Financing your machine tools is crucial for your business, especially if you rely on machine tools to complete most of your business tasks. But purchasing this type of equipment is going to be expensive as technology changes, which is why you have to study the market and identify which are the best options.
Thankfully, there are lots of companies that focus on financing machine tools. Finding the right financing partner is going to be a priority, as you want to get that machine as fast as possible. With that in mind, there are some options that you can take into consideration.
What companies should you choose for machine tool loans?
Each one of the financing companies mentioned has a different approach towards this market. According to the latest statistic data, it seems that lenders have around 400-500 filings for machine tools each month, at least that was the case in November 2017.
However, when it comes to the companies that actually delivered the necessary machine tool loans, these were CNC Associates, Banterra Bank, DMG MORI USA, Ellison Tech, and Hartwig. The thing to keep in mind here is that CNC Associates offered no less than 73 different financing opportunities to its customers.
Banterra Bank was in second place, but the reality is that they offered around half of the loans, or 39 in total. This shows that CNC Associates is a lot more productive and proactive on this type of market. It is an incredible opportunity for people that need machine tool loans, as they get to receive a rather impressive deal without that much of a problem. The other companies had around 32 loans each (Ellison Tech and DMG MORI USA) or 30 (in the case of Hartwig).
Another thing to note is that these top 5 companies had around 42.6% of the total market. Considering that there are more than 20 lenders focused on the industry, it is safe to say that most of the market is split between these 5 companies.
Which were the top machine tool buyers?
As you can imagine, these assets are needed by some companies, so which were the top buyers that used these machine tool lenders? Companies like Kennametal, TE Connectivity, Aerofit, C&C Machine Control as well as FMI Holdings were the major machine tool buyers, at least for the past few months.
Financing options are very important for all buyers, as it makes it easier for them to obtain high-quality results and improved efficiency. Plus, they don’t have to support the massive acquisition costs for such a tool right off the bat. They are free to wait a little bit until they get the results they want, and in the end, that can be quite helpful for their business. This is why machine tool lenders continue to be a very important part of the industry. Not only that, but both buyers and machine tool lenders benefit from a boost in sales in this industry.