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Paying in Full vs. Financing or Leasing Portable Rollforming Machinery

If you’re purchasing your first portable rollforming machine, understanding the pros and cons of different payment methods can help you find the best one for your business. Learn about the advantages and disadvantages of paying in full vs. financing or leasing your rollforming equipment.

Katie Bowles October 07, 2022

When purchasing portable rollforming machinery, there are very important things to consider, including whether you’ll be getting your equipment new or used, and how you’re going to pay for your portable rollforming: paying in full vs. financing or leasing.

When looking at how you’ll purchase your portable rollforming machine, there are pros and cons to consider when it comes to paying in full for your machine or if you’ll go the route of financing or leasing it. Knowing the advantages and disadvantages of these options can help you make the most informed decision for your business now and in the future.

At New Tech Machinery, we don’t directly finance portable rollforming equipment to you, but we do partner with financing and leasing companies who can assist in getting you the right machinery for your metal roofing or gutter business.

In this article, we’ll talk about:

  • Advantages and disadvantages of paying upfront for a portable rollforming machine
  • Advantages and disadvantages of financing or leasing a portable rollforming machine
  • Considerations to make when weighing which option is right for you

Advantages of Paying in Full for a Portable Rollforming Machine

NTM portable rollforming machines

Buying your portable rollforming machine directly, if you have the funds upfront to do so, can be greatly advantageous for your business. Buying your machine upfront can be good for those businesses that have a steady stream of metal roofing or gutter work already, providing a reliable cash flow. 

Here are some other benefits:

  • Puts profitability into your own business: By paying in full for your portable rollforming machine, you’re putting the profitability directly into your own company, so long as you have enough work to justify buying a machine outright. You also only have this one-time upfront cost for the machine and accessories and don’t have to make regular monthly payments over time.
  • Quick return on investment: If you take on a lot of metal roofing work, gutter installation jobs, or handle commercial projects, you will gather your ROI quicker on your machine. Once your business no longer wants to use the rollforming machine, or wants to purchase new equipment, you can resell the machine and recoup much of your original investment, depending on its condition and the market demand.
  • Section 179 Tax Deduction: In the United States, you can utilize Section 179 to deduct the full purchase price of your new or used purchased, leased, or financed portable rollforming machine from your gross income during the tax year. There are limits to the total amount you can write off of your tax deduction. For 2022, the cap of your write off is $1,080,000 and the cap for the total amount of equipment purchased is $2,700,000.
  • No interest payments: Buying your machine at the full cost upfront means you don’t have ongoing interest payments. Ultimately, you’ll end up paying less for your machine if you don’t finance or lease because you’re only paying the price of the rollforming equipment.

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Disadvantages of Paying in Full for a Portable Rollforming Machine

  • Large upfront cost: Ultimately, paying in full for your portable rollformer means you’re tying up a large chunk of your money into a machine purchase that you may have otherwise been able to use on other expenses (employee paychecks, hiring or retaining employees, purchasing other business equipment, getting a larger facility, etc.). You’ll need to make sure that you’re buying exactly what your business needs, current and future state, and go into purchasing your machine with the right budget expectations, what machinery you can afford and need, and what will best serve your business operations.
  • Increased responsibility: You’ll also need to ensure you have properly trained people / or yourself who know how to safely operate and maintain the portable rollforming machine. Aside from the upfront payment, over the course of owning and using your portable rollforming machine, you’ll also need to consider any service or training costs, repairs, or replacement parts needed in the future.

Advantages of Financing or Leasing Portable Rollforming Equipment

(article) How to & Why Finance Machinery for New Metal Roof or Gutter Businesses

If you’re considering financing, or leasing your portable rollforming machine, there are also some reasons it’s a good idea for those metal roofing or gutter businesses that are just starting up and may not have the initial cash flow for such a large investment. 

Here are some advantages of financing or leasing: 

  • You’re using other people’s money: Essentially, you’re using the financing company’s money to pay off the cost of your portable rollforming machine. This is a great option for those businesses that are just starting out, don’t have a significant cash flow right now, or don’t want to put a large sum of money down at one time. It’s also a cheaper short-term option for getting the rollforming equipment you need immediately.
  • It doesn’t go against your credit report: Depending on how the financing or leasing agreement is set up with the company, it may not appear on your credit report.
  • Allows you to make other business purchases: Since you don’t have to make a large upfront purchase, financing your portable rollforming machine frees up your cash flow so you can make other purchases and keep your business going while making smaller, timely, monthly payments on your equipment.
  • You can finance more than just the portable rollforming machine: Lots of other equipment that you may need for your metal roofing or gutter business (like folders / brakes, company trucks, roof panel or gutter machine accessories) can also be financed. Again, you can spread these payments out into smaller monthly increments instead of a large upfront cost that you may or may not have.
  • You own the machine: If you choose to finance your machine, at the end of the agreement and once the machine has been paid off fully, you do have complete ownership of the portable rollforming machine. This also means you’re responsible for all the maintenance and service that comes with machine ownership.
  • Take advantage of Section 179: If you’re financing, not leasing, the Section 179 tax deduction also applies as it does for purchasing a portable rollformer, as long as it is put into service during the calendar year.

Disadvantages of Financing or Leasing Portable Rollforming Equipment

  • You may end up paying more for the portable rollforming equipment: Financing or leasing your portable rollformer means that you’ll end up paying more for it in the end. There are typically other costs associated with financing or leasing your rollforming equipment like insurance or legal fees, and high interest rates.
  • You may not own the rollforming equipment: While this only applies when you lease a portable rollforming machine, or if you don’t complete the financing payments and the machine gets repossessed, you may have to turn the equipment over to the leasing company at the end of the term.

How to Decide if Paying in Full vs. Financing or Leasing Is Right for You?

portable roof panel machine in front of residential radius roof

Now that you know some of the pros and cons of buying your new portable rollforming machine outright or setting up with financing or leasing, making the decision for your business still involves considering the following: 

  • Consider your current cash flow – Whether you’re considering just buying your portable rollforming machine outright or going with a financing / leasing company, you need to weigh how profitable your business is right now. What does your current cash flow look like? Do you have the funds to afford such a significant investment initially or would it make more sense to break it up into smaller monthly payments? Are you willing to pay the interest rates and additional expenses of leasing or financing? Talking to your accounting team can help you determine if it would be better to have the flexibility of monthly payments or to own the machine immediately.
  • How long will the portable rollforming equipment be in operation – If you only need this machine for a select number of projects, leasing may be the better option. If you’re looking to get a return on investment on your machine and use it long-term, buying it outright is worth considering. 
  • Consider your current backlog of projects – Do you have a steady stream of income from projects to afford paying for a portable rollformer now? Or, are you just starting your gutter or metal roofing business and are still acquiring projects? Understanding your projections for future work and where you see your business growing can help you determine whether buying a machine for long-term use or financing / leasing for short-term operations is better.

Final Thoughts

measuring gutter as it exits portable gutter rollformer

When it comes to how you purchase your portable rollforming machine, buying upfront, financing, or leasing, keep in mind that it is your choice. There’s no right or wrong answer. However, having a full understanding of the pros and cons of each option that’s available to you and what will work best for your business, will ultimately benefit your company’s future.

At New Tech Machinery, whether you choose to pay in full for your portable rollforming machine, or look into financing or leasing, we can work with you and put you in touch with our partners who have helped thousands of clients get the equipment they need for their metal roofing or gutter business.

For any questions about pricing, financing, or roof or wall panel and seamless gutter machines, please reach out to an Account Manager! Just contact us here!

Download the free e-book about buying and owning a portable gutter machine