Should I finance or buy my laser engraving equipment outright?
One of the first questions you will most likely ask yourself when purchasing a laser machine is whether financing or paying cash is your best option.
Here are 5 Advantages of Financing a Laser Engraving Machine:
- Financing any large equipment conserves your cash,allowing you to preserve cash in the event other opportunities or needs arise within your business. Additionally, you can spend more money on growing your business and navigate changing business conditions. It is easier to secure financing for equipment rather than working capital for inventory when in a crunch.
- Your laser engraving equipmentcan pay for itself. Once you are trained on the equipment, you can put it right to work as you earn money to pay the monthly loan payment. Any additional money earned past the monthly payment is profit for you.
- Financing gives you the ability to deduct the entire cost of the laser the first year your purchase it as well as the interest costs for tax purposes with Section 179.Combining Section 179 with an equipment loan can be a very profitable decision. The amount you can deduct will almost always exceed your cash outlay for the year when you utilize an equipment loan. Financing equipment while leveraging a Section 179 deduction will maximize cash flows as well as profits due to the cash flow tax savings.
- Financing provides a considerable amount of options: deferring payments, $0 down, slow season payments, 0% interest for 3/6/12 months are a few options that many financing companies offer. Additionally, you can control your monthly financing payments as you can choose between a 12-60 month term.
- Keep up with technology. At any time during your equipment loan term, it will be easy for you to upgrade equipment. When financing an AP Lazer machine, you own the equipment from the outright. You can payoff the loan early and upgrade to a newer or larger machine.
The decision of financing or buying a laser cutting or engraving machine is entirely up you and the needs of your business.
To get the best rates on financing, the age of your business and business credit is most heavily considered, and will not show on your personal credit.
Competition can always work in your favor and our financing partner can connect you to the right lender for your needs.