Are you looking for the best ways to buy industrial equipment? Do you know your options for industrial equipment financing? As intimidating and expensive as this task may sound, fortunately, there are several ways of purchasing industrial equipment as well as different available options for industrial equipment financing.
Here are the 7 best ways you could go about buying industrial equipment.
Here are the 7 best ways you could go about buying industrial equipment.
1) Live Auctions for Industrial Equipment
Buying industrial equipment from live auctions has a couple of advantages that might be right up your alley.
Firstly, there is the benefit that you get to see the equipment first hand, in other words you get what you see.
Secondly, the reserve price set by the seller can often time be much below the market price of the industrial equipment which could help you in getting a great purchase deal.
Remember to conduct a thorough inspection for any signs of major wear and tear. It is recommended to request for its maintenance record to give you a clearer insight on its condition. Most importantly, ensure that the seller is the owner of the equipment to avoid any legal problems.
One drawback here is that you have to attend in person or send a representative which could traveling costs and be time-consuming. Moreover, live auctions may require you to make prompt payment. so you need to be ready with your industrial equipment financing and get a no obligation approval from an equipment finance company.
Sometimes you can find the industrial equipment you want on the auctions website before the auction.
2) Online Auctions for Industrial Equipment
There are many ways to buy industrial equipment and get industrial equipment financing online. You could search for an online auction, visit different sites or hire an online broker.
Online auctions are a great value for time. It gives you more options since you can browse through different industrial equipment photographs and specifications. This gives you both time and convenience to do price comparisons and make an educated purchase decision.
The drawback here is that you cannot gauge the true efficiency and quality of the industrial equipment and the increased inventory options may hamper a good purchase decision. Similar to live auction, you will need to be ready with your industrial equipment financing at the time of purchase.
3) Industrial Equipment Liquidation Deals
Liquidation is a great way for many companies to recover the latent price from their machinery.
There are companies who need to maintain stringent equipment upgrade schedules. This causes them to initiate sales of their new equipment, which, for all practical purposes are brand new and in excellent working condition.
Sometimes these sales are initiated due to plant closures or other major changes within the company and a liquidation sale helps them with their asset recovery process.
Liquidation sales give you multiple items to choose from and make a wise purchase decision. However, the biggest advantage of buying industrial equipment on liquidation sales is that it offers almost brand new equipment and due to the nature of the sales these are well discounted and almost always up for clearance.
Once you've received your no obligation industrial equipment financing approval and the terms of the deal are negotiated well, have the selling company send a bill of sale to the industrial machinery financing company to begin the funding process. Used industrial equipment financing is not usually an issue in the equipment finance industry.
4) Dealer Purchase
Dealers serve a dual purpose. They are able to provide you industrial equipment to meet your needs and will many times also be able to arrange or guide you to the best industrial equipment financing that will give you the best machinery finance rates in the equipment finance industry.
Dealers usually specialize in their brands, so they have up to date knowledge about the features and specifications of the equipment. This will help you make an informed decision faster. Additionally, dealers have their name out in the community and hence apart from good quality equipment, they are also are a reliable source to purchase them. They can cater to your specific requirements and can arrange custom packages to get you a good deal along with a feasible industrial equipment financing solution.
It will be prudent to keep in mind that when you buy from a dealer you will be paying a higher marked up price. But you need to weigh your options since a purchase from a dealer is usually a one-stop deal that can save you both time and resources which otherwise you might have spent in researching the equipment and shopping around for deals. Unless you're buying used industrial equipment you can usually get a good warranty on new industrial equipment from a dealer.
All of these potential benefits can make an industrial equipment dealer purchase worthwhile.
5) Industrial Equipment Manufacturer Purchase
Purchasing industrial equipment from a manufacturer means 2 important things. Firstly, you need to be ready to negotiating the possibility of purchasing in quantity or more in the future. Good quality industrial equipment manufacturers like good close relationships with their customers and secondly, since an industrial equipment manufacturer purchase will almost always be brand new and expensive, you need to be ready with your industrial equipment financing options.
So, it can be a great deal of cash if you need multiple types of equipment or a setting up a plant. However, without an appropriate industrial machinery financing plan, it could prove to be a costly affair if you are required to buy in multiple quantities.
However, the biggest advantage here is that as opposed to buying from the dealer, the comparative cost per piece when bought from a manufacturer, will turn out to be relatively less expensive.
6) Online CNC Machine Purchase
Purchasing CNC machines from top online sites is another viable option. Top online companies provide great value for the equipment purchased often times followed by excellent customer service as well.
Since there are multiple online sites available they are usually competing to offer the best prices. This adds to your advantage to shop for bargains and get a good deal.
Every online company provides different purchase options and may even assist you in getting the best CNC machine loan available.
7) Private Party Purchase
So, if you do not have the time to go to a live industrial equipment auction, purchasing industrial equipment from a private party may be your best bet. As long as they have taken good care of the equipment.
The biggest advantage of buying industrial equipment from a private party is that you can have a face to face conversation with all cards on the table. You can learn the true reason as to why the party is intending to sell the equipment and inquire upfront regarding the quality of the machine.
Many times the party will be ready to negotiate a good deal but again be prepared with your industrial equipment financing approval ready on hand. Many times private parties have many sellers inquiring at once.
Purchasing industrial equipment can sometimes be a daunting task. Be a well-informed buyer. Ensure that equipment you decide to buy will meet your future demands. Read online reviews, detailed specifications and visit trade shows for hands-on experience of your desired industrial equipment.
The other aspect of purchasing is getting the best industrial equipment financing rates. Although there are various ways to obtain industrial equipment financing, the best option would be to apply to a company that specializes in heavy equipment financing.
Make The Right Decision When Buying Industrial Equipment
When choosing your financial partner and the right industrial equipment financing options, their terms and policies must be appropriate to your business. Make sure to study their industrial equipment financing rates carefully and determine if it suits your budget. Check your equipment lease payments and equipment finance rates up front by using an industrial equipment financing calculator to make sure you're making the best decision. Only borrow the amount of money that you think your business can repay. Avoid getting too much because debt is the number one reason why many start up businesses end up in bankruptcy.
Always finance the industrial equipment that depreciates and invest your cash in things that appreciate. When you invest your internal money back into your business, that cash can be making a higher percentage for you than an equipment financing rate.
Final Thoughts About Industrial Equipment Financing Options
Having the most reliable and upgraded industrial equipment for your business, acquired with affordable and flexible monthly payments, can have a lot of benefits for your business but purchasing industrial equipment can sometimes be a daunting task. Be a well-informed buyer. Ensure that equipment you decide to buy will meet your future demands. Read online reviews, detailed specifications and visit trade shows for hands-on experience of your desired industrial equipment.
The other aspect of purchase is getting the best options for industrial equipment financing. Although there are various ways to obtain industrial equipment financing, the best option would be to apply to an industrial equipment leasing company.
Trust capital can easily approve your company for up to $500,000.00 by just filling out a one page online application. Then go and buy industrial equipment.
For more information about industrial equipment financing, you can contact Trust Capital at (866) 458-4777 and speak with an industrial equipment finance specialist.