Machining Finance is for fabricators of custom metal products that require working capital to purchase new equipment and fund expansion. Machine shops will often have to buy raw materials in bulk to take advantage of discounts, however, may have to wait for weeks or months until the raw materials are converted into a finished product and shipped to the end customer. Companies that need working capital to purchase raw materials or fund operating expenses can utilize Machining Finance
The most common types of machining funding are:
- Asset Based Lending
- Production Finance
- Invoice Factoring
- Spot Factoring
- Small Business Loans
The type of Machining Finance that will be appropriate for your company will depend on the availability of open credit from suppliers and the cash flow of the business. Companies that have good trading terms with suppliers and strong cash flow can benefit from Asset Based Lending or a Small Business Loan. Companies that have limited or no credit from suppliers may benefit from Production finance and Invoice Factoring.
As machine shops typically have a significant amount of capital equipment, they can often benefit from an asset based loan as it provides funding on equipment as well as receivables, inventory and real estate if applicable.
While there are several forms of Machining Finance available, each has its positives and negatives. In many cases more than one form of financing can be used to generate capital. Choosing the right working capital facility with the right lender can make all the difference.
Call us now at 855-424-2958 to discuss your machining finance options! Or fax us at (855) 450-0885.
Customized Financing Options
Asset Based Lending
Revolving lines of credit up to $20,000,000
Accounts Receivable Factoring
No minimums, up to $20,000,000
Secondary lines of credit for ABL or Factoring
Equipment & inventory facilities
Great for staffing & temp agencies