Printing Equipment Financing
As a printer or a designer, creativity is a staple of producing a unique product. But the creativity cannot stop at the drawing board. Sometimes, just to get your business going, you will need to be creative to get your facility and your equipment together. Financing or leasing your printing equipment is a great idea for those without large amounts of capital to invest.
Benefits of Printing Equipment Financing
Here are a couple of quick considerations for why you may want to finance or lease your Printing Equipment:
- Preserve Cash
- Flexibility of Keeping or Returning Equipment
- Avoid the Pitfalls of Technical Obsolescence
- Tax Benefits
- Improves Debt Ratios
- Fixed Rate and Payment Options
- 100% Financing
As always, and especially today, cash is king. If you can manage to finance your largest assets and save your cash for other working capital needs, your business will be able to stay ahead of the pack. The most important thing to keep in mind is that your printing equipment is an income producing asset, and it will pay for itself.
Types of Printing Equipment
Generally speaking, most printing equipment is considered to be good collateral. Larger pieces of equipment like the ones mentioned below can be financed from 1 to 7 years:
- Bindery Equipment
- Paper Cutters
- Printing Presses
- Digital Printers
- Computers & Software
- Furniture
It is not easy replacing large, complex pieces of equipment like this on a regular basis. A couple of considerations for that thought is deciding between a capital lease and operating lease. A capital lease will offer you the ease of purchase at the end of the lease term and allow you to keep the depreciation. The operating lease can potentially get you to a lower monthly payment and allow you to improve your debt ratios. And if you can afford the payments, it may also be a good idea to choose a shorter financing term in order to avoid committing your business to a long term lease or loan. Which ever option you choose, you can rest easy that you will not pay a single dollar for that piece of equipment until it earns you a dollar.
