When investing in new machinery or upgrading existing production lines, the first obvious thought is cost and how it will impact on cash reserves.
This is especially prevalent in situations where our customers have won new contracts but their existing production line cannot meet demand - and they don’t quite have the cash reserves to buy new machinery outright. Here businesses face a typical catch 22 situation – not enough cash to invest outright but vital for them to grow and stay ahead of the competition. On top of this their other credit lines may be tied up with existing bank loans and so credit options are limited.
In this instance, many of our customers have turned to the Lease to Buy option. This is where a business can invest in whatever equipment they need, but spread the cost over 5 years or less. Not only can they start using their new equipment straight away, but they can fix their maintenance costs by including preventative maintenance in the same deal.
Additional benefits of the Lease to Buy scheme include:
· You own the asset but pay over time
· Fixed rates of interest from the start of the agreement
· No additional deposits
· Optional balloon payments, providing more flexibility at the end of term
We have teamed up with Reality Finance, a leading provider of Asset Finance for the Manufacturing Industry.
If you are looking to invest quickly into new production lines or any of our products and would like to explore Leasing, please do give us a call and we can provide you with a quick indicative quotation.
To find out more or discuss your finance options please email sales@pal.co.uk