When it’s time to purchase new machinery or metal processing equipment, you may need to consider the option of financing your machinery purchase. There are several advantages of financing your metal processing equipment no matter what the needs of your manufacturing or fabrication facility require. When you are need of purchasing a new machine to achieve production goals, it is important to get the financing you need quickly in order to continue production with as little downtime as possible.
JMT has teamed up with Intech Funding Corp to make the machinery purchasing process as easy as possible for all of our customers. We are happy to help you get the information you need to get approval on your machinery financing which can often happen the same day you apply. Below are some questions many of our customers have about financing their machinery with Intech.
Why is it a good idea to finance a machine?
Unlike the purchase of a car or home, a machine is an income producing asset. If you can bring in more revenue by purchasing a machine that the cost of financing that machine, the purchase of the machine makes sense. If you wait to purchase a machine it could cost you thousands of dollars in lost productivity and missed opportunities.
What is a “finance” or “Capital” lease?
This is a lease with a nominal buyout at the end of the lease term. Under accounting rules and according to the federal government and the state governments, capital leases are treated just like a loan. Depreciation and tax benefits go to the machine shop, just like they would on a loan. Companies like Intech use this contract structure because it lets us do business across the US with a single, simple contract. There is no large buyout or notification required from customers at the end of the payment term – the end-of-term buyout is typically $1.00 ($101 in some states).
What should a customer know before applying?
Any customer looking to finance machinery should have a good idea of what their credit looks like. Most customers already know this information, but it is important to be prepared with your financial information before beginning the application process. Any customer may also call ahead to discuss the transaction and get a payment quote. Although not all applications are processed at the same rate, your application could be processed and approved in as little as a few hours.
Intech Funding Corp. specializes in the financing of manufacturing machines. We have financed over $900 million in equipment in the U.S. since our inception. We have simple contracts and great terms that are designed to keep customers coming back to us again and again as their business grows. The application process is free and can usually be completed within a few hours to a few days.
What rates and terms does Intech offer? Intech finances machines priced from $10,000 to over $1 million. Financing is for periods from 1 to 7-years on machinery. Our interest rates are very competitive and depending on the transaction size, credit and lease term, rates can be as low as 4% or even lower and remain fixed for the life of the lease. While there are many variables that determine the interest rate, typically the higher the transaction size, the lower the interest rate.
Obtaining the right financing for your machinery and metal processing equipment is important for you to get the most out of your machinery. The JMT and Intech representatives are happy to answer all of your machinery financing questions. We will help you understand how financing works and why it is a great idea for your business! Call us today to discuss your financing options!