3 options for funding your vacuum equipment
There is no getting around the reality that commercial vacuum pumps are quite pricey. There is no way around it. Any company would be wise to make the significant financial commitment required to acquire vacuum pumps, which can range in price from a few thousand to tens of thousands of dollars immediate funds.
If you have an older vacuum pump towards the end of its lifecycle, you presumably spend considerable sums of money on repairs each month. Some older vacuum pump maintenance expenses can reach several thousands of dollars each month when you consider labor and parts. Add in the downtime for your company, and the expense of mechanical troubles might explode.
It is possible that at the end of your present pump’s lifetime, the payment on a new vacuum pump may be lower than the costs of repairing your current pump. You’ll likely find that your return on investment (ROI) is favorable for a new pump purchase too.
But how do you afford that new pump? Should you pay the amount in full, consider the choices for making payments in installments, or look for another solution? Below you’ll discover three financing options to consider for your new vacuum pump.
1. Traditional financing
You have the option of working with either your own bank or another financial institution when it comes to financing a purchase of this kind. When it comes to financing a purchase, one of your first ideas may be to collaborate with a lender who is already familiar with you. This is especially true if you have already created a line of credit that the company is free to utilize for whatever it deems to be the best use of the funds.
If you do not already have a credit line, obtaining a loan can be difficult and come with a number of drawbacks, such as having to go through an application procedure that could take a long time, having to justify your purchase, and paying high-interest rates for specialized machinery. In addition, financial institutions place restrictions on the total amount of credit that can be active at any given time.
2. Equipment funding
Dedicated equipment financing businesses are a viable alternative to the conventional loans or credit lines offered by banks. A great number of businesses, like Leybold, provide customers with the opportunity to purchase leased machinery at the conclusion of their lease for the same price that they paid for it.
These funding choices are appropriate for any kind of business. The payments for the updated equipment can be spread out over several years, allowing you to pay for it out of the money you saved on repairing the older equipment that was replaced. In addition, there is a possibility that you may experience a positive cash flow on the new purchase within the first month, which will result in a significant return on investment for the new piece of machinery.
3. Energy trusts in the various regions
Trusts for regional energy are funded by local energy providers. Trusts are funded by contributions from energy firms, and the trusts then utilize those monies to provide local businesses with grants and loans. The objective is that the loans and grants are used to support energy-efficient renovations.
If your current vacuum pump is more than several years old, a new pump is likely more efficient and would qualify for financing through one of these regional energy trusts. However, the criteria that must be met in order to qualify for these grants and loans might differ from trust to trust, so it is imperative that you conduct some investigation into the matter before determining whether or not you are qualified.