Finance options for industrial machinery purchase

[BGARK]

The initial message was deleted from this topic on 17 June 2024 at 17:33

[Eric Mc]

Be aware of the generous Capital Allowances which are available on Plant and Machinery. Depending on the type of finance you go for, you may find that these allowances won’t be as generous.

[LooneyTunes]

The rates you get offered for this sort of thing are going to be highly dependent on the strength of the company and any security package put in place to increase the lenders recovery prospects.

Your options probably range from simple borrowing to asset backed lending using the equipment as collateral.

[NickZ24]

crowd funding could also work,
there are more and more lending platforms online.

[wc98]

It depends. One company i worked for in the past usually had the costs for tooling for new customers/components spread across each order they made over a period up to 3 years and in one case we had 50% of the cost of a new machine (machine cost 200k back in 2000 ) spread across a 3 year order run. I have also seen manufacturers keen to shift new equipment set up deals with little or no interest involved provided you have proof of orders/contracts to cover an agreed period where you will pay off the cost.

If it's a specialised industry and you are taking on stuff that others in the industry either can't do or don't want to do it's worth speaking to your customers, they can only say no, same for the equipment manufacturer.