Why financing the machine can protect cash
Buying equipment outright can drain the account that pays staff and suppliers. Financing spreads the cost across the time the equipment earns money, which keeps the working account intact. The key is to be certain the equipment either brings in new income or protects income you already have.
A city with a making tradition
Wikipedia notes that the Glenn L. Martin Company, a precursor to Lockheed Martin, was founded in Santa Ana in 1912, and that Rickenbacker, whose electric guitars and basses became famous, is among the city's notable businesses. The city also hosts corporate headquarters such as TTM Technologies and Behr Paint. A place with that history has a deep base of small manufacturers and trades, each with its own machines.
- Fabricators and machine shops: mills, lathes, brakes, welders.
- Printers and packaging firms: presses, cutters, binding equipment.
- Restaurants and bakeries: ovens, hoods, mixers, refrigeration.
- Service fleets: vans, lifts and tools for trades.
Is it a good time to buy?
| Sign | Reading |
|---|---|
| Turning away orders because capacity is full | Strong case, if the orders repeat |
| Old equipment causing repeated downtime | Strong case to replace |
| Buying to "be ready" for work not yet signed | Weak case; wait for a firm order |
| Equipment is fine but a competitor has newer | Weak case unless customers pay for the difference |
An illustration, with made-up numbers
These numbers are not our terms or a typical result. A Santa Ana print shop needs a $70,000 finishing machine to take over work it now outsources at a cost of $3,500 a month. If the machine ends the outsourcing and also lets the shop bid on larger jobs, the owner should add both savings and extra margin and compare the total with the payment. If only the outsourcing cost disappears, the machine pays back slowly, and the decision hinges on whether the larger jobs are real.
What the numbers should include
The sticker price is only part of it. Add installation, training, delivery, any insurance the equipment requires and the downtime while it is being set up. Then subtract what the machine replaces: outsourcing fees, repair bills, lost orders. A purchase that looks tight on the sticker price can look comfortable once the avoided costs are included, and the reverse can also be true.
Before you buy
- Get two quotes, and ask about delivery and setup time.
- Check the space: power, ventilation, floor load and permits.
- Plan operator training or hiring so the machine is not idle.
- Keep some cash for materials. A machine without material to run is a cost, not an asset.
How to apply
We consider FICO scores of 500 and above, review about three months of business bank statements and need no tax returns. The application takes five minutes with a soft credit pull. Funding runs from $25,000 to $5,000,000 and can arrive in as little as 24 hours. Sole proprietors can apply. Apply here. If the need is broader than one machine, see working capital or the Orange County overview.