Midbrook Offers Leasing on New and Refurbished Equipment
Jackson, MI (Vocus) November 14, 2008
The new leasing arm of Midbrook, Inc. (a Jackson, MI based producer of production parts washers, water bottling equipment, medical device cleaning equipment, and sheet metal fabrications) will offer customers an affordable financing solution to assist in obtaining new equipment.
Customized equipment is an expensive proposition for most companies. The benefits of a customized washing process utilizing a specifically designed part washer or water bottler, however improves the quality of the product and strengthen the manufacturing process. With financing from Midbrook, manufacturers will now be able to gain the benefits of custom equipment while staying within a tight budget.
“Financing offers several advantages to companies in the market for a new industrial part washer, medical device washer, or piece of water bottling equipment,” said Midbrook Sales Manager Jamie Crowley.
Affordable fixed payments and the ability to maintain credit lines while purchasing new equipment for production helps manufacturers diversify quickly, change models seamlessly, and launch new programs soon after the previous programs are completed.
“By financing a new piece of equipment, companies also keep capital in their business by investing the saved capital back into the business, compounding the earnings and off-setting a sizeable chunk of the financing payment.” added Crowley.
Also, increasing liabilities decreases available credit lines for a business. The more a company borrows, the bigger the reduction in their available lines of credit. A financing payment is treated differently by banks. This payment allows companies to retain short-term credit and improve access to working capital.
A financing plan also helps companies beat inflation. Depreciation is minimized by paying for the machine with tomorrow’s progressively weaker dollars. With the money saved by financing, the company can expand their budget to acquire inventory, construct a larger work facility, hire more workers, or any number of other improvements.
Midbrook leasing offers companies fixed payments as well. The payment will remain the same throughout the term of an agreement, helping companies avoid fluctuations in the money market. Fixed payments also aid in planning future budgets for the business by eliminating unknowns.
Lease financing gives a company access to 100% of the proceeds to finance the equipment. A standard bank loan can require as much as 30% of the loan amount to be retained, which only allows the company to receive 70% of the proceeds. In addition, leasing also can be treated as a fully deductible operating expense, subtracted from pre-tax income.
Financing eliminates this obstacle in the process – allowing your company to budget its expenses to income. Companies can use the equipment while they pay for it.
“Owning the equipment does not produce profits for the company, using the equipment does. That is why we have found this method of getting the equipment into our customer’s facility. So they can become more profitable and we can all grow as we are able to take advantage of new opportunities within the marketplace.” said Crowley.
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