CNC Machine Financing | 11 Tips for Purchasing a CNC Machine
By: Gizmo Machine
Tags: Financial Planning, Cnc, Cnc Machine, Finance Management, Finance

CNC Machining is a great asset, as it allows you to control machine tools for your business. Although in the long-run a CNC machine can save you tremendous amounts of time and money, in the short-term coming up with the funds to acquire a CNC machine may be challenging. Fortunately in this CNC Machine Financing guide, we will take a look at a few financing options for your business. Additionally, we will provide you some tips to help you finance your equipment while avoiding any pitfalls that may hinder your purchasing decision. With that being said, let’s get started.

Tip #1 — Analyze Your Current Needs

First things first, before purchasing a CNC Machine you need to identify what your current needs are. There are a multitude of CNC Machines that are available on the market so doing your research is critical. A great place to start would be to analyze a few buyer guides and consult with reviews to see what type of machine makes the most sense for your business.

Here is a list of a few guides we have written in the past that should help you determine what type of CNC Machine makes the most sense for you:

Used CNC Machine — The Ultimate Buyer Guide Used Injection Molding Machine — Factors to Consider Before Buying Used Milling Machine — What You Need to Know Before You Buy Benefits and Comparison of Horizontal and Vertical Machining Centers

Tip #2 — Identify Your Financing Options

Financial Leasing Agreement — Financing Loans — Hire Purchase Plan — “Under this arrangement, a lender buys the asset and hires it to your business for an agreed time. These are similar to standard equipment loans and typically don’t require any additional security” — ( “these will typically allow you to finance the full purchase amount. Ownership passes to you at the time of purchase” — “These repayments are structured in a way to have residual value, giving you lower monthly payments, plus options at the end of the lease period” — (

Tip #3 — Buy in Bulk (Or in this case Bundles)

Another great way to save money on machine purchasing is to buy in bulk or in this case, bundle. Many times suppliers will offer additional attachments for CNC machines that are included in the overall initial offer. These attachments could include items such as, chip blasters, dust collection system, coolant tanks and updated software programs. Although in the short-term they may seem like an additional cost, it is critical to analyze the potential savings in the long-term.

Another way to bundle to maximize future benefit, would be to purchase maintenance and warranty services during the initial buy. Reputable suppliers will usually offer a maintenance or service package as part of the purchase contract. Although costly in the short-term, buying these add-on services can mitigate future risk on the owner while reducing long-term costs.

Used CNC Machines Used Injection Moulding Machines Used Manual Milling Machines

Tip #4 — Buy Used Machines

Another way to save money on your initial purchase of a CNC machine is to look for used alternatives. Although creditors prefer financing new machines, you can always negotiate if you are working with a reputable CNC Machine supplier. Considering that new CNC Machines could cost up to $500,000 per machine, used machines from a good supplier can work just as well and do so at a fraction of the cost.

If you are looking to buy a used CNC Machine, take a look at these possible options that may be of interest to you:

Tip #5 — Get Pre-Approved Financing

Getting pre-approved financing is also a great measure to take before buying a CNC machine. By doing this, you can better measure the current state of your financials and better assess your overall cash flow position. This can help prevent unanticipated financial losses or potential cash flow problems. Realizing this, it would be recommended to look into getting pre-approved financing prior to seeking out or placing an order for a CNC machine.

Tip #6 — Prepare a Financial Forecast and Analyze Cash Flow

Lastly, when looking to finance a CNC Machine make sure to analyze how financing a new CNC Machine will impact your bottom line. Consider purchasing during times of high cash inflow (usually as a result of seasonality) to avoid unanticipated losses.

Also try your best to see the best form of investment for your CNC Machine. Take into account the asset’s useful life to avoid paying for an asset too quickly which could hurt your cash flow position.

Bonus Tips for CNC Machine Financing

Adding on to the main tips, here is a list of additional bonus tips to help you make a proactive decision when it comes to CNC Machine Financing:

Pitfalls to Avoid

In addition to the tips for CNC Machine Financing, here is a short list of pitfalls you should avoid in order to make a systematic decision:

Why Should You Work With Gizmo Machine Tools Inc?

All in all, making a good decision for buying a CNC Machine stems from working with a trusted supplier. With that being said, if you are looking to learn about our financing options for CNC Machines you can check out our company Gizmo Machine Tools Inc . We are a Canadian corporation servicing internationally in buying, selling and trading of machinery. It was initially started by a group of professional engineers with over 18 years of experience in the manufacturing industry. Ever since then, the company focuses on providing customers with an alternative to expensive new machinery. Whether you are looking to tool up for a job or replace existing capital equipment, we have you covered. If you have any questions about financing or any general concerns feel free to contact Gizmo Machine Tools Inc . Also feel free to follow us on our Facebook to stay in the loop!