Industry
Financing for precision machining & machine shops
Precision machine shops buy bar stock, tooling, and inserts, run jobs for OEM customers who stretch to net-60, and carry equipment that's expensive to replace. Factoring and equipment loans keep the spindles turning through payment gaps.
You're running CNC mills, lathes, Swiss turns, and grinders against OEM and tier-supplier POs. You buy bar stock, tooling, and inserts on your dime, run the parts, and ship to customers — aerospace, medical, automotive, defense — who pay 45, 60, sometimes 90 days later.
It's a job-shop cash cycle: every new PO is a material buy and a tooling spend before the first chip flies, and your biggest customers are often the slowest payers. One aerospace or medical prime can dominate your book for a quarter.
Our team looks for a funding partner that fits machine shops. Common options include factoring against OEM receivables, PO financing on material and tooling buys for big jobs, and equipment loans for the next mill, lathe, grinder, or 5-axis machining center.
Want a written answer specific to your precision machining & machine shops operation? Email our team — no pressure, no obligation, no fees to you.
Cash-flow challenges we solve
The specific spots where precision machining & machine shops operators run out of runway — and where the right funding structure keeps you moving
- OEM and tier-supplier customers on net-30 to net-90 terms
- Bar stock, tooling, and insert pre-buys for every new job
- Customer concentration in one aerospace, medical, or automotive prime
- Long-cycle jobs with milestone billing and retainage
- Equipment capex for mills, lathes, grinders, and machining centers
How funding works for precision machining & machine shops
A typical referral path — tailored to how your cash cycle actually runs, not a generic small-business template
Job or PO confirmed
An OEM or tier supplier places a real work order. That's the trigger.
PO financing funds material and tooling
Bar stock, castings, forgings, tooling, and inserts get paid on supplier terms so the job starts on schedule
Ship and factor the invoice
Once parts ship and you invoice, factoring advances 85–92% within days instead of waiting 30–90 days
Equipment financed separately
Mills, lathes, grinders, 5-axis centers, and tooling go on 24–72 month equipment loans
Which program fits precision machining & machine shops best?
A side-by-side view of the programs manufacturers in this space actually use — ranked by how often they're the right fit for precision machining & machine shops operators. Your specific match depends on buyers, margins, and what you're trying to solve.
- Best for
- Shops with creditworthy B2B / gov buyers on net-30/60/90
- Speed
- 3–10 days
- Typical size
- $25K–$10M+ per month
- Watch for
- Your customers' credit matters more than yours
Converts open invoices into cash fast: a natural fit for Precision Machining & Machine Shops shops selling to slow-paying commercial or government buyers
See Invoice Factoring details- Best for
- Funded POs from creditworthy buyers when you can't self-fund materials
- Speed
- 2–4 weeks
- Typical size
- $100K–$25M per PO
- Watch for
- Gross margins usually need to clear ~20–25% to pencil
Funds materials and production on real, awarded POs so Precision Machining & Machine Shops manufacturers can accept orders bigger than their cash on hand
See Purchase Order Financing details- Best for
- Adding capacity: CNC, robotics, lines, tooling, vehicles
- Speed
- 5–15 business days
- Typical size
- $25K–$5M per asset
- Watch for
- Rate/term depend on asset age, condition, and useful life
Adds machinery, tooling, or vehicles for Precision Machining & Machine Shops operations without draining working capital
See Equipment Financing details- Best for
- Established manufacturers with A/R, inventory, and equipment collateral
- Speed
- 3–8 weeks
- Typical size
- $1M–$50M+ revolver
- Watch for
- Requires monthly reporting and borrowing-base discipline
Sometimes used. A scalable revolver against A/R, inventory, and equipment: usually a fit for larger Precision Machining & Machine Shops manufacturers with clean books.
See Asset-Based Lending (ABL) details- Best for
- Short-term gaps: payroll, materials, a specific catch-up
- Speed
- 2–7 business days
- Typical size
- $25K–$5M
- Watch for
- Shorter terms, higher effective cost: use with a clear payoff plan
Sometimes used. Bridges short gaps in Precision Machining & Machine Shops operations (payroll, a materials buy, or a specific catch-up) without a long approval process.
See Working Capital details- Best for
- Real estate, acquisitions, refis, long-horizon growth capital
- Speed
- 45–120 days
- Typical size
- Up to $5M
- Watch for
- Longest timeline and most documentation of any program
Sometimes used. Long-horizon capital for Precision Machining & Machine Shops real estate, acquisitions, refis, or expansion: the slowest path, but usually the cheapest.
See SBA & Term Loans detailsSpeeds and sizes are typical ranges, not offers. Actual terms depend on underwriting and the funding partner. We are an independent referral service, not a bank, lender, or investor. Nothing here is a commitment to fund.
Precision Machining & Machine Shops financing — FAQs
Yes. Advance rates depend on your customer's credit, not your shop size. A 10-spindle job shop invoicing a tier supplier or prime typically factors as cleanly as a large machining center.
Yes. Primes on net-60 to net-90 are common factoring customers — the factor underwrites the prime's credit and structures the advance around their payment cycle.
Yes. PO financing pays your material and tooling suppliers directly against a confirmed work order so you can run the job without draining cash.
Yes. New and used CNC equipment finance routinely with 24–72 month terms and proper appraisal. Haas, Mazak, Okuma, DMG Mori, and Brother are all bread-and-butter.
Factoring setup runs 7–14 business days, then approved invoices advance within 24–48 hours. Used CNC and Swiss equipment financing typically closes in 5–15 business days; PO financing on a large mill or material order takes 2–4 weeks.
No. Aerospace, automotive, and medical OEMs see factoring notices all the time — it's routine paperwork. A good factor handles the notice so nothing feels off to your buyer or AP contact.
Concentration in a few creditworthy OEMs is normal for machine shops and is workable. The structure we match you to is built to live with that concentration rather than penalize you for landing a big contract.
Precision Machining & Machine Shops sub-niches we serve
Each sub-niche has its own documentation pattern, disclaimers, and FAQs tailored to how underwriters actually look at the file
Sub-niche
CNC Job Shops
Factoring, PO financing, and equipment loans for CNC job shops and contract machining manufacturers
Sub-niche
Tool & Die
Working capital and equipment loans for tool, die, mold, and fixture makers
Sub-niche
Swiss Turn & Screw Machine
Factoring and equipment loans for Swiss turn and screw machine shops producing precision parts
Sub-niche
EDM & Micromachining
Equipment financing, working capital, and invoice factoring for EDM shops and micromachining operations serving aerospace and medical device customers
Sub-niche
Grinding & Heat Treating Services
Equipment financing, invoice factoring, and working capital for precision grinding shops and commercial heat treating operations
Related industries we serve
Metal Fabrication
Funding for job shops, structural fab, precision machining, and CNC operations
Aerospace & Defense Manufacturing
Funding for tier-1/2/3 aerospace suppliers, machine shops, and defense contractors
Medical Device Manufacturing
Capital for FDA-registered device makers, contract manufacturers, and component suppliers
Precision Machining & Machine Shops hubs we serve
Jump into a local page for buyer context, eligibility, and program mechanics for precision machining & machine shops shops
Keep reading
Hub resources that explain how state funding guides works for US manufacturers
Related guides
Comparisons
Funding Requirements Checklist for US manufacturers
See exactly what underwriters actually look at for factoring, PO financing, equipment, working capital, ABL, and SBA before you fill out a single application
- What documents you need for each program
- Typical time-to-fund by program
- Common disqualifiers worth knowing up front
- How Manufactor Finance is compensated — $0 fees to you
Questions before you apply?
Send a request. Our team reviews it, and if a funding partner thinks they can help, a specialist from that partner contacts you. No pressure and no obligation.
Ready to keep production moving?
Start with a quick inquiry 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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