How to Finance an Embroidery Machine

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A baby blanket with the infant’s first name embroidered across the fabric sends this message to her parents: “You care enough about my baby to personalize an heirloom.” Start your own embroidery business and create moments like this for paying customers. But before you start stitching, you must undertake your biggest investment: a professional-grade embroidery machine. Pricey and complicated, the machine will help you create master stitching techniques, which you can learn easily with training and tutorials. Make financing the equipment just as easy by exploring all options.

Borrow the cash to finance your embroidery machine from a bank, credit union or lending institution if you have good credit. Choose a lender with whom you’ve done business as previous loans in good standing verify your ability to manage debt and may qualify you for a non-collateralized loan. Include enough cash to buy a PC if you don’t already own one, since you'll design on your desktop and then transfer the art to the machine.

Apply for a line of credit from a bank or mortgage company if you can't qualify for a non-collateralized loan. Many banks have a minimum amount of funds they’re willing to lend and you may find that the figure is greater than the amount you need to buy the embroidery machine (and PC). Attain your objective and build creditworthiness by taking the larger amount, buying the machine and making an immediate, one-time payment on the line of credit to lower your obligation.

Take advantage of store and/or financing plans offered by makers like Singer, Bernina, Viking, Brother and other embroidery machine manufacturers. Don’t assume that you’ll be made privy to these deals. Some stores advertise finance plans. Others don’t because they want cash, but if you tell your sales professional that you love a machine and you need financing, affordable pay-off options (e.g., companies that specialize in embroidery machine loans) that are perfect for you may suddenly come to mind so he doesn't lose your business.

Answer one of the many “interest-free for a year” credit card offers that land in your mailbox so you can generate revenue while you pay off the amount of the loan in timely fashion. Divide the total by 12 to ascertain the minimum payment you must make on your embroidery machine each month. If there’s any chance you can’t meet the terms of the agreement, find another financing method or you’ll be hit with a huge bill for accrued interest.

Borrow enough cash to buy your embroidery machine outright from a family member or friend with whom you have a close enough relationship to undertake this delicate arrangement. Write up a contract that sets the conditions under which the loan is to be repaid, including dates, amounts and an end date by which your obligation is to be met. Of course you have no plans to take a cousin or friend to court if he calls in the loan early, but if it helps to keep that friendship intact, such an agreement is well worth the effort it takes to write it.