Manufacturing equipment financing approves at 600+ FICO, 6+ months in business, and $15K+ monthly revenue. Rates run 8-15% APR with 0-20% down; terms 5-7 years on new, 3-5 on used. Strong-brand CNC (Haas, Mazak, DMG Mori, Okuma), press brakes (Amada, LVD, Trumpf), and industrial robots (Fanuc, ABB, KUKA) finance fastest because resale markets are deep. Soft costs (install, tooling, software, training) typically roll into the financing.
Manufacturing equipment financing is asset-backed lending for production iron with established secondary markets — CNC machines, press brakes, injection molding, lathes, mills, industrial robots, and the soft costs that come with them. Job shops, contract manufacturers, OEMs, and fabrication shops all finance through the same channel. For broader product context see equipment financing; for industry context see manufacturing business financing.
What Manufacturing Equipment Finances
- CNC machining centers — vertical, horizontal, 5-axis. $50K-$1M+. Haas, Mazak, DMG Mori, Okuma, Doosan finance fastest.
- Lathes & turning centers — manual, CNC, multi-axis. $30K-$500K.
- Press brakes — hydraulic, electric, hybrid. Amada, LVD, Trumpf, Bystronic. $50K-$300K.
- Lasers — fiber, CO2 cutting. $150K-$1M+. Strong resale on fiber especially.
- Injection molding — clamping force range $30K-$800K depending on tonnage.
- Industrial robots & cobots — Fanuc, ABB, KUKA, Universal Robots. $25K-$200K per unit.
- Mills, grinders, EDM, waterjet — all standard machine-tool categories.
- Materials-handling — conveyors, palletizers, AGVs/AMRs.
- Inspection & metrology — CMMs, vision systems, surface scanners.
Rates and Terms
| Credit Tier | APR | Down | Term |
|---|---|---|---|
| A (720+) | 7-9% | 0-10% | 5-7 years |
| B (660-719) | 9-12% | 5-15% | 5-7 years |
| C (600-659) | 12-16% | 10-20% | 3-5 years |
Soft Costs Matter More Here
Production equipment is rarely just the machine. A $300K CNC machining center often comes with $30K-$50K in installation, $20K-$40K in tooling, $5K-$15K in software licenses (CAM, MES), and $5K-$10K in training. Lenders typically allow 10-25% of the equipment value in soft costs to be financed alongside the asset, which is why a clean vendor invoice that itemizes soft costs is often the difference between approving the deal you actually need and approving a partial deal that leaves the shop short on cash.
Always ask the dealer to include soft costs on the invoice rather than billing them separately. Once the loan closes, financing soft costs separately is harder — they show up as unsecured working capital instead of asset-secured debt.
Job Shops, Contract Manufacturers, and Bumpy Revenue
Manufacturing revenue is rarely flat. Job shops have project-driven cash flow that spikes when a big PO ships and dips between programs. Contract manufacturers tied to a few customers see revenue patterns that mirror their customers’ demand. Lenders know this; the underwriting accepts bumpiness as long as the file is coherent.
If your bank statements show a big swing, write a one-page note explaining: top 3 customers as a % of revenue, pipeline of next 90 days, and any large invoices outstanding. Underwriters score that context as risk reduction; without it they price for worst case.
Manufacturing Equipment Financing vs SBA 7(a)
SBA 7(a) loans are popular for manufacturing because the 10-year term meaningfully lowers monthly payment on a $300K-$1M machine versus a 5-7 year asset-based term. The trade is speed and friction: SBA takes 4-8 weeks, asks for 3 years of tax returns and a debt schedule, and requires 660+ FICO and 2+ years in business. If a customer needs a machine on the floor in 30 days, asset-based wins. If the buy is planned 3-6 months out and rate matters more than speed, SBA is often cheaper. See equipment financing vs SBA loan for the full comparison.
Next Step
If you have a vendor quote in hand — or even a serious quote in progress — get matched for manufacturing equipment financing. One application, multiple specialty lenders, terms back in 24-72 hours.
Frequently Asked Questions
How do you finance manufacturing equipment?
Through equipment loans and leases, OEM captive financing, and SBA 504 for larger purchases. The equipment secures the loan, terms typically run 36–84 months, and Section 179 often applies.
Are soft costs included in manufacturing equipment financing?
Often they can be. Installation, rigging, tooling, and freight can be significant on a machine, and some lenders bundle them into the loan — confirm whether your financing covers the turnkey install or the equipment only.
Can a job shop with bumpy revenue finance equipment?
Yes, though uneven revenue invites closer scrutiny. A clean order backlog or contract manufacturing agreements that show committed work strengthen the file, and the equipment itself anchors the collateral.
Is an equipment loan or SBA 7(a) better for manufacturing?
An equipment loan funds fast and is best for a single machine; an SBA 7(a) or 504 suits larger or mixed-use needs at a lower long-term rate, at the cost of a longer process.
Frequently Asked Questions
What credit score do you need for manufacturing equipment?
Most lenders accept 600+ FICO for production equipment. 720+ unlocks the best rates and terms; 550-599 is possible with specialty lenders and larger down payment.
How long are manufacturing equipment loan terms?
5-7 years for new CNC and major production equipment; 3-5 for used. Tied to useful life of the asset so the loan does not outlast resale value.
Can I finance used CNC machines?
Yes. Used CNC up to 7-10 years old finances at standard terms; older typically needs an appraisal and 3-year max. Strong-brand machines (Haas, Mazak, DMG Mori, Okuma) finance more easily than off-brand.
Does soft cost financing apply to manufacturing equipment?
Yes. Installation, freight, training, software, and tooling can typically be rolled into the financing up to 10-25% of equipment cost. This matters more for production equipment than for vehicles because installation costs are often substantial.
Can a job shop with bumpy revenue still finance?
Yes. Lenders look at deposit consistency more than peak revenue, and bumpy job-shop revenue is the norm in this segment. A one-page note explaining your customer mix and any large recent invoices helps underwriters read the file.