Lathe Finance

Finance Your Lathe

Lathes allow businesses operating in the manufacturing industry to drill and bore, create threads as well as sand and polish surfaces.

The ideal method of financing for a lathe depends on factors such as your business structure and your cash flow.

We can arrange financing for businesses looking into funding the purchase of a new lathe.

What is lathe finance?

Lathe finance is a great alternative to purchasing a lathe outright, as your business can acquire a lathe and use it for business needs, whilst also working with your specific cash flow and business capital situation.

At MAF Finance Group, we can deliver a comprehensive selection of financial solutions to support the purchase of a lathe. Two methods of financing available is hire purchase and a finance lease. Or if you have valuable assets on the balance sheet, asset refinancing may be the best option.

Our manufacturing division is on hand to assist businesses across the UK with any manufacturing related requests you may have.

Types of lathe finance available

Hire purchase: A hire purchase agreement allows you to spread the cost of an asset over a fixed period through fixed monthly repayments. Typically, VAT is paid upfront, but there is an option to defer it for up to three months. Once the term is finished, ownership of the asset will transfer to you.

Finance lease: If owning the lathe is not a priority, leasing could be the perfect solution for your business. With leasing, you rent the asset for a specified period and make monthly repayments, at the end of the lease, you have the option to extend the term.

Asset refinancing: Utilising the equity in an asset on your business' balance sheet is a great way to finance a lathe. With asset refinancing, the asset is sold to a lender, who then leases it back to your business under the agreed terms. This is ideal for businesses with valuable assets but smaller cash reserves.

How does lathe finance work?

When financing a lathe, you put down a deposit, and once that is done, the remaining amount is paid over monthly instalments throughout the duration of the agreement. Whilst you are paying for the lathe, you are not the owner, however, the lathe can be used for your business. With lathe financing, the duration of the term and the deposit can be tailored to your business’ requirements.

Is lathe financing right for your business?

Purchasing a lathe upfront may not be a viable option for some businesses, with cash flow and business capital being put under strain. Through financing the lathe, the cost of the asset can be spread over a longer period, meaning the repayment asset can be financially sustainable.

With flexibility offered through financing as well as a predictable repayment schedule, incorporating the financing into your budget can be done seamlessly, making repaying for the lathe a smooth process.

Applying for lathe finance

MAF Finance Group have strong relationships with a variety of banks and funders, meaning our clients have access to tailored financial solutions.

If you would like to get a quote or need further information, simply fill out our form below and we will be in touch. If you want to speak with us directly, you can call us on 0115 958 6872, and a member of our team will be happy to speak to you. Alternatively, you can email us at [email protected].