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OCTOBER 2021 I SMT007 MAGAZINE 61 Figure 4: Achieving a smart factory by using 3D inspection process information. vestment. Of course, many companies opt to purchase the equipment. Owning the equipment your business uses to operate gives you the highest degree of control over how you manage your resources. You can sell the equipment at any time or continue to use the equipment for years if that use remains productive. When you buy capital equipment for your business, you own the equipment, get the use of the equipment for as long as it lasts and can depreciate the cost on your taxes. With a lease, you trade some of that control for more simplicity in the operation of your business. With a lease, the equipment is deliv- ered, you make the payments, and the equip- ment is either purchased or removed at the end of the lease. You spend little or no time manag- ing the equipment compared to if you owned the equipment. Leasing the equipment instead of buying might cost more in terms of cash flow, but leasing comes with its own set of ad- vantages. Leasing as a Viable Alternative Why is it important for electronic manufac- turers to have the right financial solution for SMT investments? e world is changing fast- er than ever before. While some equipment can inherently withstand the pace of change, oth- er equipment cannot keep up with the tech- nological or business challenges. Many equip- ment suppliers are just not able to provide fu- ture-proof equipment solutions, which means many electronics manufacturers are investing in equipment for upward of 10 years with the in- herent risk the equipment will not fit their busi- ness model or production needs in the future. Leasing is a solution to overcome this issue. Lease companies can provide 100% financing with a $1 purchase option. is approach al- lows the manufacturer to pay for equipment as the equipment pays for itself with produc- tion runs. Some firms offer options to increase working capital by deferring the initial lease payment for up to 90 days. e application process once deemed complicated and bur- densome has evolved. For instance, credit ap- provals up to $500,000 can be obtained with- out financial statements for qualified custom- ers. is requires only a one-page credit ap- plication; a credit approval can be obtained in only a few days. Manufacturers can lock in low finance rates for as long as seven years. ere is a reason equipment leasing has been and will remain a viable option to help acquire capital equipment.