Financing for the purchase of a vertical storage system?
When buying a vertical storage system such as Vertical Lift Module (VLM) or vertical carousels, there is almost always the possibility of financing the purchase through leasing. The question you may ask yourself is, how does leasing work, and why do you want to do it?
Vertical storage system as security
The leasing of vertical storage systems is made possible by the fact that there are finance companies that know and understand the value of different types of industrial machines and therefore approve them as collateral.
What the finance company does is to act as a lessor between the supplier of the vertical storage system (e.g. Relevator), and you as a buyer – which creates the opportunity to buy the equipment through a monthly cost during the time you use the equipment. In this way, you get a lower and fixed monthly cost rather than a large lump sum at the time of purchase. The finance company in turn makes a small margin in the form of interest.
Why finance?
The reasons why companies choose to finance the purchase of different assets can be very different, but below we list some reasons that might support you in your purchase of a vertical storage system.
Cash flow friendly
As mentioned above, leasing a vertical storage system means that you can get a fixed monthly cost during the use of the machine rather than having to pay a large lump sum at the time of purchase. The fact that you pay over several years is also reasonable given that a vertical lift/carousel is something that is expected to have a long life. Financing of vertical storage systems is usually done over 36 – 60 months, at the end of the lease the ownership of the vertical lift/carousel can be transferred to you as a buyer against payment of the residual value of the equipment.
Example cost when buying for about 40.000 EUR.
Easy to budget and manage
By financing your purchase, you get a very clear picture of what the cost will be every month and year for the use of your vertical storage system. The conditions are fixed, which means that the monthly cost is the same throughout the leasing period.
No impact on the balance sheet
Since you don’t own the machine, you don’t have to worry about depreciation, and the leasing cost is 100% deductible from working capital.
If you are looking at vertical storage systems and wondering about your financing options, you can talk to us. We have close partners in financing and can concretise a leasing offer with cost and conditions. Get in touch using the contact form below or by phone! Under the link here you can see our vertical lift modules and vertical carousels.
