The Importance of Maintenance in Equipment Financing
Equipment financing is a valuable way to get your business the machinery it needs to excel.
With the right equipment, you have an edge over competitors and you can deliver excellent service to your customers. Why is good maintenance important for taking care of your financial investment?
Maintaining Equipment Value
The objective when spending money on your business is to get the maximum value for what you invest. Regular maintenance is key for keeping your equipment in great working order. This means that your money is invested wisely, since every dollar used to buy your machinery produces much more profit for you.
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Increasing Equipment Lifespan
Making your equipment last as long as possible is good financial sense. For construction companies, a bulldozer that lasts for 15 years instead of 10 represents a 33% increase in profits generated by the same financial investment, which is huge. This same principle applies to restaurants, stores, manufacturers, farmers, trucking companies and machining shops. Even company vehicles benefit from regular maintenance so they last another 100,000–150,000 miles on the road.
Avoiding Downtime
Equipment that stops working costs you money while you wait to get it fixed. You may have to spend money renting another piece of equipment in an emergency, or you may have to cancel important jobs for your clients. It’s not fun to pay workers to stand around for nothing because essential equipment is out of commission. With regular preventative maintenance, it’s possible to reduce or eliminate these unexpected problems.
Spending Less on Parts
Vehicle mechanics know that taking care of small problems ASAP is a great way to avoid massive problems. Things as simple as regular oil and oil filter changes, winterizing, lubrication and coolant replacement go a long way to avoid total system replacements. In other words, good engine maintenance is much cheaper than what it costs to replace or rebuild a broken-down engine. The same principle applies to any kind of business equipment.
Increasing Operational Efficiency
When it comes to production equipment, regular maintenance is beneficial for total output. Machinery that runs correctly delivers better finished products and at a faster pace. Worn parts cause you to spend more time cleaning fluid leaks, getting in the way of production. Equipment that is properly maintained can operate at peak temperature performance. Less downtime also means smart use of your employees, allowing you to increase the number of shifts worked and fulfill additional client orders. All of these things boost your profits.
The whole reason business owners select equipment financing over a lease is because they plan on using the equipment for a long time. With regular maintenance, you get the maximum bang for your buck.
