There is a vicious circle in manufacturing – good equipment costs money, but you cannot make money without investing in that equipment. So how do businesses afford the machinery they need to make a success of their entrepreneurial endeavours?
They buy it used
The cheapest way to permanently acquire high quality machinery is to buy it secondhand. Even niche equipment such as Euromac bending machines can be purchased second hand at a reasonable price from reputable distributors, having been inspected and warranted fit for use.
Buying second hand machinery allows you to purchase the equipment you need at a lower price than is possible new, but you must thoroughly inspect the equipment, ensuring it is in full working order and suitable for your intended purpose before taking it on, as depending on its age and maintenance history, it could end up costing you more in the long run.
They buy it on finance
Many manufacturers offer finance packages on expensive machinery, allowing purchasers to spread the cost over several months or years. This option is usually only available to established businesses with a good credit history and assets they can use as collateral.
Buying new equipment on finance can offer tax efficiencies, but you must determine whether the interest rate outweighs the savings.
They rent it
There are many types of machinery, such as Euromac bending machines, which some businesses will only need for a specific project, function or time period. Because they have no ongoing or routine need for that machinery, renting it makes sense. They pay a fee for the time they have the machine, then return it when it is no longer required. While renting offers a low-risk and accessible way to utilise modern machinery, it is trumped by ownership when that equipment is needed on a daily basis.
Which is right for you?
All manufacturing businesses are different, and have different needs and different profit margins. It is essential to consider the risks and benefits of each option in order to determine which is right for your individual circumstances.
