Equipment financing for machine shops and manufacturers
CNC machining centers, presses, robotics, and full production lines — financed against the asset, so your working capital stays free for materials and payroll.
CNC machining centers, presses, robotics, and full production lines — financed against the asset, so your working capital stays free for materials and payroll.
$25,000 – $5,000,000
Most manufacturing equipment deals run $75K (a single used CNC mill) to $850K (a machining cell or automated line). Full plant build-outs and multi-machine packages reach $2M+.
Within 15 days
Approval and funding timeline for manufacturing equipment financing.
Manufacturing equipment financing runs 7–22% APR over 36–84 months with the machine as collateral. Application-only approval up to $250,000 means no tax returns and a decision in hours.
Production equipment is strong collateral, but not uniformly so — and that distinction drives your pricing more than most buyers expect. A Haas or Mazak machining center holds value predictably and has a deep, liquid secondary market; lenders will stretch terms and trim rates accordingly. A custom-built line engineered for one part number has almost no resale market, and lenders treat it closer to an unsecured facility: shorter term, more money down, higher rate.
When you request a quote, expect the lender to ask what the machine is, who made it, its year, and its hours or cycle count. Those four answers set the structure before your credit file is even opened.
Used equipment is the norm in machining, not the exception, and lenders are entirely comfortable with it. A well-maintained 8-year-old machining center from a reputable builder often finances on better economics than new: roughly half the acquisition cost against a modest term reduction.
| New | Used (5–10 yrs) | Used (10+ yrs) | |
|---|---|---|---|
| Typical term | 60 – 84 months | 48 – 60 months | 24 – 48 months |
| Rate premium | Baseline | +1 – 3% | +3 – 6% |
| Down payment | 0 – 10% | 10 – 15% | 15 – 25% |
Two things matter on a used purchase. Dealer vs. private party: a dealer or auction house with an invoice and clear title moves quickly; a private-party sale usually needs an inspection and adds a week. Control retrofits: a machine with an updated control is worth materially more to a lender than the same iron with an obsolete one, because the resale pool is larger.
Section 179 lets a manufacturer deduct the full purchase price of qualifying equipment in the year it is placed in service — and it applies to financed equipment, not only cash purchases. A shop that finances a $400,000 machining center with 10% down can potentially deduct the full $400,000 against that year's income having paid out only $40,000 plus a few months of payments.
That is why Q4 is the busiest quarter in equipment finance, and why the deadline is stricter than most buyers realise: the machine must be delivered, installed, and in service before year-end, not merely ordered. On machine tools with 8–16 week lead times, that pushes the real decision point into late summer. Confirm current-year limits and your own eligibility with your CPA — the deduction is a tax question, not a lending one.
Manufacturers frequently need two different things at once, and conflating them is expensive.
| The constraint | Right structure |
|---|---|
| Buying a specific machine | Equipment financing — the asset is the collateral |
| Raw material for a confirmed order you cannot fund | Purchase order financing |
| Customers on 45–60 day terms while payroll is weekly | Invoice factoring |
| General operating gap, needed this week | Working capital for manufacturers |
| Lowest cost on a planned expansion, 60–90 days out | SBA 504 or 7(a) |
A common and effective pattern: finance the machine on a 60-month equipment loan, and run factoring alongside it to cover the receivables lag the new capacity creates. Winning a larger contract usually means waiting longer to get paid on it — the machine solves throughput, factoring solves the cash cycle.
For the full mechanics across every structure, see our equipment financing overview and complete equipment financing guide.
Yes — used machine tools are financed routinely and often make better economic sense than new. Expect a somewhat shorter term (48–60 months on a 5–10 year old machine versus 60–84 on new) and 10–15% down. Age at maturity is the constraint most lenders apply: they size the term so the loan retires before the machine does. Machines with updated controls finance better than the same iron with obsolete ones, because the resale market is deeper.
Anywhere from $0 to 25%. Strong credit (680+), two-plus years in business, and new or late-model equipment from a major builder can reach $0 down. Older equipment, weaker credit, or a private-party sale typically requires 10–25%. Down payment and rate trade against each other — putting more down is often the fastest way to bring a marginal approval into workable pricing.
Not under $250,000. Application-only programs cover most single-machine purchases: a one-page application, a credit pull, and the equipment quote, with a decision in hours and funding in 1–3 days. Above $250,000, or for challenged credit at any size, expect a full package — two years of business tax returns, interim financials, a personal financial statement, and a debt schedule — with a 1–3 week timeline but meaningfully better pricing.
Application-only deals typically approve within hours and fund in 1–3 business days once the vendor invoice is in hand. Full-package transactions above $250K run 1–3 weeks. The most common delay is not underwriting — it is waiting on the vendor quote or, on private-party purchases, the inspection and title work. Having the quote ready when you apply is the single biggest accelerator.
For machine tools, buying almost always wins. A CNC machining center has a 15–20 year useful life and holds resale value, so ownership captures equity you would otherwise forfeit. Leasing earns its place where obsolescence is the genuine risk — inspection and metrology equipment on short technology cycles, or plant IT. Watch the buyout structure either way: a $1 buyout means you own it, while a fair-market-value lease can leave you paying again at term end to keep the machine.
Yes, though the terms tighten. Under one year in business, expect 15–25% down and rates toward the top of the range, with lenders leaning harder on the owner's personal credit and on the resale strength of the specific machine. A liquid, in-demand machine from a major builder is far easier to finance for a young shop than custom or single-purpose equipment. Bay Street shops these files across specialty lenders who actively serve newer manufacturers rather than declining them outright.
One application, no credit impact, and a dedicated specialist to walk you through your options. See what you qualify for in minutes.