After you’ve made the choice to purchase new equipment, there are several options to consider when it comes to the actual payment process as well. Options we will discuss in this article include cash purchase, bank loan, third-party financing, and borrowing from a family member or friend. It’s important to consider your business’s financial situation and needs, as well as each option’s advantages and disadvantages.  Cash Purchase   Cash is great, and so is not paying a lender interest over time (one advantage of paying cash).  As soon as the cash changes hands, you own the equipment free and clear, all the while lowering your monthly operating costs. While those are good points, they are not the only considerations.   When you are ready to add a new automatic press and are thinking of paying for it with cash, you will want to make sure using that payment method doesn’t negatively affect your business operations. There are always going to be operating costs – marketing, building lease, consumables, employees, insurance, taxes, and more.  Prior to using your company’s cash, make sure you have a good understanding of your current operating costs, and perhaps most importantly, make your best guess at what future costs might be as well. Every screen printing business is different so there aren’t too many more specifics we can really offer other than the obvious – Make sure you have enough cash set aside (after the purchase) to cover your operating costs. Here is an example to illustrate the point: Your business has operating costs of $10K per month. You have $60K saved up and now want to purchase an auto for $50K.  If you use $50K of the cash reserves, you will reduce from 6 months to only 1 month the ability to keep your business going, should the unexpected happen.   If you were to finance the equipment for a monthly payment of $1K, you would make your total operating cost $11K a month while leaving your $60K in the bank. This payment option would also keep your almost 6 months of operating expenses available.   Bank Loan  The bank is a great way to finance a press and potentially the cheapest access to money you have. Most small businesses turn to their bank when money is needed, and understandably so. Spending a little time getting to know who is holding your money and building a relationship with them is not a bad idea. They typically hold your checking and savings accounts and other assets your business has. For this reason, they can be (or should be) able to offer the cheapest financing. However, there are still things to consider:   We have seen the transition away from small “handshake” banks, and most credit decisions are now passed on to one main or larger underwriting firm. These decision makers don’t know or understand you, your business, or the equipment you are purchasing. Because of this new way of handling loan applications, banks are not [...]

Upgrading to an automatic press is no doubt a significant step in your business growth. Now that you’ve made that decision, it’s time to consider the ancillary items that go hand in hand with this upgrade. If you haven’t made the decision to purchase an automatic press, be sure to read the article in our March 2023 newsletter, 6 Reasons Why You Should Upgrade to and Automatic Press. These ancillary items may seem less significant, but they play a crucial role in ensuring the efficient operation of your printing business. In this article, we’ll look into these products and explain their importance. Compressor / Chiller At a minimum, you will need a compressor that produces enough PSIs (pounds per square inch) and CFMs (cubic feet per minute) to properly handle the requirements of your auto press. At this time, you may even want to consider future purchases that require air. PSI is the amount of pressure that the air compressor can generate and is typically measured at the outlet of the compressor. CFM refers to the amount of air that is delivered at a given pressure and is typically used to evaluate airflow capacity. The higher the CFM, the longer it can power or operate without needing to recharge. The chiller is a needed device for your compressor and offers several benefits. Essentially, it cools down the compressed air in your compressor, which reduces the operating temperature and improves the quality of the compressed air by eliminating moisture and contaminants that can cause damage to downstream equipment (specifically, your automatic press). There are two common options when you purchase: piston-driven and screw-driven compressors. Piston-driven uses pistons and cylinders to compress air, while screw-driven uses rotating screws to compress air. The advantage of piston-driven is that they are less expensive with fewer moving parts; the disadvantage is that they are generally less efficient and produce more noise and heat, as well as consume more energy. Screw-driven are more expensive but offer the advantage of efficiency and performance – they can operate at a constant speed without overheating. The choice between piston and screw compressors depends on the specific needs of your business. Dryers / Flashes / Attachments A crucial consideration is the need for a larger dryer. Automated printing significantly improves your output and you will need a dryer to handle the workload of these larger runs. A larger dryer will prevent bottlenecks in your production and increase the output capacity of your entire shop. Larger dryers can be powered by electricity or gas, and each offers a specific set of advantages. The topic of dryers is easily a stand-alone segment, so for this article, when considering a larger dryer, keep in mind the following: belt width, oven chamber, rate of production, and power source. When deciding on a flash, a key component is the balance between function and speed. Some flashes allow you preserve a printhead (color) by [...]