CNC Machine Shops

The machines on your shop floor are your most valuable assets. A paid-down Haas VF-2 or a Mazak turning center a few years into the note is sitting on equity you could be using for the next fixturing program, the next materials buy, or the next machine acquisition. That is cash locked in a lien position rather than generating returns in your operating account.

We structure cash-out refinancing specifically for CNC machine shops and precision machining operations. The transaction is simple: we place a lien on the machine, pay off any existing balance, and wire the net proceeds to you. The spindle keeps running. You get the capital.

Minimum transaction is $50,000. Application-only processing is available up to roughly $400,000 without requiring tax returns. Funding from a complete file runs about one to two weeks.

CNC machine shops run a range of equipment that all qualifies for collateral-based financing. The primary categories:

• Vertical and horizontal machining centers. CNC machine refinancing covers both VMC and HMC configurations. Haas, Mazak, Okuma, DMG Mori, and Fanuc-based machines from most builders have active secondary markets that support real collateral values.
• CNC turning centers and lathes. CNC lathe refinancing applies to standalone turning centers and multi-axis turning machines. Late-model turning centers in production cycles carry strong residual value.
• Multi-tasking machines. Turn-mill centers and Swiss-type machines are high-value, specialized equipment that frequently qualifies for refinancing despite their specialized nature.
• EDM equipment. Wire EDM and sinker EDM machines from Mitsubishi, Sodick, and Charmilles hold value and can serve as collateral when the machine is active and well-maintained.
• Grinding machines. Surface grinders, cylindrical grinders, and centerless grinders from manufacturers like Okamoto, Studer, and Blanchard have established secondary market values.

The Fanuc and Siemens CNC control systems that power most of this equipment are widely supported and understood by secondary market buyers, which strengthens the collateral value compared to proprietary or older control systems.

Precision machine shops carry a unique financial profile. Equipment investment per employee is high. Margins are often tight, squeezed between competitive quoting and rising material costs. And the work pipeline requires capital commitment, tooling, fixturing, programming time, and raw material, well before any invoice goes out.

The result is that most shops are simultaneously asset-rich and cash-constrained. The machines on the floor are worth more than the bank account reflects. Refinancing bridges that gap without requiring outside investors, without triggering a facility refinancing, and without competing for a bank line of credit that may not exist for a small precision shop.

CNC job shops in contract machining corridors including Indianapolis, Cleveland, and Greenville, South Carolina use this structure to fund new contracts before the first shipment bills.

The application is quick. Provide the machine details: builder, model, year, control type, approximate hours, and any existing payoff. Three months of business bank statements round out the documentation for transactions under $400,000.

We pull secondary market comps for your specific machine configuration. Haas and Mazak equipment, for example, has robust auction and dealer transaction history that makes valuation straightforward. We issue a term sheet showing the loan amount available, the rate, the term, and the monthly payment. If the terms work, you sign and we fund.

The application-only structure is what makes this practical for a busy shop owner. No two years of tax returns, no waiting on an accountant to compile packages. The machine and your bank statements tell the story. Above $400,000, we will want financial statements, but even that process is efficient.

The machine shop owners who get the most out of this program share a few characteristics. They have machines that are two or more years into the original note, or machines purchased outright that have appreciated or held value in the secondary market. They have a clear use for the capital: a new contract, a tooling investment, or the down payment on the next machine.

This is also particularly useful for shops that are transitioning from job shop work to program work. Landing a multi-year manufacturing program often requires capital investment in fixturing, gauging, and inventory that does not show up in the quote until the contract is signed. Pulling equity from existing machines bridges that gap.

For machine shop owners who want to compare this to an equipment line of credit, see equipment line of credit options and working capital versus equipment financing for context on how the structures differ.

Give us the machine list, payoffs, and what you need the capital for. We come back with a real term sheet, not a range, the same day you apply.

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