Manufacturing equipment loans for CNC, robotics, tooling up to $5M+. Asset-based lending (ABL) revolvers against inventory (50-65% advance) and AR (80-85% advance) — the working-capital backbone for established manufacturers. SBA 7(a) for acquisitions and expansion up to $5M. SBA 504 for owner-occupied plants (90% LTV). Export financing via SBA Export Express, SBA Export Working Capital Program, and EXIM Bank. Specialty manufacturing equipment lenders (Stearns Bank, ENGS, BMO) and specialty ABL lenders (Wells Fargo Capital Finance, BoA Business Capital, PNC Business Credit) outperform general lenders for this vertical.
Manufacturers have one of the deepest specialty financing markets in U.S. SMB because the asset classes (machine tools, robotics, tooling), working-capital cycles (raw material → WIP → finished → AR), and long-term capital needs (real estate, expansions) are all well-understood by specialty lenders. This guide covers the products, the lenders that actually fit, and how to stack financing efficiently. For broader context see equipment financing and SBA loans.
Financing Products by Need
| Need | Product | Range |
|---|---|---|
| Machine tools, CNC, robotics | Specialty equipment loan | $50K-$5M+ |
| Tooling, dies, fixtures | Equipment loan or ABL | $25K-$1M |
| Inventory and raw materials | ABL revolver or line of credit | $500K-$50M |
| AR financing | ABL or factoring | $500K-$50M |
| Plant acquisition or expansion | SBA 7(a) or 504 | $500K-$5M (7a) / $500K-$15M+ (504) |
| Owner-occupied plant | SBA 504 | $500K-$15M+ |
| Export sales | SBA Export Express / EXIM | $50K-$5M |
| Company acquisition | SBA 7(a) | $200K-$5M |
Asset-Based Lending Deep Dive
For manufacturers above ~$5M revenue, asset-based lending (ABL) is the working-capital workhorse. ABL revolvers advance against eligible collateral:
- Eligible AR: 80-85% advance, typically excludes invoices over 90 days, intercompany, and customer concentrations above 25%
- Eligible raw materials: 50-60% advance against cost
- Eligible WIP: 0-30% advance (lenders are conservative because WIP can't be liquidated)
- Eligible finished goods: 50-65% advance against cost
- Eligible equipment: 70-80% advance against orderly liquidation value (OLV)
Pricing: prime + 1.5-4% (currently ~9-12%) plus a 0.25-0.50% unused-line fee. Costs more than a bank line but scales with the working capital base, which is the right shape for manufacturers.
Specialty ABL lenders: Wells Fargo Capital Finance, Bank of America Business Capital, PNC Business Credit, Cit Group, Crestmark, Encina Business Credit. Most regional banks have an ABL group too.
Equipment Financing for Manufacturers
Manufacturing equipment is one of the deepest specialty finance markets in U.S. SMB. Asset categories include:
- Machine tools (CNC mills, lathes, grinders, EDMs) — deep aftermarket, financeable to 7-10 years
- Robotics and automation (Fanuc, ABB, KUKA, Yaskawa cells) — faster depreciation, 3-5 year terms typical
- Stamping and forming (presses, brakes, lasers) — very deep used market, financeable to 10 years
- Injection molding and tooling — molds finance through specialty mold-tooling lenders
- Material handling (forklifts, AGVs, conveyors) — specialty MHE lenders dominate
OEM captives (Mazak Capital, Haas Factory Outlet, Okuma, DMG Mori financing) often offer competitive deals on their own brands. Independents (Stearns Bank, ENGS Commercial Finance, BMO Equipment Finance, Wells Fargo Equipment Finance) cover everything.
SBA Programs for Manufacturers
Manufacturers are heavily favored by SBA programs because they're capital-intensive and create jobs. Two products dominate:
- SBA 7(a): up to $5M for acquisitions, expansion, and equipment. 10-year amort on equipment, 25-year on real estate. Prime + 2.25-2.75%.
- SBA 504: up to $15M+ effective for owner-occupied plant. 90% LTV. 25-year amortization. Fixed CDC rate (~5.5-7%) on the 40% CDC portion. Best deal in U.S. SMB for owner-occupied real estate.
Manufacturer-active SBA lenders: Live Oak Bank (deep manufacturing book), Newtek, Wells Fargo SBA, Huntington National, U.S. Bank SBA. CDCs (for 504): TMC Financing, Florida First Capital, regional CDCs everywhere.
Export Financing
U.S. manufacturers selling internationally have specialized financing options:
- SBA Export Express: up to $500K, fast turn, 90% guarantee on lines and term loans for export-related uses
- SBA Export Working Capital Program: up to $5M, 90% guarantee, single-transaction or revolving
- EXIM Bank Working Capital Guarantee: up to $25M+ on a per-deal basis, 90% guarantee on export-purpose lines
- EXIM Export Credit Insurance: insures the foreign buyer's payment risk so the manufacturer can borrow against insured AR
For first-time exporters, the SBA Export Working Capital Program is the typical entry point.
Specialty Manufacturer Lenders
ABL
- Wells Fargo Capital Finance, Bank of America Business Capital, PNC Business Credit, Cit Group, Crestmark, Encina Business Credit
Equipment
- Stearns Bank, ENGS Commercial Finance, BMO Equipment Finance, Wells Fargo Equipment Finance, U.S. Bank Equipment Finance (independents)
- Mazak Capital, Haas Factory Outlet financing, Okuma, DMG Mori, Fanuc America financing (OEM captives)
SBA
- Live Oak Bank, Newtek, Wells Fargo SBA, Huntington National, U.S. Bank SBA
Next Step
Whatever your manufacturing financing need — equipment, working capital, real estate, export, acquisition — specialty lenders dramatically outperform general lenders. Get matched with a manufacturing lender.