Equipment Financing and Leasing for Manufacturing Companies

Equipment financing and leasing can be extremely valuable for manufacturing companies looking to acquire new equipment or upgrade their existing machinery. Manufacturing companies rely heavily on specialized equipment to produce their goods, and the cost of purchasing this equipment can be substantial. Equipment financing and leasing is an excellent alternative to upfront cash purchases, allowing companies to spread the cost of acquiring equipment over time. Let Customers Bank guide you through effective equipment financing options.

Customers Commercial Finance provides manufacturing clients with the best of both worlds: the industry knowledge, responsiveness, and personal service of a specialty finance company, along with the financial strength, stability, and low cost of funds of a growing bank. Our team has deep industry knowledge and decades of experience in building solutions that work for you.

We have experience in Automation, Fabrication & Assembly, Inspection/Quality Control, Lathes, Milling Machines, CNC Machines, Welding Machines, Plasma Cutters, Waterjet Equipment, Stamping Press Equipment, and more. 

What Equipment Financing & Leasing Can Do For Your Business

One of the main advantages of equipment financing and leasing is that it helps manufacturing companies preserve their working capital. Instead of tying up a large amount of cash to buy equipment, companies can use that cash for other operational needs such as inventory, payroll, or marketing. Spreading the cost of equipment over time can help you maintain a healthy cash flow and have more flexibility in managing day-to-day expenses.

Equipment financing and leasing also give you access to the latest technology and equipment. As technology evolves rapidly, you won’t be able to stay competitive using outdated machinery. By opting for equipment leasing, you can upgrade your equipment to keep up with industry standards and improve productivity. This will keep your business at the forefront of innovation and enable you to provide better-quality products to customers.

Another benefit of equipment financing and leasing is its flexibility in terms of contract terms and payment options. Choose lease terms that align with the equipment’s expected lifespan or the duration of a specific project. Additionally, payment options such as seasonal or deferred payments can often be customized to fit the company’s cash flow. 

Popular Financing Options

There are several types of equipment financing options available to manufacturing businesses.

• Equipment Loans

Equipment financing loans provide a lump sum to purchase the necessary machinery. The loan amount is typically based on the cost of the equipment, and you make regular payments, including interest, over a predetermined term. Equipment loans are a good option if you plan to use the equipment for an extended period or if you prefer to own the equipment outright.

• Equipment Lines of Credit

Equipment lines of credit are revolving credit facilities that allow you to access funds for ongoing equipment needs. Similar to a business line of credit, an equipment line of credit provides you with a predetermined credit limit. You can borrow against this limit as needed and make payments only on the amount borrowed.

• Small Business Administration (SBA) Loans

The Small Business Administration (SBA) offers loan programs to help small businesses, including manufacturing companies. SBA loans typically have more favorable terms and lower interest rates than traditional loans. They can be used to finance equipment purchases and other business needs.

Key Takeaways

In conclusion, equipment financing and leasing are valuable options for manufacturing companies looking to acquire new equipment or upgrade their existing machinery. With assistance from Customers Bank, you can acquire the machinery you need. Get in touch with us today.