In the middle of the last decade, just before the financial crisis, there was a major surge in equipment financing. Since that time, many companies (the ones that survived) have slashed payrolls and delayed capital expenditures due to economic conditions and general uncertainty. Even with the recovery gaining some momentum, many companies still remain very conservative.
Equipment that is not heavily used, or is at risk of obsolescence, can often be kept in use for 12 or 15 years. But a forklift or a tractor, for instance, can only run for so long. There comes a point when the cost of maintaining a piece of equipment outweighs the cost of investment. If such a piece of equipment was financed five years ago, its useful life is rapidly drawing to a close.
Whether you’re a beverage company updating your bottling line or a forest products manufacturer upgrading to a new lathe, newer technology can often provide increased automation, faster throughput and greater productivity. Smart business owners are continually weighing the cost-benefit of updating and upgrading equipment. Is it time for you to replace your aging equipment?
Apply with Harbour Capital today.