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Conserving cash and remaining competitive in food, beverage and ag industries

By Amy Thomas in Thought Leadership Posted March 8, 2022

bottling line in manufacturing plantChuck Sharbrough, Senior Vice President, Director - Food, Beverage and Agribusiness at Key Equipment Finance, shared three key considerations for upgrading equipment in Food Industry Executive.

Sharbrough wrote that equipment financing allows food manufacturers to upgrade, conserve cash and remain competitive.

“Utilizing modern, well-maintained equipment is imperative for food manufacturers to safely increase productivity, manage operational costs, and remain competitive in their market is a costly challenge for companies that plan to purchase the equipment with cash.”

Chuck Sharbrough from Key Equipment Finance

Specific types of financing solutions

Sharbrough highlighted specific types of financing solutions for the agricultural sector, including: equipment lease, asset finance and customized solutions.

“Leasing equipment allows food manufacturers to preserve working capital and lines of credit for other business investments.”

“Manufacturers also gain flexibility, as payments can be designed to match budget requirements, and terms aligned with the equipment’s useful life.

Sharbrough went on to say that asset finance is a financing option that includes both the equipment and soft costs associated with it, such as installation and maintenance. “With this option, processors acquire what they need to manage their business, typically with no advanced payment and one fixed monthly payment,” Sharbrough wrote.

Sharbrough also mentioned customized financing options as a way for manufacturers to maximize equipment depreciation and tax credits while minimizing income tax liabilities.

Three key considerations

Sharbrough listed three key things to consider when financing equipment:

  1. Return On Investment considerations
  2. Details of each financing option
  3. The finance team you will be working with

To assess the ROI, one thing to consider is how the equipment will impact business operations, Sharbrough wrote. To evaluate the details of each financing option, manufacturers should make sure they are clear on the specific lease conditions, renewals and additional fees. 

He included questions manufacturers may want to ask themselves before selecting a finance team. “Business owners should be bold in asking their potential financing provider the tough questions so they can truly evaluate and select the ideal team,” Sharbrough wrote.

You can contact Sharbrough by phone at 949-929-2526, by email at or connect with him on LinkedIn here

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