Machine tool financing for manufacturers
Machine tools are the broadest equipment category on the floor, from a $25,000 surface grinder to a $600,000 horizontal boring mill. Because the class covers such a wide price band, the structure that fits varies more here than anywhere else.
Typical ticket
$15K to $900K per machine
Term
24 to 84 months
Down payment
0% to 15%, higher at auction
Useful life
15 to 30 years for well-maintained iron
Directional ranges, not offers. Funding runs up to 100% of equipment cost at roughly 7% to 18% APR, and your number depends on your credit, revenue, time in business, and the machine itself.
What we place
- Manual and CNC mills, lathes, boring mills, and radial drills
- Surface, cylindrical, centerless, and tool and cutter grinders
- Band saws, cold saws, and cutoff equipment
- Hydraulic, mechanical, and servo presses
- Auction and liquidation purchases, including rigging in some structures
- Rebuilds, retrofits, and sale-leaseback on owned iron
What underwriters check on machine tools
Auction versus dealer purchase
Auction buys need funds committed before the hammer falls, so get approved ahead of the sale. Expect more down and a shorter term.
Machine value versus ticket size
Under roughly $25,000, application-only programs dominate and pricing is driven almost entirely by credit.
Age of the iron
Older manual machines hold value well but fund on shorter terms, because funders match the term to remaining useful life.
Rigging and installation cost
On heavy iron this can be 10% of the purchase. Some funders roll it in, most do not. Confirm before you commit.
How the math tends to run
| Line | Illustrative figure |
|---|---|
| Used horizontal boring mill | $180,000 |
| Rigging and installation | $18,000 |
| Term | 48 months |
| Illustrative rate | 12% APR |
| Estimated monthly payment | about $4,700 on the machine alone |
An illustration, not a quote. If rigging is not funded, budget it as cash on day one.
What trips these deals up
- Auction terms often require payment within 3 to 5 days. Approval has to be in hand before you bid.
- As-is purchases with no inspection make some funders reprice or decline.
- A machine bought from a company in bankruptcy needs a clean sale order to clear liens.
- Freight on heavy iron across state lines is frequently underestimated.
How placement works
Start with the Quick App or a call. We identify the right program and institution at no charge, send a tailored secure application, and the institution underwrites the file. You review offers side by side, sign directly with the institution, and funds land. Realistic timing on equipment is 5 to 15 business days.
Manufactor Finance is an independent commercial finance broker. We are not a bank, lender, or investor, and we charge no application, origination, or closing fees. We do not help with grants, grant writing, or grant applications.
Other equipment guides
Machine tools financing questions
Yes, but the sequence matters. Get approved before the auction so funds are committed when you bid, because most auction houses demand payment within 3 to 5 days. Expect a larger down payment and a shorter term than a dealer purchase, since the funder has no inspection and no warranty to rely on.
Practically around $15,000. Below that, the fixed cost of documenting and filing the transaction makes the effective rate unattractive and a working capital advance is usually the better instrument.
Funders match the term to remaining useful life. A 1998 manual lathe with 20 good years left can still get 48 months. A machine near the end of its serviceable life gets 24 to 36, because the funder wants the note retired before the collateral is scrap.
Sometimes, and it is worth asking on every deal. Some funders include soft costs up to 10% or 15% of the equipment cost. Others fund the invoice only. On heavy iron this can be a five-figure difference in what you need in cash.
Under roughly $150,000, most programs are application-only with bank statements. Above that, expect 2 years of business tax returns, an interim P&L and balance sheet, and a personal financial statement from each guarantor.
Yes, through a sale-leaseback. A funder buys owned machines free of liens and leases them back to you, converting the value on your floor into working capital. Pricing is higher than a purchase-money loan because there is no new asset entering the shop.
Ready to keep production moving?
Start with a quick app or a phone call. We'll tell you exactly what the right program requires. At no charge.
Apply. Fund. Deliver. No obligation.
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