Finance

10 key benefits of equipment financing for manufacturing

For many manufacturers, the costs of purchasing new equipment — or replacing equipment that has reached its end-of-life — can be more than daunting: it can be prohibitive. Fortunately, that is where iconsys step in with equipment financing for manufacturing offering a practical and affordable solution. 

1. Purchase now vs later: Instead of waiting months or years to purchase the assets you need, equipment financing helps you to buy them now — which means you can use them to increase capacity, drive revenues and boost profitability
2. Hedge Against Inflation: By purchasing assets now, you lock-in at today’s price. Waiting months or years likely means that the price will rise due to inflation and/or increased marketplace demand
3. Flexibility: You can customise the funding to align with your specific needs, such as cash flow requirements, tax planning, expense planning and accounting strategy (e.g. off-balance sheet financing, improved reporting earnings, increased return on assets, etc.)
4. Reduce Risk: Even if you have the capital on-hand to purchase new equipment, it may make strategic sense to preserve it instead of spending it. Especially if you have some concerns that equipment in question may not deliver a short path to ROI, equipment financing may be the answer.
5. Increase Competitive Advantage: The equipment you purchase can be used to increase your competitive advantages, which will translate into a more valuable brand, along with more customers, sales and profits. Conversely, not purchasing the equipment could erode your competitive advantage and damage your brand.
6. Greater Purchasing Power: Financing gives you more purchasing power, which you can leverage to negotiate a lower price and/or a more favorable agreement.  
7. Tax Advantages: Finance payments are tax deductible, and you will be able to depreciate the equipment (how fast you can depreciate and the amount depends on a variety of factors, including the type of equipment, when it is purchased, and so on).
8. Upgrade facility: Take advantage of new equipment by simply upgrading or extending current usage.
9. Plan Budgets: Fixed term, fixed rate – you know how much you have to pay.
10. Everything covered: All machinery and related equipment i.e. installation, training and maintenance costs.