Most modern businesses are reliant on machinery, whether it be office PCs or construction machinery. This machinery can often be expensive to buy and run. However, many company owners fail to realise the true extent of these costs. Here are some of hidden costs to be wary of when buying machinery so that you can factor them into your budget.
Few company owners can buy business machinery outright and so often opt for loans and finance schemes. Whilst these finance schemes can make machinery more affordable upfront, you still need to be careful of the interest fees in the long run. High interest loans could add to your monthly bills and make it harder to repay your debts, so you want to try and keep the interest low. Bank loans and peer-to-peer lending loans can offer some of the best interest rates, although having a health credit score helps. You can shop for low business loan interest rates at sites like Expert Sure.
A commonly overlooked cost when buying machinery is the delivery costs. Certain machinery may need to be delivered from abroad, whilst other machinery may need to be delivered in parts and then assembled/installed by professional on arrival. There may also be cases where cranes and lifting equipment are needed for heavy machinery – such services can be found via companies like Ranger Lifting. Make sure to budget these expenses in as delivery could cost you hundreds extra in some cases.
Some machinery can use up a lot of power to run. This can result in high electricity bills. When choosing business machinery, it’s important to be wary of the machine’s energy efficiency. Generally older machinery is less energy-efficient than newer machinery. Companies such as Finessecs specialise in energy saving solutions for businesses and could be worth considering. Make sure to also turn off and unplug machinery that is not in use to save further money on your bills.
It’s important to also consider maintenance costs when buying machinery. Certain machinery may need to be serviced regularly and there may be repairs that need making. When buying machinery consider reviews so that you check which machines are most reliable – such machines are less likely to require repairs. New machinery is likely to require less regular maintenance than old machinery.
Be careful of buying machinery that is overly complex for your needs. You could waste money and time having to train yourself and your employees to use it. Some heavy equipment such as forklift trucks may even require a license to operate – consider whether this equipment is necessary to your business and whether you need to then invest in training.