Manufacturing Equipment Financing [What You Need to Know]

Investing in newer, upgraded manufacturing equipment helps many businesses improve their productivity and safety while becoming more cost-efficient. It also helps them stay competitive with other companies in their industry.

However, even light equipment, such as bandsaws, laser cutters, or machines used in small-batch manufacturing can cost tens of thousands of dollars, which might be out of reach for some business owners.

If you often find customers deterred by your equipment’s prices, consider how you might offer manufacturing equipment financing. Here’s a closer look at why this might be the right solution for both of you.

Why Manufacturing Equipment Financing?

At the end of the day, most businesses will welcome solutions that give them access to the essential equipment they need. Here are some of the benefits it offers to customers that can make your business more attractive to them:

  • Flexible Payment Plans: With equipment financing, customers can make monthly payments instead of paying the full amount at once. It gives them more breathing room with their monthly budgets. You also won’t have to offer discounts just to entice them into purchasing. 
  • Tax Deductions: Under the IRS tax code’s Section 179, the customer’s lease payments can be considered business expenses, making them tax-deductible. Your customer could write off the entire cost of the manufacturing equipment on their tax return, saving them a lot of money.
  • No Credit Score Impact: Payment solutions like Clicklease can help approve payment plans regardless of credit scores. This helps you reach more customers who don’t always have a high credit score and active credit history. 

While there isn’t one financing solution that fits all organizations, many small businesses choose equipment financing because of the many benefits it offers. By letting them choose from a wide range of payment options, your business can reel in customers with different budgets. 

Getting Equipment Financing Solutions

Partnering with a manufacturing equipment financing company starts with choosing a provider that works for your needs. Some companies have free packages for purchases above certain prices, while others offer their services for a flat fee. Clicklease offers financing services to you, the equipment seller, for free. No margins. No fee.

When you get in touch with a financing service, you’ll need to provide details regarding your business, such as what state you’re located in and whether you already offer other types of financing. You’ll also need to disclose the type of manufacturing equipment you want them to finance for your customers. 

Clicklease makes the process simple and easy. And if you decide to work with us, you can start attracting more customers by displaying our flexible payment options on your website’s product pages or at the point of sale. The interface is easy to use and will be added seamlessly to your website.

How Equipment Financing Works for Your Customers

Financing solutions don’t always ask for excellent credit scores or down payments. Typically, the customer’s purchased equipment will serve as collateral but will be theirs to keep at the end of their payment term. 

When the customer’s application is approved, they’ll get the funds needed to buy the manufacturing equipment. Many financiers pay equipment vendors directly instead of depositing funds in the applicant’s bank account. 

How Long Do Manufacturing Equipment Financing Payments Last?

The terms of the financing agreement depend on whether the customer is buying equipment or leasing it and their customized payment plan. At Clicklease, we offer several payment plans, ranging from 24 to 36 months. Your customers can pick the option that best fits their budget, ROI, and cash flow.

Moreover, the entire purchase is fast and easy; it takes less than 10 minutes to complete. There is also no impact on their credit score since we don’t do hard-pulls. Their credit rating is never a barrier to getting the financing they need. No matter the credit score, we have a solution that will work for them. Many will get instant approvals of up to $20,000 dollars. Your customers will be hard-pressed to find financing options that are more flexible and easily accessible than the one we offer.

Don’t Leave Money on the Table! Apply Now

Giving smaller businesses access to quick funding for the manufacturing equipment you sell helps both of your companies to succeed. Let Clicklease help you make your products more affordable for more customers, helping you to access up to 90% of your customer basea big boost to your bottom line. Apply now to start providing financing options through your online store.