Deciding when to add new embroidery or screen printing machine isn't easy. When your equipment is your lifeline, an unreliable machine can mean losing opportunities and business revenue to your competitors. Planning a fail-safe for when your equipment breaks down or needs an upgrade can ensure your business keeps moving in the right direction.
However, with the uncertainty revolving around today’s economy, you may be wondering where do I begin? Beacon Funding has been funding embroidery equipment and screen printing equipment for over 30 years. We talk to decorated apparel business owners daily about how to acquire equipment while maintaining financial stability.
Watch the video to learn how to determine if your business’ capacity to take on new equipment.
While we may be in a buyer’s market, the decision to acquire new equipment should come down to your own business’ need and ability to take on another machine. Fortunately, there are tools like a breakeven calculator and a financing pre-approval to help you better visualize what you can afford.
Using a breakeven calculator will determine how many tows per month, your business needs to perform to afford a monthly equipment financing payment. A useful breakeven calculator will also allow you to customize the revenue per tows to customize the results to your business.
Analyzing the Results
When you use it, the goal shouldn’t just be to breakeven with your equipment. Factor in your other business expenses like materials, insurance, marketing, repairs, staffing, etc. to get a realistic idea of if a new piece of equipment fits into your budget.
You can try the breakeven calculator for yourself here.
A pre-approval is a simple financing plan that allows you to budget and plan for new equipment. By applying for a pre-approval, you can find the terms of a potential financing plan without any commitment. Pre-approvals let you see details of a possible payment plan that a simple quote wouldn’t offer.
The best thing is that they are in no way binding. When you apply for an equipment financing pre-approval, you aren’t entering into a legal agreement. They are a commitment-free way to determine how much you can afford to spend on your next equipment purchase. Applying for a pre-approval isn’t a trick to get you locked into a financing agreement; it will help you plan and budget.
You can learn more about pre-approvals here.
We're Here to Help
By considering your business’ demand, staffing needs, and your financial position, you’re well on your way to understanding if now is the right time for you to take advantage of the current buyer’s market. However, you don't have to go it alone. Call 847.897.2499 to talk with an equipment financing expert and explore the options available to your business.