Answers to Questions on Financing or Leasing Your Next Coordinate Measuring Machine
An Interview with Matt Borman
Tech Financial Services, A Division of Five Lakes Financial, Inc.
Who is Tech Financial Services?
We’ve been helping machine tool shops, automotive suppliers, manufacturers, tool and die shops and other small and medium sized manufacturers with CMMs, non-contact measuring equipment and other machinery financing since 2003. Since then we’ve provided industrial equipment loans to thousands of businesses across hundreds of industries.
What are some of the financing options available for new measuring machines?
We offer both variable and fixed-rate loans for equipment and machinery purchases. We also have various leasing options.
Typically, we evaluate each client and custom-tailor a financing or leasing program that fits his or her business situation. Our goal is to structure the right loan or lease program that allows you to expand or grow your business without hurting your cash flow and working capital.
Should I buy or lease my new CMM?
Purchasing instead of leasing is a good idea if the equipment is expected to have a long productive life and can operate without needing a replacement or upgrade in the near future.
You can use the loan to finance a measuring machine that allows you to take in new work. This allows you to use equipment now, instead of waiting to buy it outright, while spreading loan payments over the life of the asset. That way you generate income from the equipment, gain equity, and even pay the loan off sooner.
What are some of the benefits of financing a new metrology machine purchase with a loan?
We already mentioned increased production and quality. If a getting a new CMM allows you to take a contract worth millions of dollars that is obviously the biggest benefit. Some of the other advantages could include:
- Interest Tax Write Offs
- Increased Business Asset Book Value
- Equipment and Machinery Depreciation Tax Deduction
- Keeping Existing Credit Lines Open for Expenses
- Preserving Cash on Hand
What if my bank or other finance company says they can offer low rates?
Finding the best rate is only part of financing a purchase of a new CMM or non-contact measuring machine. You need to be very careful about hidden fees and unfavorable terms in the contract. We can compare the equipment lease or loan you are considering to ours to make sure you are making the right financial decision for your individual business needs.
Obviously, we also recommend you always discuss all potential contracts with your accountant / attorney.
What about a used CMM? Can I finance a used machine too?
Yes. Used equipment can be a valuable asset to your manufacturing facility, especially if the particular type of machinery has a low obsolescence rate.
Working with Wenzel America is especially beneficial as they fully certify and refurbish any used CMM they sell regardless of the brand. They also customize the retrofit with the newest software and sensors to suit your exact needs.
An advantage of this is that many companies can purchase the more machine for less. In other words you get the CMM you need instead of settling for the bare minimum or decreased accuracy of a cheaper, new machine.
It’s also possible you could afford two pieces of used machinery for the price of one new CMM. This strategy can greatly increase the productivity of your manufacturing facility while containing costs.
Another benefit of financing a used CMM versus new is you can get it in on your shop floor or in your testing lab right now. Fast availability can be a game changer for many facilities.
Can you wait months for a new machine to be delivered and setup? Used equipment can be usually be arranged, rigged up and on its way as soon as your financing is approved.
Can I lease a 3D coordinate measuring machine?
We know companies have different needs, different cash flow patterns, and unique and sometimes irregular streams of income.
Regardless of the current interest rate environment, we have a solution to help you acquire the metrology equipment and measuring machines your business needs.
What about used CMMs? Is leasing an option?
Virtually any equipment and machinery can be leased. Some tax breaks are only available for new equipment, but there are many other beneficial options available when you lease.
What are some of the benefits of leasing measuring equipment?
· Prevent Equipment Obsolescence
· Keep your lines of credit open
· Lower Down Payment
· Include installation, freight, maintenance, software, etc.
· Keep more money for revenue generation activities
· Increase Profits while maintaining cash reserves
· Depreciation Benefits
· Speed – Get the CMM you need – now
What are your current rates and how can I get more information?
If you’re considering purchasing a new or used CMM or other measuring equipment in the near future you can sign up for our monthly loan rate updates right on our website www.techfin.com.
If you have more questions or need to go over your specific business needs feel free to reach out to me directly at 800.866.1469 or email me at Matt Borman.
We also have some resources that you can access right now including an instant quote, a tax benefit calculator and a downloadable credit application.
About Tech Financial Services, Inc.
Tech Financial Services, Inc., a division of Five Lakes Financial has been providing financing solutions to the best industrial and manufacturing companies in America since 2003.
With decades of personal experience in the machine tool industry they understand the economic and organizational issues facing distributors, manufacturers, and end-user customers. Their expert finance staff provides competitive financing alternatives specific to the needs of smaller manufacturing companies. More information can be found at www.techfin.netor phone 800.866.2469 or visit 840 N 3rd Street, Suite 500 Milwaukee, WI 53203.