully own their equipment, throughout the entire time and not have to rent or be loaned the equipment itself. However, it’s easy to see that overall, purchasing equipment isn’t helpful, especially for capital equipment.
The initial purchase is tough enough to deal with, spending all sorts of money to get that equipment, but what happens when you inevitably have to keep paying for that equipment? When dealing with complex, intricate machine shop equipment, it’s not guaranteed to last very long, especially when you’re constantly using that equipment.
Over time, when you finally reach that point, you can try to repair the equipment, but generally you end up paying the full cost to replace the equipment. That’s quite a bit of money just to own and maintain your equipment, and that’s not a permanent ownership you’re dealing with.
That is generally made worse and not better with a bank loan on your equipment, because that means you’re dealing with interest as well.
You may not be paying for the equipment right off the bat, but you’re still worrying about that loan later on, and if you’re taking a loan on capital equipment, the interest rate will be high.
Dealing with paying that off later on can be tough enough, but if you have to replace the equipment and still have the loan, that can be a problem as well.
Leasing Machine Shop Equipment for a Company
Many businesses do decide that leasing is the better option simply because they don’t have to worry about any large payments, both in the initial purchase or down the road when dealing with the equipment.
Leasing is not you purchasing equipment; it means you pay for a service where you get equipment in your business no matter what. With an equipment lease, you pay a low flat monthly rate to have equipment in your business, making life much easier for you.
That way you don’t have to worry about large payments or interest rates, and you get your equipment repaired throughout the lease as well. Plus, you don’t have to pay a large amount of money to replace the equipment down the road.
When leasing machine shop equipment, business owners get the benefit of putting expensive equipment in their machine shop without having to worry about any downsides financially. To learn more about leasing machine shop equipment for a business, click here.