XYZ makes financing new machine tools as easy as ABC

The scheme operates in 12-month blocks, with a single payment equating to 29% of the machine's purchase price being made at the beginning of the period, with nothing to pay for the following 11-months. At the end of each 12-month period, the user has three options, these being: to return the machine to XYZ Machine Tools; buy it outright at a pre-agreed price; or extend the rental period for another year with a single payment. The subsequent rentals are based on a reducing percentage of the original machine cost and at the end of four years, which is the maximum length of the XYZ Machine Tools rental agreement, the machine can be purchased for a final 20%. During the first year, the machines are covered by XYZ Machine Tools' extensive warranty. This can be extended up to a maximum of seven years, if there is no break in warranty cover. There is also another scheme available with a more modest outlay where machines can be rented "by the week" on a minimum 3 month term. This is a major advantage where a customer may be waiting for finance from local grants to be finalised. In cases such as these, if the customer decides to buy the machine inside the first 12-month period, 50% of the initial rental is returned. For small to medium-sized companies who are working in an extremely competitive environment, this ability to upgrade machines to latest technology can mean the difference between winning work and losing it. Says Nigel Atherton, managing director, XYZ Machine Tools: "We are seeing a wide variety of customers taking up this attractive offer of either short- or long- term rental of machines, from manual turret mills through to CNC machining centres and lathes. Start-up and smaller customers appreciate the simplicity of the application process, which is all funded by XYZ Machine Tools, so banks are not involved. Larger businesses also benefit, as the rental is much easier to gain approval for than a full capital sanction and, in accounting terms, can be used more efficiently by removing debt from the balance sheet."