Machinery finance · Manufacturing
Machinery finance for manufacturing
Manufacturing finance is capital equipment lending combined with working capital for raw materials, covering CNC machines, presses and packaging lines as well as the gap between buying stock and being paid for finished goods.
How a machinery finance works for manufacturing
A CNC machining centre or fibre laser is a five-to-ten-year asset and should be financed like one. Machinery finance funds the purchase against the machine itself, and specialist lenders will handle the awkward parts of an imported capital purchase: a deposit to the manufacturer, a progress payment before shipping, and final settlement once the machine is installed and commissioned in your factory. Repayments starting at commissioning rather than at order matter enormously when lead times run six months. Send the proforma invoice and shipping schedule with the application.
The cash-flow pattern we plan around
Cash out for raw materials, then weeks of work in progress, then 30–60 day terms on finished goods — a cycle that lengthens as the business grows.
What manufacturing typically fund
- CNC machines, lasers and press equipment
- Packaging and materials handling lines
- Raw materials and imported componentry
- Forklifts and factory logistics
- Factory fit-out, power upgrades and compliance works
Machinery finance for manufacturing: the numbers
| Typical amounts | $20,000 – $3,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 7.2% – 16.5% p.a. |
| Repayments | Monthly |
| Speed | 24–72 hours for low-doc, up to a week for full-doc or private sales |
| Documents manufacturing usually need | ABN, GST registration and two years of financials · Supplier quote or proforma invoice for the machine · Debtor ledger and aged receivables report |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Manufacturing equipment finance
Manufacturing equipment finance is secured lending for production machinery such as CNC machining centres, laser cutters and packaging lines, often structured to fund supplier progress payments and to commence repayments on commissioning.
Working capital cycle
The working capital cycle is the time between paying for raw materials and receiving payment for the finished goods made from them, during which the business funds the value of that inventory itself.
What is machinery finance?
Machinery finance is asset-backed business lending for plant and production equipment such as excavators, loaders, telehandlers, CNC machines and packaging lines. The machine secures the loan, usually under a chattel mortgage or finance lease.
Can you finance used machinery?
Yes. Most specialist lenders fund used plant, including auction and private-sale purchases. Machine hours, service history and a clear PPSR search matter more than age alone, though many lenders cap the asset’s age at the end of the term.
How do hours affect machinery finance?
Hours are the primary measure of a machine’s remaining life and resale value. High-hour machines attract shorter terms, larger deposits and higher rates because the security depreciates faster and sells for less.