How to Finance a Welding Machine
Financing tools and supplies for your business can be a convenient way to free up capital for other costs. This is especially true of industries like forestry and construction, where the price of large equipment, such as tractors, drills, and bulldozers can be high. Some lenders provide financing for amounts as low as $5,000 dollars to as high as $5 million, depending on your credit conditions and business needs. One thing you might want to finance is a welding machine.
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Instructions
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Attend welding school. If you are not already a journeyman welder, visit the Welding and Testing Institute, for instance. It has training programs and testing facilities to get you certified and licensed as a professional welder. Once certified, you can later use this as leverage to secure welding jobs and the capital needed to finance your equipment.
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Contact a distributor of welding equipment. Find one that will allow you to negotiate a lease to purchase the welder through monthly installments. Check out Welding Depot, or Weldmark. Companies like these offer flexible repayment terms, competitive interest rates, and they allow you to maximize tax deductions. Inquire about the cost of the equipment and the details of the payment programs.
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Set up a welding shop and stock it with safety gear. An important part of welding is safety and companies such as Jackson Safety Brand provide welding safety equipment like helmets and protective goggles, as well as welding benches, curtains and protective blankets. Financers may require proof of safe welding practices in your shop before lending to you.
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Secure a loan through a state or county, development agency. Many of these agencies help with financing and their rates are lower than commercial sources. The U.S. Small Business Administration has a subsidy called the "America's Recovery Capital" program to provide developing small businesses up to $35,000 to purchase supplies and equipment. If you have taken the steps to become a certified welder and can provide a lender with proof of welding jobs to come, you may also be able to secure a loan for welding equipment with a commercial lender. Contact a lender such as ProFed and inquire about its small business equipment loan program.
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References
Resources
- Photo Credit the electric welding image by Victor M. from Fotolia.com
