Is Leasing Equipment Right For Your Manufacturing Business?

Print shop (press printing) - Finishing lineYour manufacturing business demands solid machinery to complete any of its daily duties. When your equipment or machinery fails or needs updating, it can be detrimental to your business cash flow. When you can’t afford to purchase new equipment, your business workflow and reputation will suffer greatly. Thankfully, there are many affordable options that will allow you to get new equipment to make your business run better than ever.

Leasing Equipment Using Non-Recourse Manufacturing Factoring

It is typical for business owners in the manufacturing business to be faced with cash flow problems. Because of the invoice based nature of your work, you are constantly waiting for invoices to be paid and processed – putting your business’s finances at risk. Non-recourse manufacturing factoring is the process of selling your outstanding invoices or account receivables to a factoring company who then advances up to 96% of its total without incurring any additional debt. You can expect the following with non-recourse manufacturing factoring:

No Risk To Your Business’s Credit

With non-recourse manufacturing factoring, there’s absolutely no risk to your business’s credit. With non-recourse factoring, the factoring company steps in and takes on 100% responsibility if your customers default or neglect to pay their invoices. This is a major advantage to businesses that are just starting or that are in the midst of major growth. As your cash flow is low, you won’t have the funds available to pay back the factoring company for your client’s negligence, but with non-recourse manufacturing factoring, you’ll never have to worry about this again. Your business will be able to have the cash to lease equipment for your business and even more in your pocket to fund growth and other expenses.

Gives You The Ability To Update Equipment More Frequently

By leasing equipment with your new found source of working capital, you will never have to settle on one piece of equipment. You will be able to have access to new and updated machinery more frequently. Not only will this increase your business’s efficiencies, but it will also save you major costs from repairs and breakdowns.

It’s Affordable

Although you have to make regular payments on your new leased equipment, you may find that it’s easier to afford. With leasing, you’ll save hard earned money on repairs and other services to the machinery. When you utilize non-recourse manufacturing factoring, your business will be able to keep cash in its pocket that can be used for other expenses rather than just repairs. You can expect:

  • Fast and easy application/approval process
  • No additional debt to your name
  • Fast financing
  • Stable source of working capital, and much more

Won’t Have To make Long-Term Commitments

In the manufacturing industry, you come across projects where a special tool or piece of machinery is needed. Rather than making a long term commitment with a purchase, a lease will allow you to have the equipment for what you need – when you need it. Utilizing the benefits of non-recourse manufacturing factoring combined with the many benefits of leasing equipment can save your business countless dollars.

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About the Author:

Robert Bernfeld started in the commercial finance industry in 1974. His early years included positions with Aetna Business Credit and Foothill Group. During the next thirty five years. Mr. Bernfeld established both equipment leasing and accounts receivable factoring companies. He partnered in founding Business Facilitators, Inc. in 1999. Mr Bernfeld graduated from the University of California, Riverside in 1974 and received his Juris Doctorate from Loyola University School of Law in 1977.

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