Machinery finance is the best option for your business when you need to buy some heavy machinery for your business. Taking machinery on a lease can cost you more and you need to invest recurrent costs on these machines as per the lease agreement. In this case, you can buy such machines by taking suitable machinery finance, and you can use such machines for your industrial production. For example, if the machine is expected to have a longer life and it does not require any replacement, then you can buy such machines with finance options.
Various types of Machinery Finance
There are various types of machinery finance and commercial loans available in the market and you need to choose the best lender for your business. You must check their license, certification, interest rate, hidden charges, and terms and conditions before you apply for a loan. Different types of machines cost you different amounts and you may choose some tailor-made finance solution for your business. There are lenders available who will evaluate your business and then disburse the loan amount according to your needs. Their executives will help you to buy heavy machines and they can also charge you a reduced rate of interest.
#5 Benefits of availing Machinery Finance
By choosing machinery finance, you can utilize the machines right away and you do not need to wait for a long time. Apart from that, you can use the machines right then and increase your ROI accordingly. Then you can pay the EMI from your income and you can go for a long term loan to avail low cost EMI. After a certain time, it is expected you will gain huge income from such machines and foreclose your loan with a one-time payment.
Here are five Benefits of availing Machinery Finance:
- Most of the lenders offer tax rebates on their machinery finance and you do not need to pay any tax on your EMI amount. You can simply deduct the EMI amount from your annual taxation and avail the rebate on your annual taxes.
- You can increase your business assets by availing machinery finance. Leasing machines will increase your burden and you cannot count such leased machines as your assets. But when you buy heavy machinery for your industry, you can add them as your lifetime assets.
- You can keep your existing credit line open for other expenses and you can utilize such amounts for your business. It is natural that you will gain more amounts than your EMI from a machine and you can keep the extra amount on hand for future expenses. By availing machinery finance, you can expand your business without any headache.
- Apart from that, you can easily receive bulk orders from your clients and deliver the products on time because you have your own machines in your warehouse. Plus, brand new machines come with long term warranty and you do not need to spend any additional maintenance cost on them.
- You cannot sell your leased machines to others and you have to return them to the leasing company after using them. But if you buy such machines through machinery finance then you can sell them after a certain time, and you will great resale value.
How would you choose the best Machinery Finance?
It is better to search for the best lenders of machinery finance online and then check their portfolio. You must check their interest rate, processing charges, late fine, loan terms, and pre-closing charges before you apply for the loan.
In this regard, you can find some lenders that provide customized finance solutions. They will provide you with different finance options and they will assign a financial advisor for your company. You can discuss your requirements with their financial advisor and choose the best finance option for your business.