MoldMaking Technology magazine recently put the spotlight on the role of financing in additive manufacturing, or 3-D printing, which is expected to grow substantially as more companies develop production equipment, more materials become available, and the importance of mass production increases.
Additive manufacturers, or mold builders, can use equipment financing to acquire the new or upgraded equipment and software they need to remain flexible, efficient and competitive.
In her business strategies column, MoldMaking Technology Editorial Director Christina Fuges shares the benefits of financing equipment from Key Equipment Finance's Toni Larson, senior vice president of industrial equipment.
Toni says that “the power of moldmaking technology is in its use, not its ownership, which is why equipment financing can provide mold builders in need of new or upgraded equipment and software with the flexibility and efficiency necessary to stay competitive.”
The column goes on to share equipment finance benefits for both the mold builder and technology supplier:
"Mold builders not only gain flexibility with equipment financing, but they conserve working capital and lines of credit for other business investments. The lender may make any progress payments that the technology supplier requires on behalf of the customer. Also, payments can be structured to match budget requirements, with terms that are in alignment with the equipment’s useful life.
"Equipment financing provides obsolescence protection with the ability to add or upgrade equipment and software during the term. And, by bundling acquired equipment with soft costs, such as installation, sales tax, freight and maintenance into one agreement, mold builders can acquire what they need with no money down and one fixed monthly payment.
"Equipment financing may also provide tax advantages by using depreciation and section 179 credit to reduce tax liability. A lease allows 100 percent of the payment to be expensed. Lastly, fixed payments throughout the term enable predictable cash flow management.
"Technology suppliers can increase sales. By teaming with an equipment finance partner, technology suppliers can implement financing programs with their customers’ budgets in mind. They can provide a total solution that bundles all equipment and related service and installation costs."
Here's more from the original article: