Used Industrial Machinery: When Should You Buy Used Instead of New?

Betting on the overall performance of new machines against used ones is a forgone conclusion – or is it? In woodworking, there are some instances when buying the latter is more sensible than buying the former, especially when it features industrial grade design. Unlike hobby grade and mid grade machinery, industrial grade machinery can last for decades, delivering top performance despite frequent use under hash conditions, such as those found in high capacity woodworking factories.
If you are considering buying industrial woodworking machinery used instead of new, below are four situations in which buying it secondhand makes the most sense.
You Need More than One Machine Within a Short Timeframe
For some woodworkers, upping production means buying two or more machines within a short timeframe. If this describes your situation, investing most of your money in one machine and then figuring out ways to buy the others does not make much sense, and could lead to unwanted financing.
Some woodworkers do this when they buy CNC machines. Instead of carefully inspecting a pre-owned machine, they buy a new one to ensure that its computer and cutter heads operate as expected. However, pre-owned CNC equipment can offer the same performance as new equipment.
As with any used woodworking machine, the key is to make sure that a used CNC machine is (1) sold by a professional seller who industrial safety supplies near me has a good reputation, (2) has a spotless maintenance record, and (3) has been professionally inspected for signs of wear.
You Are Investing in a Larger Workspace
If you are moving to a new facility whose purchase will use up most of your expense budget, upgrading your equipment with used equipment could be the best move. While everyone wants new machines when starting a new venture, buying them pre-owned will make the transition more affordable and let you realize more revenue as profit.
You Need Machines to Meet Increased Production Demand Now
Most woodworkers aspire to high production demand. When that demand becomes overwhelming, woodworkers often find themselves in the position of needing one or more new machines almost immediately.
The problem, of course, is that revenue from increased production demand justifies the machinery purchase, but it cannot be realized without the machinery. In such cases, buying equipment secondhand instead of financing new equipment is the sensible option. Once your revenue catches up with your production rate, you can buy new equipment as you please.
You Are Starting an Official Woodworking Business
If you are going from being a casual woodworker to one who earns a livelihood from his or her skills with wood, minimizing business financing should be a primary goal. The less you owe, the more revenue you can realize as income and put toward developing your production line. Buying used industrial machinery might require financing as well, but remember, the less you finance, the more you earn. For small businesses, this simple relationship can mean the difference between success and failure.
Buying professional woodworking machinery …

Top Five Benefits of Leasing Industrial Machinery

The success of your factory or shop depends largely on industrial machinery. Use of advanced equipment can result in improved productivity, efficiency, quality control and customer satisfaction. However, high end equipment and machinery can be very expensive. Raising enough capital for purchasing these equipment can be quite difficult especially for small business owners with limited resources.
Leasing industrial equipment is a great option for small businesses with limited funds. Reports suggest that nearly $ 5 billion worth of industrial machinery is leased annually in the United States. What is equipment leasing? Equipment leasing is the ability to possess a piece of equipment for a fixed period of time rather than making upfront payment for purchasing it from market. An equipment lease is a rental agreement where the ownership of the asset is maintained by the lessor and the lessee uses the equipment for business purposes. An application for a lease less than $100,000 is usually is as simple as a credit card application. However, leases for an amount exceeding $100, 000 require detailed financial information of the company.
Leasing high end equipment offers several benefits over other financing oak vs cherry cabinets options. Here are few benefits of leasing industrial machinery:
Improved Cash Flow: Equipment leasing has made the process of obtaining advanced equipment very easy. It allows the start-up businesses to get on their feet without going into debt right away. It enables you to acquire and utilize equipment without making a down payment. You require to make minimal initial investment to acquire the machinery. You can use the income producing equipment by making fixed low monthly payments. It helps you to preserve your capital and maintain a steady cash flow. You can use the fund to meet the expenses of day to day business activities.
Free Credit Lines: Leasing of advanced equipment enables you to keep your credit lines free. Opting for equipment leasing is like having a secondary line of credit. It also allows you to plan out a budget and maintain your finances.
Upgrade Your Equipment: Leasing machinery also allows you to upgrade the existing set of food processing industry analysis equipment. It enables you to address technological obsolescence and beat competition.
Tax Advantages: An equipment lease agreement also enables you to secure tax benefits.
Customized Payment Structures: Equipment leasing companies usually offer a wide range of leasing packages and payment structures. You can choose a package depending on your specific needs.
There are few things to keep in mind before signing a lease agreement. Make sure you have chosen a reputed equipment leasing company. Also, thoroughly go through the terms and conditions of the lease contract. In case you are new to the process, it is preferable to seek guidance from an expert to safeguard yourself against fraud.…