How to Buy an Embroidery Machine without Spending Your Entire Savings

By Amber Stevens| Oct 14, 2021| 2455 Views
How to Buy an Embroidery Machine without Spending Your Entire Savings

When your equipment is your lifeline, an unreliable machine can mean losing opportunities and business revenue to your competitors. Vetting and understanding different purchase methods is an excellent way to be proactive about your business's success.

Whether you're just starting, expanding, or planning a fail-safe for when your embroidery equipment breaks down – you're not alone. Getting the equipment you need shouldn't require risking your life savings. This article will act as your guide to help you determine which purchase method is best for your business needs.

How Will You Pay For Your Embroidery Equipment?

Deciding Between Cash, a Lease, or a Bank Loan.

Cons of Buying Embroidery Equipment in Cash

Convenient and cost-effective? Many people say cash is king. However, if your business is cash poor buying with cash can delay your business success. Ask yourself, “What potential revenue streams am I missing out on by waiting to acquire equipment?” If you are currently experiencing issues with limited production output, slow turnaround times, and inability to expand your service offerings – it may be time to consider a faster purchasing method.

Large Hole in Your Balance Sheet:

Without a substantial cash flow, making large cash purchases makes it hard for start-ups and even growing businesses to survive incidentals. Depending on the brand, age, and size of your embroidery machine, you could be spending anywhere between $8,000-80,000 or even more. If your business is like most, keeping more cash in your business is key! Don’t let your savings take a substantial hit for one expense.

An employee calibrates a brand new machine that was financed with Beacon Funding.

Benefits of Leasing Embroidery Equipment

Get your equipment faster while saving your cash:

Unlike cash purchases, equipment leasing allows you to acquire equipment, while still conserving cash for things like marketing and payroll. Plus, you no longer have the wait time to save up enough cash. Leasing is cost-effective, convenient, and can offer flexible financing options built for your business.

Quick Approvals:

With the rising demand for digital application processes, it’s now faster and easier than ever to get approved for embroidery equipment financing. For example, Beacon Funding, a 30-year veteran of the equipment financing industry, has a 100% digital application process that takes less than 5 minutes to complete. You can be approved within 24-hours.

A business owner calculates their embroidery machine's low monthly payment with Beacon Funding's mobile app.

When will your equipment make you money if you finance?

The best thing about financing is your equipment can pay for itself. Our Break-Even Calculator will calculate how much volume per month you'll need from your equipment to break even on its monthly payment. You could be making revenue from the equipment sooner than you think. Get answers all from our mobile app!

Download the app to calculate your break-even point now >

Cons of Getting a Bank Loan:

High barrier to entry for young businesses: Loans may be the most cost-effective form of financing for businesses with long-standing banking relationships. However, banks often have stringent underwriting criteria that make it difficult for smaller, growing companies to obtain funding.

If you’ve been in business less than two years, or have credit challenges, consider working with a lender that offers a wider approval window. Beacon Funding has a history of approving start-ups and challenged credit.

Which factor is most important when you select a payment option?

Let's recap: Equipment financing is the way to go when you need equipment but don't have the cash (or don't want to spend it).

Prioritize Finding the Lowest Monthly Payment! Beacon Funding specializes in help start-ups, challenged credit, and established businesses get the lowest monthly payment they qualify for.

  • If you are looking to lock into a lower monthly payment, ask your financing consultant about 60-month terms and/or a 10%-FMV purchase option.
  • If you’re looking to keep initial expenses low, ask about Beacon Funding’s Buy Now, Pay Later programs. This form of equipment leasing will allow you to begin producing revenue before regularly scheduled payments are required.

A smiling business owner is smiling after hearing her embroidery business was pre-approved for affordable equipment financing.

3 Steps for Buying an Embroidery Machine with Equipment Leasing

  1. Before you start shopping, get pre-approved.
    The key to affordability is staying within your budget. Getting pre-approved for embroidery equipment financing requires no cost or commitment. It will also help you assess the monthly payment you can comfortably afford.
  2. Consider shopping for both new and used embroidery machines.
    The great thing about working with Beacon Funding is that the age of the equipment isn’t an obstacle to acquiring financing.
  3. Once you find the equipment make and model you need, contact your financing consultant.
    They’ll help quickly get your digital paperwork in order so you can secure your dream machine.
Amber Stevens

Amber Stevens

P: 800.866.6396  |  EContact Me

As Creative Director, Amber Stevens collaborates with Beacon Funding industry experts to write informative content on the commercial truck and decorated apparel industries.