Welding Finance
What is Welding Finance?
Welding finance refers to the financial solutions available to businesses seeking to acquire welding equipment and machinery. Welding finance options typically involve structured payment plans or loans that allow individuals and businesses to spread out the cost of welding equipment over a specific period, easing the financial burden of upfront investment. This enables welders and businesses to acquire the necessary tools and machinery to support their welding operations while managing their cash flow effectively.
We recently organised welding finance for a client of ours in the ‘performance automotive’ industry. This particular business specialised in fabricating one-off pieces for performance vehicles in Sydney. It followed a typical path where the owner started off fabricating as a hobby, before being approached by more and more clients meant that he officially transitioned into a Sole Trader.
With the increased workload at his doorstep, he found that he had outgrown a lot of the ‘hobby’ level welders and supporting equipment. He needed appropriate financing solutions so that he could upgrade not only to a better welder, but also a lot of the machinery required in the world of fabrication (such as bandsaws, mill/drill and power tools).
We were able to organise the right welding machine financing solution for this client, along with additional funding for the supplementary machinery. He has since been able to complete work much more efficiently and safely, which has allowed his business to expand its online presence and client pipeline.
The benefits of welding finance
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Flexibility: Businesses can choose the repayment terms and frequency that best suits their needs and budget.
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Preservation of cash flow: Rather than tying up a significant amount of capital in purchasing equipment outright, businesses can keep cash flow intact by spreading the cost over time.
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Tax advantages: In the case of a chattel mortgage, businesses may claim tax deductions on the interest and depreciation of the equipment, while repayments for leases and rentals may also be tax deductible.
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Up-to-date equipment: With regular upgrades and replacements, businesses can ensure they have the latest and most efficient equipment.