Repair or replace
A repair quote and a replacement price are not comparable on their own. Here is a three-year method that counts downtime, future repairs, financing cost and what the machine is worth at the end, for any industry.
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Updated October 13, 2026 · Merchant Fund Express
Comparing a repair quote with a replacement price almost always favors the repair, because it leaves out the next three years. Put both on a three-year sheet: what you pay now, future repairs, days of downtime times what a down day costs, running costs, financing cost, and what the equipment is worth at the end. The cheaper total wins, and the biggest swing factor is usually downtime.
A common shop rule says replace when the repair exceeds half the replacement price. It is a useful first screen, but the example below shows a repair at about a third of the replacement price that still comes out more expensive once downtime is counted.
Take a print shop whose main production press needs a $31,000 rebuild. A new press is $96,000. Each down day costs about $1,200 in lost gross profit.
| Line | Repair | Replace |
|---|---|---|
| Paid now | $31,000 rebuild | $9,600 down payment less $8,000 trade-in = $1,600 |
| Financing payments | None if paid in cash | 36 × $2,900 = $104,400 |
| Repairs in years 2 and 3 | $12,000 | Covered by $2,500/yr maintenance = $7,500 |
| Downtime | 18 days × $1,200 = $21,600 | 4 days × $1,200 = $4,800 |
| Extra energy and consumables | $3,000/yr = $9,000 | None |
| Worth at end of year 3 | −$6,000 | −$52,000 |
| Three-year net cost | $67,600 | $66,300 |
Repair: $31,000 + $12,000 + $21,600 + $9,000 − $6,000 = $67,600. Replace: $1,600 + $104,400 + $7,500 + $4,800 − $52,000 = $66,300. Almost a tie, so the assumptions decide it.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Write down your own downtime cost first. It is the number most owners guess low.
The cheaper answer is not always the one you can pay for this week. The repair needs $31,000 now; replacing needs $1,600 now and $2,900 a month.
| Path | Net proceeds | Total repayment | Payments |
|---|---|---|---|
| Repair, funded as working capital | $31,000, assuming no fee | $40,300 | 40 weekly payments of $1,007.50, Fri Oct 23, 2026 to Fri Jul 23, 2027 |
| Replace, equipment financing | $86,400 financed | $104,400 | 36 monthly payments of $2,900, Nov 16, 2026 to Oct 16, 2029 |
If your business clears our first tier (3+ years, 650+ FICO, $25,000 a month in revenue), a line of credit from 1% per month is usually cheaper for a repair you can pay back within a few months. Otherwise revenue-based funding needs 6+ months, a 600+ FICO and $60,000 in verifiable revenue. Equipment is often financed separately through equipment financing, where the machine itself supports the deal.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Industry examples: restaurant equipment, commercial refrigeration, courier vans and heavy equipment. For the tax side of buying, see Section 179.
Build your own three-year sheet with the seven lines above, using your real downtime cost. If the winning path needs $25,000 or more, check your file with the qualification checker; it does not affect your credit.
A common rule is to replace when the repair exceeds half the replacement price. Treat it as a first screen. A three-year comparison that includes downtime and resale value is more reliable.
Take the gross profit the equipment produces in a normal day, then add overtime, rentals or outsourcing you pay to work around it. Use your slowest season if you are unsure.
Yes. A funded repair costs more than a cash repair, and a financed replacement costs more than its sticker price. Compare totals you will actually pay.
Our funding starts at $25,000. Smaller repairs are usually better paid from cash or a card.
A great deal. A new machine still worth half its price after three years is a much cheaper choice than its payments suggest.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
