The reasons for the popularity are pretty easy to understand: CNC machines are incredibly useful to all manner of industries, and as technology increases, they become more affordable to businesses. In fact, our small and medium business customers finance CNC machines regularly. 

For those who don’t know, the “CNC” stands for computer numerical control. Basically, a CNC machine handles tasks via CAD software that used to be done manually. Cutting, drilling, pressing, shaping… these tasks can now be handled by CNC machines with astonishing speed and precision. So companies can now invest in CNC lathes, drills, cutting tools, routers, and more. I’ve even seen small consumer CNC routers that are perfect for a home garage or amateur/hobby woodshop. Neat.

With the rise in 3D printing, I’ve seen some publications call 3D printers CNC machines. But then I also see videos like this one showing the differences (note – this is also a great video for a basic primer on CNC machines). The stated difference is CNC machines subtract material, while 3D printers add it. That said, the market will eventually bear this out – maybe someday everyone will consider 3D Printers CNC machines (and Crest Capital will still finance it all!) 

On that note, we’re very proud that we’ve been financing CNC machines since our beginning in 1989. We recognized right away how much businesses needed these, and saw the potential for small business CNC machine financing, especially as the technology increased and the CNC machines got more compact in size and the price became more affordable. 

Along the way, we’ve also become experts on these machines, and our reps are well-schooled in how they work, and what type of CNC machine leasing or financing makes the most sense. So whether our customers are buying their first CNC machine (which is always an exciting step) or buying their 10^th, we are honored to help make it happen.

Here it is, the last call for Section 179. As long as you buy the equipment and put it into service by midnight 12/31/2016, you’re in for that fat Section 179 deduction for 2016.

As you likely know, the Section 179 Deduction was raised to $500,000. And it’s generally good for most capital equipment. This means for most small and medium businesses, almost anything they buy for their business qualifies. New machines? Yup. Office furniture? Sure. Office machines? Yes indeed.   

Here’s a partial list that covers most things:

• Equipment (machines, tools, etc.) purchased for business use
• Tangible personal property used by your business
• Business Vehicles with a gross vehicle weight in excess of 6,000 lbs.
• Computers and “Off-the-Shelf” Software
• Office Furniture and Office Equipment
• Property that is “attached” to your company building, but is not a structural component of the building (large manufacturing machines/equipment)
• Partial Business Use Equipment (something that’s used only sometimes in business – the deduction is typically for the percentage of business use)

You can buy the equipment from anywhere, and it can even be used. You can even go down to your local supply shop on New Year’s Eve, buy that machine you’ve had your eye on, bring it back to your company, plug it in and turn it on – as long as you turn it on before midnight on the 31st, you’re good (and literally, I’ve seen people do exactly that!)

One more thing – you can finance the equipment, take the full deduction for 2016, and not even start paying until 2017. That’s a nice little scenario for your 2016 bottom line, isn’t it? New equipment, and a nice tax deduction to boot.

Again, if you are reading this before midnight 12/31, you still have time. Even if it means rushing out to Big Joe’s Equipment Shack at 10pm!

Have a Happy New Year, everyone.