Buying machinery for your business is a crucial task by all means. You should keep several things in mind including the prices, production output and workforce management among others. You should thus compare the benefits of buying new equipment as opposed to used equipment for your business.
New machinery and its perks:
Once new machines are purchased, companies get access to more advanced methods of production and this automatically increases overall efficiency. New machines come with warranties and better customer service and there are lower chances of breakdowns as well. This new machinery will entail a major investment however. This is where you can consider an equipment loan to finance the same.
Old machinery and its benefits:
Some will argue that buying old machinery can sometimes be a better decision, particularly if there are lower funds available. These machines cost less and this helps the business save a lot of money initially. However, there are issues pertaining to longevity and efficiency which persist in such situations.
Buying refurbished machinery:
Refurbished machinery can also be purchased. This is basically equipment which has been disassembled and then upgraded. There are several advantages here since you get updated equipment at lower rates. There are warranties included along with customer service. However, one should be careful with regard to thoroughly checking the actual condition of these machines prior to purchasing. This is because a few dealers may only clean the machine and undertake a few basic repairs without major upgradation.
Also Read: Decide Between New and Used Equipment When Buying for Your Company
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.