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Independent machine intelligence · Research before the decision
THE MACHINEBLUE BOOKResearch · Market · Ownership
MBB Explains · Film 12

What an Idle Machine Still Costs

The machine is having a quiet month. The bills are not.

Open the machine ownership guideMore MBB Explains films
MBB Explains · 56.5 secondsOriginal MBB animation · English captions

About this film

The machine is having a quiet month. The bills are not.

Bronto explains which cash obligations may continue during downtime, and why depreciation is not a fresh bank transfer.

Example assumptions

$4,000 unavoidable monthly cash outflow minus $0 job contribution = $4,000 funding need in this toy example. Allocated overhead is not automatically incremental avoidable cash cost. Depreciation is noncash, not a fresh outgoing payment.

Educational boundary

General educational information only, not an offer of financing, a recommendation to borrow, or individual financial, tax, legal, engineering or safety advice. All dollar amounts are USD. Bob, the finance representative and their situations are fictional. Numerical examples are hypothetical, not current offers, market benchmarks, normal rates, quotes or promises of approval or return. Eligibility, terms, fees, tax treatment, ownership rights and laws depend on the actual agreement, jurisdiction and circumstances. MBB is an independent information resource, not a law firm, and is not acting as your lender, broker, attorney, accountant, financial adviser or site engineer. Consult appropriately qualified professionals and read the actual written terms before deciding. Commercial equipment credit does not automatically receive consumer mortgage protections.

An MBB Explains short, narrated by Bronto. Fictional illustrations turn machinery questions into something a little easier to understand.

Independent machinery knowledge. Understand the numbers before deciding.

Original MBB animation with synthetic Bronto narration. Narration: synthetic Bronto voice. The film uses English captions as a separate track, so they can be turned off.

Read the complete transcript

Bob’s machine has no work this month. It is resting beautifully. Unfortunately, the lender has not agreed to join it, and neither has the landlord. When production stops, some variable costs fall. Loan payments, rent actually payable, insurance and some maintenance may continue. Some labour costs remain too. Check what actually changes. If four thousand dollars of unavoidable cash outflow remains and the machine generates no contribution, Bob needs four thousand from reserves or elsewhere in the business. Depreciation can continue in the accounts, but it is not a fresh cash payment. Keep accounting profit and cash survival distinct when modelling downtime. A quiet machine can be remarkably loud in the bank account. Explore ownership questions at Machine Blue Book. General education, not individual advice.