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Why financing manufacturing equipment is important

why financing manufacturing machinery is important

Planet Financial is one of the leading loan firms in Canada. Planet Financial provides flexible manufacturing equipment financing solutions for business owners turned away from traditional bank lending options.  In case you or any of your clients are seeking a beneficial non-bank alternative to purchase or refinance your new or used manufacturing-related equipment and machinery, our team will work with you to help structure your manufacturing equipment loans or manufacturing equipment leasing agreement to suit your needs and you can always get a free inquiry by calling us. We are available 24*7 to solve all your queries and find the right solution for your business.

If you’re looking for manufacturing machinery for sales you can search on Kijiji, Facebook marketplace, or Use manufacturers near you.

Some of the types of Manufacturing machines that you can use for getting a manufacturing machinery leasing are as follows:

  1. CNC Machines
  2. Lathes and Turning centers.
  3. Machining centers
  4. Multi-axis/ Multi-tasking Machines
  5. Metal Fabrication Equipment
  6. Grinders
  7. Press Brakes
  8. Injection moulding machines
  9. Plasma cutters
  10. Electric discharge Machines

When it comes to buying manufacturing equipment, purchasing with cash, financing the equipment, or leasing it can be the options. In other cases, you might have the money available to buy the equipment outright but would rather hold on to it. In many cases, this would be a wise decision as rates are low and equipment financing is a remarkably easy & low-risk endeavour. Generally, all you’ll need for collateral is the equipment you’re financing. Equipment financing loans tend to be easy to qualify for which makes them a flexible option. By utilizing equipment financing, you can expand your business quicker by adding more equipment to your shop than cash reserves and bank financing would otherwise allow. Conversely, when you lease manufacturing equipment, the payment is treated as a rental and at the end of the term, you may have a few options available.  

  • You can return the equipment as agreed by the leasing company
  • You can purchase the equipment outright at a predetermined value
  • You can purchase the equipment outright at the current Fair Market Value
  • You can purchase the equipment outright for a small payment, predetermined in the lease agreement. 

In either of these scenarios, taxes are collected on each payment and treated as an asset rental allowing a different type of depreciation. Think of it as leasing a vehicle, there are many similarities. 

Reasons You Should Finance Your Manufacturing Equipment

By choosing to have the equipment financing you’ll save money, there will be less documentation, and you get to own the equipment after the loan is paid off. Be sure to consult your tax advisor for the Loan or Lease plan that’s best for your Tax situation to achieve the best results. Your time is as valuable as your cash. Obtaining credit for your manufacturing equipment purchase is fast—it also provides flexible repayment options. The industry-wide use of the application-only product has made the process seamless and extremely user-friendly. It takes only minutes to complete the application and, within a short period of anywhere from a few hours to possibly one day, your approval terms are presented and you’re back to making parts. In many ways, leasing equipment can be a more expensive route than financing outright especially if you plan to keep the equipment long-term.

If you are looking to become a manufacturing machine operator at Planet Financial, you can get your Manufacturing Machinery Finance from us. If you want to increase cash flow, you can also opt for Refinancing. Do not wait any longer. If you need a manufacturing machinery loan here is our Document Checklist:

  1. Valid ID
  2. Bill of Sale
  3. Article of Business Incorporation
  4. Last-three-month bank statements.
  5. Credit Application (download it here)

You can email all the documents to marketing@planetfinancial.ca or you can also get your free inquiry at 647-449-6060.

Click that “Apply Now” button to proceed with your desired manufacturing machine loan provider. Some clients will rather have some guidance throughout this process, so we also have the added option for you to pre-apply at Planet Financial. Our team will sort through your information and give you the best rate of interest all over Canada. You can also Sign up for our newsletter for our recent updates and get special offers on manufacturing machine leasing. Please apply online by filling up the credit application for quick approvals for your own or commercial truck loans or call us and book an appointment. We would be happy to serve you.


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