Manufacturing equipment financing covers the full machine shop: CNC machining centers ($80K–$1M+), press brakes ($75K–$400K), CNC lathes ($60K–$300K), laser cutters ($200K–$1M+ for fiber lasers), EDM machines ($80K–$300K), 3D printers + additive ($25K–$500K+). Financing runs 6–12% APR over 36–84 month terms with 0–20% down at 600+ FICO. SBA 504 at ~6% blended rate beats equipment loans on $500K+ deals if you can wait 45–75 days. OEM captives (Mazak Capital, Haas Capital, Okuma America Financial, DMG Mori Finance, Trumpf Financial Services) often beat third-party rates on new equipment.
Manufacturing equipment financing is one of the most mature equipment lending categories — the equipment holds value, the revenue is contract-based, the industry has low default rates, and lenders compete hard. This guide covers what manufacturers actually pay across the major equipment categories and how to choose between equipment loan, SBA 504, and OEM captive financing. For related see Section 179 tax strategy 2026 and construction equipment financing.
Cost Ranges by Equipment Class
| Equipment | New | Useful life |
|---|---|---|
| Vertical machining center (VMC) | $80K–$250K | 15–20 yr |
| Horizontal machining center (HMC) | $200K–$600K | 15–20 yr |
| 5-axis CNC | $400K–$1M+ | 15–20 yr |
| CNC lathe (turning center) | $60K–$300K | 15–20 yr |
| Press brake (CNC) | $75K–$400K | 20–25 yr |
| Fiber laser cutter | $300K–$1M+ | 10–15 yr |
| Plasma cutter | $50K–$200K | 12–15 yr |
| EDM (wire / sinker) | $80K–$300K | 15–20 yr |
| Industrial 3D printer (metal) | $200K–$1M+ | 8–12 yr |
Major Brands & OEM Captives
- Mazak — market leader in CNC machining centers. Mazak Capital captive financing.
- Haas Automation — American-made CNCs, dominant in small-to-mid machine shops. Haas Capital.
- Okuma — Japanese, high-end CNC. Okuma America Financial.
- DMG Mori — German/Japanese partnership, premium CNC. DMG Mori Finance.
- Mitsubishi — broad equipment portfolio, EDM specialty.
- Doosan (rebranded DN Solutions) — Korean CNC, value-positioned.
- Trumpf — German market leader in press brakes and fiber lasers. Trumpf Financial Services.
- Bystronic, Amada — major press brake and laser brands.
Third-Party Lenders + SBA
- SBA 504 through Preferred Lender Banks — cheapest path on $500K+ machine purchases. Live Oak Bank, Celtic Bank, Byline Bank are active.
- SBA 7(a) if combining equipment with working capital or acquisition.
- PEAC Solutions, Wells Fargo Equipment Finance, Pawnee Leasing, Stearns Bank — specialty industrial equipment lenders.
- Currency Capital, Beacon Funding — broader equipment lenders with manufacturing focus.
- People's Capital + Leasing, North Mill Equipment Finance, Pawnee Equipment — mid-size specialty.
Section 179 Strategy for Manufacturers
Manufacturing is the textbook Section 179 use case. A profitable machine shop buying $500K of new CNC equipment in Q4 can:
- Finance with 10% down ($50K cash out at close)
- Expense the full $500K under Section 179 (subject to $1.16M limit)
- Tax savings at 25% effective rate: $125K
- Net year-one cash position: +$75K refund vs $50K cash out at close
- Plus deductible loan interest over the loan term
Manufacturers regularly time large equipment purchases for Q4 specifically for this reason. Coordinate with your CPA before signing if you're close to a tax-year boundary. See Section 179 tax strategy 2026 for the full breakdown.
Next Step
Get matched with manufacturing equipment lenders — SBA 504 Preferred Lender Banks, OEM captives, and specialty industrial lenders. See also Section 179 tax strategy 2026 and equipment lease vs loan vs cash.
A worked example: SBA 504 vs. Section 179 on a VMC
Manufacturing is the textbook Section 179 case. Take a profitable shop buying a $250,000 vertical machining center. On an SBA 504 the deal structures roughly 50% bank, 40% CDC, and 10% down — about $25,000 in equity for a long-term, low-fixed-rate purchase, the cheapest path on $500K+ buys and competitive here too. On the tax side, Section 179 and bonus depreciation can let the shop expense a large share of that $250,000 in the placed-in-service year, cutting the effective cost well below the sticker once the deduction lands. OEM captives like Mazak Capital sometimes run promotional rates on new machines worth pricing against an SBA or specialty lender; confirm the depreciation specifics with your accountant.
Frequently Asked Questions
Can you finance CNC machines and press brakes?
Yes. Machining centers, lathes, press brakes, lasers, and supporting equipment finance through OEM captives, banks, SBA 504 lenders, and specialty equipment lenders, typically over 36–84 months.
Is SBA 504 good for manufacturing equipment?
Often it is the cheapest path on larger machine purchases (roughly $500K+), with a low fixed rate and a small down payment — at the cost of a longer underwriting process than an equipment loan.
How does Section 179 help manufacturers?
Manufacturing is a classic Section 179 use case: a profitable shop can expense a large share of a machine’s cost in the placed-in-service year, lowering the effective price. Confirm the limits and eligibility with your accountant.
Should I finance through an OEM captive or a third-party lender?
Captives like Mazak Capital sometimes run promotional rates on new machines that beat third-party pricing, while SBA and specialty lenders may win on larger or used equipment. Price all three.
Frequently Asked Questions
How much does manufacturing equipment cost?
Wide range. CNC machining centers: $80K–$1M+ (entry vertical machining center $80K–$200K; 5-axis full-size $400K–$1M+). Press brakes: $75K–$400K. CNC lathes: $60K–$300K. Laser cutters: $200K–$1M+ (fiber laser most common). EDM (wire/sinker): $80K–$300K. 3D printers / additive: $25K–$500K+. Smaller machine shops finance $200K–$500K rounds; larger custom manufacturing $1M–$5M+.
What credit score is needed for manufacturing equipment financing?
600+ FICO qualifies most established machine shops and manufacturers. 680+ gets best rates. Manufacturing tends to underwrite well because: (1) equipment holds value (especially Mazak, Haas, DMG Mori, Mitsubishi brands), (2) revenue is contract-based and predictable, (3) industry has low historic default rates. New manufacturers under 2 years operating typically need 20–25% down.
Should I finance manufacturing equipment through SBA or equipment loan?
SBA 504 wins on $500K+ deals if you can wait 45–75 days — rate ~6% blended vs 8–12% on equipment loan. Equipment loan wins on smaller deals or fast close (24–48 hours). OEM captive (Mazak Capital, Haas Capital, Okuma America Financial, DMG Mori Finance) often beats third-party on new equipment, especially with promotional 0% or 1.99% rates.
Can I finance used manufacturing equipment?
Yes — manufacturing equipment holds value well, so lenders fund used equipment up to 10–15 years old at similar rates to new with a 12-month warranty from a certified dealer. Auction purchases (Heritage Global Partners, MachineTools.com auction, Liquidity Services) typically require 20% down. Inspection report + maintenance records matter on used equipment — condition affects approval more than year-of-manufacture.
How do manufacturers use Section 179 plus bonus depreciation?
Aggressively — manufacturing equipment is a textbook Section 179 use case. $1.16M Section 179 expensing in year one plus 60% bonus depreciation (2026) on remainder means a $500K equipment purchase can be fully expensed in year one. For profitable manufacturers, this is one of the highest-ROI tax-and-finance combinations. See Section 179 tax strategy 2026 for the full breakdown.