If you have a construction business then you need to use some heavy machinery like crane, bulldozer, crusher and backhoe. Apart from that, other industrial segments also need some heavy equipment to run their production units. But when you buy these machines, you need to consult with finance companies that will help finance your equipments through some easy monthly installments. In doing so, you can increase your production and your revenue using which you can pay the installments in an easy manner.
Reasons for availing the machinery finance:
- Heavy machines like crane and bulldozer are very costly and it is not easy to purchase these equipments by some startup companies. So, in this regards, when you start your own construction company or you just launch your own industry, you need to take these machines on rent. But rental machines mean a financial burden for your company, because you need to pay the rent as well as the maintenance charges and other hidden fees to the rental company. When taking such machinery on rent, the overheads are high, and yet it does not add to your assets. So in this respect, you can buy these machines on easy finance options, and you can pay the installment per month. After the scheduled period, you do not need to pay any EMI, and you become the sole owner of the machiner. The machine becomes your asset and you can use it to meet your manufacturing needs without any financial burden.
- These heavy machines are necessary equipments for your business and they generate revenue also. For example, cranes help you to lift the heavy products and increase your productions in a convenient manner, and on the other part, the crusher helps you to crush the materials into smaller pieces for your construction business. So you need these machines from the first day of your project, and you have to arrange these machines at the earliest. It is suggested to consult with the machinery finance companies and they can assist you to arrange the money for buying these machines. You just need to submit the required documents and you can avail the spot finance option also.
- Most of the machine finance company provides the equipment loan without any mortgage, and you do not need to mortgage your assets for buying these equipments. But there is some minimum documentation required for these machineries finance, and you need to submit your address proof, business proof along with some banking documents for availing this finance.
What are the benefits of machinery finance?
Machinery finance is a term which is used in the industrial segments because most of the industries and commercial houses avail this machinery finance from different companies. They need to purchase the machines and heavy equipments on finance and they can also try to avail this loan from their respective banks. But most of the banks do not provide this equipment finance and they can provide you the small business upgradation loan for purchasing these heavy machines. For this loan you need to pay extra interest, and it is suggested to contact with the machinery finance consultants who can provide you machine loan at a low interest rate.
- You need to submit minimum documents for this machinery finance and the company will disburse the loan within few days.
- It is important to have a good credit score and if you have such score then you can avail this loan instantly. A good credit score is an indication of your financial stability. It indicates if you have the capacity to pay the monthly installments and whether the bank will be able to recover the money loaned to you.
- You will get the tax deduction for this finance, and you can produce the finance papers to claim the tax deduction from the income tax authority. Investing in machinery adds to your assets well as helps you avail tax benefits for the huge sum which would have otherwise been taxable.
There are some customized finance options available which will match with your exact. Most of the finance companies, in fact, allow loan up to 90% of the total machine value and you need to pay only 10% amount in advance. There are also many government schemes to promote startups as well as other schemes to promote employment generation through which you can avail loans with very low interest.