Building a relationship with a secondary financial partner keeps your business in a healthy financial position should your primary partner discontinue your relationship.
Disruption, good or bad, is a factor when conducting business. Ensure your shop is financially prepared to deal with the challenges and the opportunities.
Find the best financing options for your small business.
To realize the full potential of implementing digital initiatives within your operation, consider what type of impact these initiatives can have, and how you can monetize the changes. In some cases, the monetization is simply reducing costs.
Shipment delays and supply chain bottlenecks can prevent new machinery from being delivered on time, as an example, and imped efficient production and opportunities for growth. One option is to purchase used equipment, which is readily available and less expensive.
Many machine shop owners are planning to make capital investments within the next year, which includes machinery. There are a few questions you should consult with your lender when dceciding if it’s better to lease or take out a loan.
Machine shops must invest in technology to compete; however, cutting-edge technologies become obsolete sooner, and with a low demand on the secondary market, lenders are reluctant to finance your growth plans. Thankfully, there are a variety of financing mechanisms to consider.
Last year’s unprecedented economic and supply chain challenges underscored gaps in commonsense contingency planning. Manufacturers that take heed of these lessons learned will be better prepared for whatever crisis may arise.
A financing relationship is a two-way street. Make potential lending partners comfortable supporting your company’s growth by being able to clearly and concisely explain how a piece of machinery – or machines – will improve productivity and profitability.
With interest rates at an all-time low, the idea of buying new equipment is tempting. In addition, purchasing new equipment can also help you reduce your company’s potential tax burden for tax year 2020.