Manufacturing & Fabrication

The CNC machine that is three years into a five-year note is sitting on equity. So is the press brake you bought used and paid off early, and the laser cutter that has been running double shifts since you installed it. Manufacturing equipment depreciates slowly on paper but holds value in the real market, and that value can be cash in your account this month.

Cash-out equipment refinancing is not just for heavy iron in a field. Metal fabricators, precision machinists, plastics manufacturers, and assembly operations use it to pull growth capital from their production floor equipment without disrupting a single shift.

We start at $50,000 per transaction. Most manufacturing operators fall between $100,000 and $600,000 depending on the equipment and how many machines are in the transaction. Funding typically takes one to two weeks from a complete application file.

The production floor contains multiple categories of lendable collateral. The primary classes we see:

• CNC machining centers and mills. CNC machine refinancing is a high-demand transaction in precision manufacturing. Haas, Mazak, DMG Mori, Okuma, and similar brands hold value well. A 5-axis machining center paid down halfway through its original term often has substantial extractable equity.
• CNC lathes and turning centers. CNC lathe refinancing works for both standalone turning centers and multi-tasking machines in a cell configuration.
• Press brakes and stamping equipment. Press brake refinancing applies to hydraulic and servo-electric units. Amada, Bystronic, and Trumpf press brakes carry strong residual values.
• Laser cutting machines. Laser cutting machine refinancing covers fiber laser and CO2 flat-bed and tube laser systems. These machines depreciate slowly because demand for laser-cut parts continues to grow.
• Injection molding machines. Plastics manufacturers with injection molding machines paid down on the original note can access equity the same way as metal fabricators.
• Industrial robots. Industrial robot refinancing applies to Fanuc, Kuka, ABB, and Yaskawa robot cells in automated manufacturing environments.

Manufacturing businesses carry significant fixed-asset value relative to their working capital position. A shop with $2 million in CNC equipment may have $150,000 in the operating account, creating a real tension when a large order arrives that requires tooling, raw material inventory, or additional headcount.

Equipment equity solves that tension. The production floor becomes a balance sheet tool, not just a cost center. Cash out of a paid-down CNC machine goes toward raw material for the new contract, fixturing for the next program, or a down payment on the equipment that clears the bottleneck on the current line.

Manufacturing companies in precision machining corridors like Grand Rapids, Cincinnati, and Milwaukee use this structure regularly because the equipment investment is high and the cash-on-hand discipline required by precision manufacturing often leaves equity idle for years.

Manufacturers have two primary structures available. Cash-out refinancing uses the machine as collateral, pays off any existing lien, and sends proceeds to you. You retain ownership and the machine stays in the production plan without any operational change.

Equipment sale-leaseback is the second option. You sell the machine to a lender at market value, lease it back under a structured term, and receive the full sale price in cash. The machine continues on the production schedule. Monthly lease payments replace the prior note or start new if the machine was paid off. Sale-leaseback often generates more cash than standard refinancing, particularly for machines that are fully paid and where the loan-to-value cap would otherwise limit proceeds.

For manufacturers who care more about maximizing cash than maintaining ownership of specific machines, sale-leaseback frequently wins on the numbers.

Application, three months of business bank statements, and equipment details. For CNC equipment, we need the builder, model, year, control type (Fanuc, Siemens, or Mitsubishi controls on a machining center affect value), and the current payoff if any. For laser systems, the laser type and wattage are relevant to the valuation.

Manufacturing companies sometimes carry compressed credit profiles because of the capital structure of the business: high equipment debt, tight margins, and customer payment terms that stretch. We work with B and C credit. The B/C credit program is available and regularly used by small and mid-size manufacturers. If tax season produced a complicated return, or if there is a prior credit issue, apply and let us look at the current file rather than the historical one.

Tell us the machines, the payoffs, and what the capital is for. We will value the equipment and come back with a real term sheet the same day. No commitment needed to see the numbers.

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