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September 29, 2021

Machinery Loan on Fabrication

    • September 29, 2021
    • By Team Kinara
    • < 1 mins read

    Machinery Loan

    Metal fabrication is a vital and diverse service. Many industries rely on metal fabrication to operate and keep functions running smoothly. Major industries like mining, energy, construction, automotive, transportation, and even medical tools/appliances need metal fabrication.

    But what is metal fabrication? Metal fabrication refers to any process that cuts, shapes, or molds metal material into a finished product. Rather than assembling an end product from ready-made components, fabrication creates an end product from raw or semi-finished materials. There are numerous fabrication manufacturing processes, and the process used is determined by both the starting metal material and the desired end product. Fabrication is used to create both custom and stock items.

    When it comes to buying new machinery or metal processing equipment, especially for your small business, you may be worried about financing your purchase. Suppose you are looking to expand your small business and need more/new equipment to meet production goals. In that case, a machinery loan on fabrication can help you continue production with as little downtime as possible.

    Get a collateral-free machinery loan in just 24-hours!

    Reasons to Opt for a Machinery Loan on Fabrication

    • Increases Efficiency

    nvesting in equipment that allows employees to work more efficiently and reduces manual and repetitive tasks can boost efficiency and overall productivity. The same is true for any new equipment that does more of what is required, only faster, safer, and with higher quality, simultaneously producing less waste, less maintenance, less resource usage, and requiring less human interaction.

    It is important to note that productivity and efficiency gains and their drivers can result in significant cost savings.

    • To Stay in the Competition

    Businesses that postpone or avoid purchasing new equipment, especially MSMEs, risk losing customers and contracts to competitors who do. New technology equipment can reassure customers, whereas new industrial equipment with increased speed or a broader range of capabilities can entice customers.

    However, it's not just about customer perception or a company's reputation. Depending on the industry and type of company, a lack of new equipment can make it difficult, if not impossible, to take on new work and provide the requested new products and services.

    • Improved Safety

    Even when well-maintained, older equipment can pose a safety risk. If an employee is injured on the job, high costs may be incurred due to worker's compensation and other costs. Especially in manufacturing or construction industries, the damage or loss can be far more devastating than you can imagine. Depending on the equipment, it may use packaging or specific materials to help reduce the risk of environmental damage as well.

    • Helps You Take Ownership

    Some small businesses prefer to lease rather than purchase new machinery. One of the drawbacks of this option is that your business will be at the mercy of the leasing company. You will be unable to make necessary updates or changes to the equipment unless the leasing company permits it. Therefore, you may have to rely on the leasing company to perform necessary maintenance.

    When your business buys its own equipment, it has the flexibility to make changes as needed. If the equipment outlives its usefulness to the business, it can be sold, and the company is not required to follow the rules of a leasing company. In addition, there are tax advantages to owning your own equipment.

    Why Choose Kinara Capital?

    Fabrication businesses are expanding as we continue to benefit from the prolonged economic recovery. With older equipment being replaced and new equipment being purchased for expansions, small shop owners also have an ever-expanding range of financing options at their disposal.

    However, banks are still typically conservative, lending only to strong businesses with a positive performance and outlook record. Therefore, a fabrication company may be required to provide a robust financial package, including audited or reviewed financials, in order to qualify for a loan.

    We, at Kinara Capital, offer machinery loans or fabrication/asset purchase loan to help improve your business productivity. You can get your machinery loan on fabrication disbursed in as fast as 24 hours without providing any collateral. With minimum documentation and a flexible process, you just need to fill a quick eligibility form online in your preferred language.

    One of our happily satisfied customers is Karthikeyan AS of ASK Three Star Steels. He secured the required funding from Kinara Capital after being denied by reputable banks. After receiving the asset purchase loan from us, he was able to upgrade his business's machinery and improve his product's quality. All this, in turn, led to a tripled turnover from Rs. 1 Crore to Rs. 3 Crore in a year!

    Thus, we enable MSMEs in the manufacturing sector to purchase machinery and increase their production capacity and efficiency by providing equipment finance loans.

    Check your eligibility for an asset purchase loan in just 1-minute!

    Apply Now
    Written by
    Team Kinara
    • Tags
    • Asset Purchase Loan
    • Unsecured Machinery Loan
    • Fabrication Loan
    • MSME loan

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