Benefits of Financing – Page 2 – Equipment Financing Blog

Packaging Equipment Leasing and Financing

admin January 20, 2020

Over 75% of US companies use some form of financing when acquiring equipment — for good reasons. Financing – particularly leasing – allows them to Overcome capital budget limitations. Preserve cash flow. Conserve bank lines of credit for when they need them the most. Achieve their ROI through labor/material savings with affordable monthly payments. Pay for equipment with future proﬁt instead of working capital. Take advantage of available tax benefits. Defer sales/use tax by paying it over time with monthly lease payments instead of up front with the purchase. Why does working with a specialized lender matter? Won’t any lender do? When searching for lenders for... Read More

How leasing reduces equipment payback period to zero

admin January 10, 2020

When we acquire a piece of packaging equipment, we do so because it will help us make more money. The purchase of a stretch wrapper, for example, will result in lower labor costs, decrease material usage, and better secure our products during the shipping process. The purchase of an automatic bagger will increase revenue by scaling up production. In both scenarios – lower costs and higher revenues – we see a significant increase our company’s cash flow. Let’s say we spend $45,000 on a flow wrapper, and that flow wrapper increases our cash flow by $15,000 a year. It will take three years for us to recoup the initial $45,000 investment. Those three years are the payback period. Until... Read More