Plant & machinery is an essential investment for any manufacturing business. It is important to understand the factors that come into play when purchasing plant machinery to ensure that you make the right choice.
Here’s everything your business needs to know:
Maintenance and Repairs
Regular maintenance will help to keep your asset in a good condition and prolong its lifespan. You should consider the cost of maintenance and repairs before purchasing. Its worthwhile also making sure that you can access replacement parts easily, to minimise the cost and time of repairing your equipment.
Safety should be a top priority. You should make sure that the machinery you buy comes with adequate safety features to protect your employees and the machinery itself. This could include emergency stop buttons, safety interlocks, and guards. If the asset doesn’t come with these required features, you may need to factor purchasing them into your budget.
Capacity and Efficiency
When purchasing plant machinery, consider the capacity and efficiency of the machinery. Ensure that the plant and machinery meets your production needs and is efficient in terms of energy consumption and productivity.
Tax benefits and capital allowances
From April 1st 2023 for a three year period, businesses will be able to fully expense any new plant and machinery equipment purchased.
If you’re looking to buy new plant and machinery equipment, speak to your accountant to make sure you are benefiting from the full expensing scheme.
Consider asset finance
Purchasing plant and machinery using your own funds can eat into your business’ valuable cashflow. It’s worth considering purchasing plant and machinery through asset finance, as it will allow your business to spread the cost over a period of time with monthly repayments. This means you could purchase new equipment more easily and not use up your cash reserves.
If you're thinking about purchasing new plant and machinery, see what finance you're eligible for.