Financing a computer numerical control (CNC) machine can change how your small business operates, putting this highly useful machine within reach. Learn more about CNC machines and the ease of leasing one through Clicklease.
A CNC machine is a highly functional piece of equipment used to create objects. It has uses in nearly all industries because it can manufacture items from plastic, aluminum and other metals, wood, and various hard materials.
Renting a CNC machine is an option, but the cost falls between $75 and $120 an hour, making it a cost-prohibitive option for many small businesses. The rental fee rarely includes the materials used or the computer design time, which means the total cost will be much higher.
If you only need a CNC machine for one object, renting one might be a cost-effective option. However, when your business has long-term needs, it’s worth investing in your own machine.
Investing in a CNC machine is a major decision for your company, so it’s important to take some time to research what you can expect and which machines might meet your business needs. We’ve outlined a few common considerations to review before making a purchase.
A CNC machine needs space and electricity to operate properly. The machine should have sufficient room to function if your company has warehouse space. However, if your business utilizes a smaller space, consider the costs associated with renting or leasing a larger area for the machine.
Additionally, the amount of energy a CNC machine will use during operation factors into the total cost. Different sizes and models have different energy consumption needs, so try to get an idea of the usage of the machines you’re considering and include that in the overall cost.
Cost of MaterialsThe materials used in a CNC machine also impact the total cost of operation. If your business uses cheaper materials, such as acrylics and plastics, the cost will be lower than a business that uses steel, brass, or other types of metal materials.
A CNC machine is a powerful tool that can work in complicated details to carve and create objects with extreme precision, but it doesn’t work on its own. A technician programs, maintains, and oversees the machine during operation. This ensures that any mistakes can be resolved before wasting extensive time and materials.
The cost of labor depends on the rate of the technician who operates the machine. When calculating the cost of CNC machine ownership, include labor in the total.
All CNC machines are expensive pieces of technology, as a result, few small companies or businesses have the capital to purchase them outright. Financing options allow businesses of all sizes to buy their own machinery and maximize the benefits of CNC machine ownership.
Taking out loans to finance expensive equipment is often a necessary part of doing business, particularly when a company relies on costly machinery to manufacture products. If you’re considering financing, make sure to review several key components of the contract:
One of the most important considerations in financing for a CNC machine is the financing terms. All terms of the deal should be provided in writing, and you shouldn’t sign anything unless you agree to everything outlined.
When reviewing a contract for CNC machine financing, take your time and make sure you understand every section. If you ever feel rushed or pushed into the sale, walk away or ask someone with experience in the industry to look at the document. You can always request changes to the term or work with a lender that better aligns with your company's needs.
By taking the time to understand the terms of the loan or financing, nothing will surprise you. You won’t face hidden fees or charges because the contract will outline any financial requirements clearly. Reviewing the contract takes time, but being meticulous about understanding and negotiating the terms will help you in the long run.
When applying for financing for a CNC machine, you may learn that your credit score is lower than expected. But when you’re financing a business purchase, the lender looks at several factors besides your credit score.
It may be difficult to qualify for business financing, but leasing is a different story. Clicklease is here to provide the runway needed to purchase CNC machines. We welcome applicants with all credit scores and don’t run a hard credit inquiry. Our process is also quick and efficient, and customers can pick their own payments.
When you lease a business purchase, you may be able to separate it from your personal finances. This means that your personal funds and assets aren’t on the hook should you fail to meet the terms of the loan. However, it’s important to review the term to better understand whether you’re applying as an individual or a business.
Interest rates should play a major role in your decision about financing for a CNC machine. The rate you qualify for factors into your monthly payment and how much you’ll pay over the life of the loan. Even half a percentage point can cost you thousands.
It’s also important to review whether you’re getting a fixed or variable interest rate on your loan. A fixed rate remains the same throughout the loan term, while a variable rate can change over time.
Each has its pros and cons, but generally, taking on a loan with a variable rate comes with more risk. If national interest rates skyrocket, your monthly payment could go up accordingly, impacting your business budget.
If you are looking for an affordable way to lease your CNC Machine, Clicklease offers affordable payments that will empower you to buy now. Take advantage of leasing options that are great for small business owners.