CNC Machine Equipment Financing for Small Businesses

Leasing a computer numerical control (CNC) machine can change how your small business operates, putting this highly useful machine within reach. Learn more about CNC machine equipment financing and the ease of leasing one through Clicklease.

What Is a CNC Machine?

A CNC machine is a highly functional piece of equipment used to create objects. It has uses in nearly all industries because it can manufacture items from plastic, aluminum, other metals, wood, and various hard materials.

CNC Machine Rental vs. Ownership: Which is More Cost-Effective?

A CNC machine rental is an option, but the cost falls between $75 and $120 an hour, making it a cost-prohibitive option for many small businesses. The rental fee rarely includes the materials used or the computer design time, which means the total cost will be much higher.

If you only need a CNC machine for one object, renting one might be a cost-effective option. However, when your business has long-term needs, it’s worth investing in your own machine.

Things to Consider

Investing in a CNC machine is a major decision for your company, so it’s important to take some time to research what you can expect and which machines might meet your business needs. We’ve outlined a few common considerations to review before making a purchase.

Cost to Run the Machine

A CNC machine needs space and electricity to operate properly. The machine should have sufficient room to function if your company has warehouse space. However, if your business utilizes a smaller space, consider the costs associated with renting or leasing a larger area for the machine.

Additionally, the amount of energy a CNC machine will use during operation factors into the total cost. Different sizes and models have different energy consumption needs, so try to get an idea of the usage of the machines you’re considering and include that in the overall cost.

Cost of Materials

The materials used in a CNC machine also impact the total cost of operation. If your business uses cheaper materials, such as acrylics and plastics, the cost will be lower than that of a business that uses steel, brass, or other types of metal materials.

Cost of Labor

A CNC machine is a powerful tool that can work in complicated details to carve and create objects with extreme precision, but it doesn’t work on its own. A technician programs, maintains, and oversees the machine during operation. This ensures that any mistakes can be resolved before wasting extensive time and materials.

The cost of labor depends on the rate of the technician who operates the machine. When calculating the cost of CNC machine ownership, include labor in the total.

Equipment Financing is an Option

All CNC machines are expensive pieces of technology. As a result, few small companies or businesses have the capital to purchase them outright. Equipment financing options allow businesses of all sizes to buy their own machinery and maximize the benefits of CNC machine ownership.

Taking out loans to finance expensive equipment is often a necessary part of doing business, particularly when a company relies on costly machinery to manufacture products. If you’re considering financing, make sure to review several key components of the contract:

Understand the Terms

One of the most important considerations in financing for a CNC machine is the financing terms. All terms of the deal should be provided in writing, and you shouldn’t sign anything unless you agree to everything outlined.

When reviewing a contract for CNC machine financing, take your time and make sure you understand every section. If you ever feel rushed or pushed into the sale, walk away or ask someone with experience in the industry to look at the document. You can always request changes to the term or work with a lender that better aligns with your company's needs.

By taking the time to understand the terms, nothing will surprise you. You won’t face hidden fees or charges because the contract will outline any financial requirements clearly. Reviewing the contract takes time, but being meticulous about understanding and negotiating the terms will help you in the long run.

Assess Personal versus Business Finances

When applying for CNC machine financing, you may learn that your credit score is lower than expected. But when you’re financing a business purchase, the lender looks at several factors besides your credit score.

It may be difficult to qualify for business financing, but CNC machine leasing is a different story. Clicklease is here to provide the runway needed to purchase CNC machines. We welcome applicants with all credit scores and don’t run a hard credit inquiry. Our process is also quick and efficient, and customers can pick their own payments.

When you lease a business purchase, you may be able to separate it from your personal finances. This means that your personal funds and assets aren’t on the hook should you fail to meet the terms. However, it’s important to review the term to better understand whether you’re applying as an individual or a business.

Be Aware of Interest Rates

Interest rates should play a major role in your decision about financing for a CNC machine. The rate you qualify for factors into your monthly payment and how much you’ll pay over the life of the loan. Even half a percentage point can cost you thousands.

It’s also important to review whether you’re getting a fixed or variable interest rate on your loan. A fixed rate remains the same throughout the loan term, while a variable rate can change over time.

Each has its pros and cons, but generally, taking on a loan with a variable rate comes with more risk. If national interest rates skyrocket, your monthly payment could go up accordingly, impacting your business budget.

Benefits of CNC Machine Leasing For Your Business

Sellers who offer leasing to their customers can:

• Give their customers more options to get the CNC machine they need to operate their maker business, without the customer walking away empty-handed.
• Get paid the same day, in cash (via ACH).

If leasing through Clicklease, sellers can also:

• Find out which customers are already approved, and therefore have purchasing power.
  • You can call or email the prospective customer to find out more about which machine they're interested in, and have more confidence in closing the sale.

Your Customer Benefits From Leasing Equipment

Customers who lease can:

• Access and use their machine to make products right away, giving them the opportunity to generate income faster.
• Count on fixed payments for a fixed amount of time.
• Get approved for a CNC machine lease, but not a loan.

Banks and other traditional lenders want reams of paperwork and days of scrutiny before they’ll offer a business loan—and that’s only if your customer was approved for one in the first place.

The way leases are structured allows companies like Clicklease to approve customers that banks might not. Our proprietary approval algorithm lets us approve even more customers than other leasing companies.

Get Started with CNC Machine Leasing Today

If you are looking for an affordable way to lease your CNC Machine, Clicklease offers affordable payments that will empower you to get your equipment now. Take advantage of leasing options that are great for small business owners.