Tormach machines are known for their usefulness in a wide variety of business fields. Whether you’re a musical instrument manufacturer or a furniture-making business owner, Tormach machines can be highly useful.
This is mostly because Tormach machines can produce outputs with maximum efficiency and less human error. As a business owner, this ability to produce high-end results is most likely the reason you’d want to get Tormach financing.
Tormach financing can be an easy way for you to immediately acquire the machine that your business needs. Through Tormach financing, you can quickly add new Tormach machines to your workforce.
However, deciding to do Tormach financing can seem a lot easier than actually arranging to get Tormach financing. Commonly, getting Tormach financing includes a lot of special arrangements.
So, how can you be sure that you’ve chosen the best way to do your Tormach financing?
Well, first you’ll have to see all the options that are available for you to choose from.
Fortunately for you, this blog has already compiled options for you to choose from in order to get the most out of your Tormach financing!
Choosing the Best Tormach Financing
Now, arranging your own Tormach financing for your business can seem complicated at first. Especially if you're a new company. Some businesses might even resort to choosing the first Tormach financing option they see without assessing all the differing finance options first. For example, you could choose a $1 buy out, an Equipment finance agreement, a 10% PUT, a TRAC lease or a FMV buy out.
Consult with an experienced equipment financing professional to go over all your options and discover how each one has different tax benefits for your business. Not doing that will definitely put you at a disadvantage, especially since some Tormach financing can be costly. You may want no pre payment penalty or you may rather have the lowest payment and a bigger tax write off.
Since CNC equipment is a vital tool in most manufacturing businesses, you’ll have to learn how to properly do Tormach financing for your business.
So, you need to be familiar with the Tormach financing options available for you.
Choosing How to Finance Your Tormach
Firstly, you might be asking why you should consider Tormach financing at all. You might even be asking why you shouldn’t just wait until you can straight-out buy a Tormach machine or purchase something cheaper.
However, Tormach financing actually helps you have an edge against your competitors. With competitors creating new products and keeping the marketplace vulnerable, you need to quickly adapt to change.
No matter what status your finances might be in, new equipment and Tormach financing can help you stay competitive in your industry. At the same time, you won’t have to compromise your budget.
And since the whole point of Tormach financing is to avoid coming out of pocket thousands of dollars, you have a variety of Tormach financing options.
The following are Tormach financing options that you can choose from, depending on your current financial status.
Tormach Leasing Options
Luckily, most equipment financing companies can offer flexible options that can meet your capital or cash inflow status. This makes equipment financing feel lighter on your budget.
Most equipment leasing companies have five equipment lease programs to offer businesses looking for Tormach financing or CNC equipment financing options. These five options are available for both startups with industry experience and established manufacturing businesses.
The first option is a 10% PUT Lease option that allows lowered lease payments during the term. At the end of the term, you'll own the equipment after paying the Purchase Upon Termination (PUT) sum.
On the other hand, a $1 Purchase option has higher monthly payments. However, you can own the equipment by paying $1 plus any applicable taxes or fees at the end.
Business owners also have a Fair Market Value choice, which opens more options for a buyout. For most business owners, the Fair Market Value choice could even be considered as the best option so far when applying for Tormach financing.
With an equipment finance agreement your remain the owner of the equipment the entire time of the loan and you just make payments back to the equipment finance company til you've paid off the agreement. The best equipment financing companies let you pay the equipment finance agreement off early and only pay the remaining principle left on the agreement and not all the remaining interest.
Paying for Tormach Financing with Good Credit
As an example, let's say you're looking to finance equipment for $25,000. If you plan to get Tormach financing with a 10% PUT at the end, your monthly payment would be:
- $711/month for a 36-month term.
- $555/month for a 48-month term.
- $458/month for a 60-month term.
On the other hand, if you plan to get Tormach financing under $1 Buyout or an equipment finance agreement, your monthly payments could be:
- $769/month for a 36-month term.
- $599/month for a 48-month term.
- $498/month for a 60-month term.
Paying for Tormach Financing with Okay Credit
Now, some business owners might be worried about Tormach financing without good credit. However, you can still get Tormach financing approvals even then—rates will just be higher for you.
Now, returning to the example, let's say you're looking to finance equipment for $25,000.
If you plan to get Tormach financing with a 10% PUT at the end, your monthly payments could be:
- $810/month for a 36-month term.
- $649/month for a 48-month term.
- $559/month for a 60-month term.
If you plan to choose to get Tormach financing under a $1 Buyout agreement or an equipment finance agreement, your monthly payments would be:
- $855/month for a 36-month term.
- $692/month for a 48-month term.
- $587/month for a 60-month term.
Fair Market Value Option
Now, as mentioned before, the Fair Market Value (FMV) buyout lease option can be considered the best and most commonly used option for equipment leasing.
With an FMV lease, you have the option at the end of the lease to purchase the equipment at its FMV, return it, or renew the lease. Most equipment leasing companies will take a 10% cash offer at the end and may even cap your FMV on the agreement up front at ten or twenty percent. It will be written as FMV not to exceed ten or twenty percent.
So, when FMV lease buyouts are set at around 10-20% of the cost of the CNC machine. Your payments over the term of the lease are lower than a $1 buyout lease. A FMV lease option provides low monthly payments and significant flexibility when the lease ends. Plus, 100% of your FMV lease payments can be written off your taxable income.
This means they’re often among the most affordable leases as well as among the most convenient because equipment leasing companies approve these CNC machines in 1-4 hours. You can get an instant leasing quote on most equipment leasing companies websites.
Choose a Suitable Financing Company for Your Business
Now, you most definitely have to assess your business status, credit history and cash flow first. This is in order to determine your capability for Tormach financing.
Next, you’ll need to find an equipment financing company to partner up with for your Tormach financing. Luckily, many equipment financing companies are easy to contact.
Equipment financing companies such as Trust Capital even give you the option to apply online in order to get a no obligation approval that's good for 60 days. Pre-approval lets you know what your business can afford before actually making any purchases. Gives you negotiating power just as if you had the cash.
Trust Capital also has a wide range of options for different business needs. This makes partnering up with them for your Tormach financing a lot more beneficial.
Your business will improve with new equipment, therefore you should stick with an equipment financing company that can aid this potential growth. You need to be reassured that your equipment financing partner won’t leave you to fend for yourself.
Luckily, Trust Capital can offer you the best Tormach financing options in the market and save as much as you can during the process. Some of Trust Capital's benefits are the following:
- Get up to $500,000 with basic information,
- Same-day funding and pre-funding available,
- Simple one page credit application,
- All credit scores considered,
- No payments for 3 months or $99 for the first 6 months,
- Competitive rates,
- No Pre Payment Penalties. This is huge for most businesses.
Final Thoughts on Financing Options for Your Tormach Machines
Being able to finance new equipment for your business is undoubtedly an essential part of any business. This is why getting the most out of your equipment or Tormach financing is important.
You’d want to invest carefully in Tormach financing, so you should assess your financial abilities carefully. Then, choose a financing option that best fits your business’s budget status.
At the same time, you must also choose an equipment financing company that can properly assist you. Companies like Trust Capital even have benefits in store for business owners looking to get Tormach financing assistance.
If you’re careful with choosing the best Tormach financing option for your business, you’ll have a new asset in no time without burning a hole through your wallet!However, if you still need further assistance when choosing the best Tormach financing option, you can contact Trust Capital at (866) 458-4777.