Embroidery Machine Financing Deals

Embroidery machine financing deals can give your new business a jumpstart in 2 ways: 3

It preserves your cash.

Provides cashflow right away.

Gives you easier financial access to “jumpstart” bundles.

First we’ll show you the big advantages to financing  a commercial embroidery machine [single head or multi-head machines]. Then we’ll lay out those 3 points so you can make a better decision about your equipment financing options. 

Why Start an Embroidery or Custom Apparel Business?

Starting or growing an embroidery business can be a smart and rewarding decision for anyone that wants to break free from a W-2 job completely… OR that needs to add an extra income side-hustle.   

And it can be a particularly smart choice because the embroidery industry has seen steady growth in recent years and shows no signs of slowing down.  

Here are just a few reasons why starting or growing an embroidery business is a great idea: 

A commercial embroidery machine, as opposed to ones that you can pick up at your local hobby store or Joann’s Fabrics, is designed to produce a wide variety of custom products – and that mean a wide range of customers! 

The demand for custom embroidered items is high and continues to grow. From apparel and accessories to home decor and gifts, embroidered items are popular among consumers of all ages and backgrounds. This demand creates a wide range of opportunities for a business to specialize in specific niches and target specific demographics. 

Think about the number of embroidered polos with brand names and local company logos, any embroidered gift items you might see on Etsy or Amazon, and the decoration on almost EVERY cap.

Embroidery is Compact and Clean so your business can be operated from almost any location. Whether you’re working from a traditional brick-and-mortar store, an online storefront, or a home-based studio, there’s no need to worry about costly commercial real estate.  

A single head machine can fit into a standard closet, or the corner of a home office. This flexibility allows for more creativity in terms of location and setting and can help to keep overhead costs low.  

Contrast that with a automatic screen printing machine or high volume direct to film printer, or even a flatbed UV printer, all of which needs a lot more space.  

Any custom printing machine that uses liquid ink, like a direct to garment printer, direct to film printer or eco-solvent vinyl printer needs REGULAR maintenance. Embroidery machines just need oiled periodically.  

Costs for inks can run into the hundreds of dollars for different colors of ink – and thread is a fraction of a penny for a log design.  

How much does a commercial embroidery machine cost?

The cost of equipment and supplies needed to start an embroidery business is relatively low compared to other types of businesses.  

A commercial embroidery machine and necessary software starts at around $8,000 or $9,000 for a 12 or 15 needle machine made for business bu can go as high at $20,000. 

That price will vary by brand and many technical factors, but the most common for startups includes: 

Please don’t be confused by popular consumer embroidery machine makers whose brand names you might recognize, but who’s machines are really made for crafting -there is a difference! 

Finance Payments for Embroidery Machines

Financing an embroidery machine for your business is very much like any other equipment financing.  

The payment that you qualify for depends on: 

Cost of the equipment

Term of the loan

Credit and/or time in business

The most common length of term is 60 months, but 72 months is also fairly popular. But you can see how the math works even if you use a $10,000 loan amount and don’t include any interest: 

$10,000/36 months = $277.77  

$10,000/60 months = $166.66  

Now those are just the simplest examples [0 interest loans are rarely really a good deal] but that’s a $100+ difference in monthly payments just by adjusting how long you finance for!  

The other factors are even more clear.  

A bank is more likely to give you a lower interest rate if you have great credit, because you’re more likely to actually make the payments on time, every time. That’s better for them.  

And if you have not-so-good credit, Adia Capital can still usually help, but the interest rate will be higher and that will make the payment higher. 

So if you see a payment advertised on a company website that is clearly just a basic estimate based on the best case scenario. 

That payment IS your cost when it comes to running your business on a monthly basis and can vary dramatically depending on the 3 things mentioned above.   

Why Finance an Embroidery Machine vs Paying Cash

The equipment you buy to create custom products isn’t what actually makes you the money – it’s your work, and people KNOWING about that work that brings dollars in the door.  

So, if you have $10,000 or $15,000 you can invest to start your business your cash can better be used for: 

Because if you finance instead of using your cash, even if you don’t spend it on one of the points above instead, your financial situation still looks better: 

Cash Purchase Example

Month 1 Bank Account: $10,000 balance – Buy your machine -$10,000 = Balance $0 

Month 2: Balance $0 

Month 3: Balance $0 

That’s because it takes about 90 days for most start ups to start generating sales. In month 4 it might look like this: 

Month 4: Balance $500 

It can actually take you 6-12 months to re-fill your back account for that $10,000 – then you start actually making money.  

Financed Embroidery Machine Example (using $250 sample payment)

Month 1 Bank Account: $10,000 balance – Down Payment (optional) -$1,000 – first payment $250 = $8,750 

Month 2: Balance $8,750 – $250 = $8,500 

Month 3: Balance $8,500 – $250 = $8,250 

The important math in this scenario is when you start making money in Month 4! 

Month 4: Balance $8,250 + $500 profit = $8,750 

Month 5: Balance $8,750 + $750 profit = $9,250 

Month 6: Balance $9,250 + $1,000 profit = $10,250 

These numbers are clearly not exact and are just designed to illustrate the idea that when you finance an embroidery machine instead of paying cash you are in a much better position to cash flow QUICKLY.  

Bundles can JUMPSTART your business!

As we said, simply owning an embroidery machine, or any customization equipment, isn’t what actually makes you the money. It’s getting people to buy from you that does that. 

BUT owning multiple ways to create custom products can give you access to more potential customers and the opportunity to make more money selling to the ones that find you. 

For example, embroidered pillows are a good seller and very profitable. But the same audience that buys embroidered pillows might be in the market for getting photos printed onto pillowcases. 

And a small company that comes in looking for embroidered polos may also buy custom printed t-shirts, or UV printed pens, or signage for their vehicles. 

Depending on your goals, if you finance your equipment, you can typically ADD ANOTHER product line to your shop right away! 

What if, for example instead of spending $250/month on a multihead embroidery machine payment, you added a white toner printer or t-shirts, or print and cut machine to print decals and signs and ended up spending $500/month? (Just example payments, of course) 

You would have TWICE the opportunity to grow. TWICE the opportunity for profit. Plus it could get your business to cash flow even sooner! 

Steps to Embroidery Machine Financing

If you have already selected your embroidery machine you can visit our Applications page and put in the pricing, vendor information and we can respond with approval in 4 business hours.

Then we would work directly with your vendor and you regarding the rest of the purchase process.

If you would like to get PRE-APPROVED before you make your equipment deal, that’s a great idea! It often gives you a leg up on getting the best pricing – just like getting pre-approved for a house or a car purchase.

In that case just put “none” in the Equipment Seller space and describe the kind of equipment you’re interested in, like “multi-head embroidery machine” in the Equipment description area. Estimate how much you think it will cost (don’t forget the Jumpstarting Bundle idea!) and we’ll get started on your approval process too.