Having the right tools for a fabrication or assembly is essential in getting the job done, whether the project requires tube bending, tube end preparation, presetting, or general cutting and deburring. Obtaining the needed equipment can be challenging, however, when overhead costs are involved. Parker Hannifin’s Tube Fittings Division is one company that is taking steps to ease the pressure. Parker TFD is making its equipment more accessible through a variety of programs, including a one-year, 0% financing option on new equipment purchases through June 30, 2008.
An important first step is to determine whether leasing, renting, or buying is the best solution. In many cases, reasonable and flexible terms will make equipment leasing the logical choice. Parker TFD has partnered with Vendor Lease Management Group to offer two leasing programs: Lease to Own and Long-Term Rental.
Lease to Own makes it possible to acquire equipment without depleting cash reserves or capital equipment budget. No large cash down-payment is required, which helps preserve working capital while building equity in the equipment. Up to 100% financing also makes more equipment more affordable, providing access to equipment that might otherwise be out of financial reach.
Flexibility is another benefit. If production needs change, an option in the lease allows customers to upgrade to a larger piece of equipment. Financing terms offer reasonable interest rates and can range from one to five years. At the end of the agreement, the customer owns the equipment. This approach may also offer tax and accounting incentives — consult a tax advisor.
Long-Term Rental (renting for six months or more) has distinct advantages as well. Customers can match production equipment needs with current business conditions without any obligation to keep the equipment at the end of the rental term. Monthly payments are generally lower and customers have the option to purchase the equipment at the end of the lease, with 70% of their payments applied toward the price. The lease can also be extended month to month.
Both types of lease programs are offered through participating Parker distributors, with the financing agreement established between the customer and Vendor Lease Management Group.
Parker also offers Short-Term Rentals of used equipment, an ideal solution for a specific project or for a period of less than six months. Customers simply use the equipment and then return it.
The rental terms are established directly between the customer and a Parker distributor. Payments are generally competitive with the lease or buy programs, and there is greater flexibility for the rental time period.
Finally, purchasing the tooling or equipment outright can be the smart choice if the equipment will be used long term or on a daily basis. Liquid capital or a loan is often used to make the purchase; customers should consult a tax advisor for implications of a capital equipment purchase.
