3 Reasons Why Financing Your Machine Tool is a Great Option
ELK GROVE VILLAGE, IL, December 29, 2021 -
Most CNC shops are familiar with using their local bank or even utilizing cash on hand when making a large machine tool purchase. But have you considered the benefits of capital equipment financing? This financing strategy oftentimes is a more attractive option, providing added flexibility and allowing you to purchase the equipment your shop requires to maintain a competitive edge.
Shibaura Machine offers customers access to our own in-house equipment financing, TM Acceptance Corporation (TMAC). TMAC explains that this alternate financing option offers shop owners numerous benefits that paying cash and bank loans simply don’t.
1. Increase your working capital
TMAC’s financing allows you to keep cash on hand and your bank line of credit available. This allows you to purchase the equipment you need and also be able to focus on things like expansion, payroll, and sourcing of materials.
2. Single source of financing
Financing allows you to not only purchase the machine tool, but add on additional options. This includes upgraded software, tooling, etc. which can all be combined into one single monthly payment.
3. Excellent tax benefits
Don’t overlook how the tax benefits of financing can pay off. For most equipment financing terms any interest paid on the payments can be written off as tax deductible. Larger tax benefits exist for equipment leases. The government incentives written into the tax code is also another benefit. Section 179 of the IRS Tax Code states that the full amount of equipment purchases via equipment leases can be written off. This means that even if your business does not pay for all of the equipment in that filing year, the business owner can still deduct the entire amount on their taxes for the year. Section 179 and bonus depreciation allows you to put no money down and any income you bring in from the new equipment will offset the equipment purchase.
TMAC is focused on providing excellent service and rates for Shibaura Machine customers. A variety of programs and services to finance your machine tool are available including: capital or true leases, even and step-up payment programs, and skip payments. As an in-house team our goal is to not only simplify financing a single piece of equipment for your shop, but to build a long-term relationship to help you build your business with up-to-date equipment through a financing strategy that makes sense.
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