Creative ways to finance the next machinery purchase

Buying new machinery isn’t something that is done on a whim - it takes planning and a clear idea of the benefits and costs. Plus, most importantly, the buyer needs to work out the best way to pay for it. The right piece of kit can transform a business, but the upfront cost can be prohibitive. The good news is there is more than one way to raise the money and not all of them involve emptying the company coffers.

For many firms looking to invest in new machinery, asset finance is the most straightforward option as the buyer agrees a repayment plan with a specialist lender, the machinery acts as the security and the cost can be spread over a manageable period. The benefit of asset finance is that the buyer can start using the new equipment straight away without tying up all their capital.



It is also worth checking if a supplier offers part-exchange. If the buyer is looking to upgrade from a reliable, well-kept machine that is no longer quite up to the job, they may be able to offset some of the cost. Even older kit can still have value in the right market and a decent trade-in deal can make a surprising difference to the bottom line.

Freeing up cash
If borrowing doesn’t appeal, they buyer can take a look at the assets they already own. Sale and leaseback arrangements are one option - selling a piece of equipment or even property to a finance company and then leasing it back from them. The business gets a lump sum without losing access to what they need to run their business.

If time is of the essence, the buyer could choose to raise funds personally. That could mean dipping into savings, taking out a personal loan, or even deciding to sell a house fast to release funds. Using a company like We Buy Any Home is a great option for this - not only is the service fast and straightforward, you also get to take charge of the timeline and pick a completion date to suit you.

Banks and finance companies aren’t the only places to look for funding. Depending on the nature of a business and the project, there may be grants or low-interest loans available, particularly for upgrades that improve efficiency or reduce environmental impact. These can be competitive, so it is worth getting yan application in early with a solid case for the investment.

Peer-to-peer lending and crowdfunding have also grown in popularity. They can be faster to arrange and in some cases, businesses find investors who understand the specific needs of the sector. If new machinery will help a business launch a product or service with broad appeal, it could be a good fit.



Ib summary, the important thing is to look at the full range of funding options out there before deciding. The right funding approach will enable owners to invest in their business without stretching their resources too far, and that means they can focus on making the most of their new equipment from day one.