Equipment financing · manufacturing
Manufacturing Equipment Financing: CNC, Presses, Automation and Production Lines
Manufacturers get the best equipment terms of any industry in 2026 — long-life assets, strong cash flow, and a 0% SBA fee on loans up to $700,000. Here is how CNC, press, laser and automation purchases are financed, what they cost, and when SBA beats a straight equipment loan.
How Is Manufacturing Equipment Financed?
Manufacturing equipment is financed with equipment loans and leases of $25,000 to $3 million over 48 to 84 months, up to 100% of the invoice including rigging, installation and tooling, at rates of about 7% to 14% for established shops. CNC machines, presses, lasers, robotics and packaging lines are all strong collateral. For larger projects, manufacturers (NAICS 31–33) also have the best SBA deal in the market in FY2027: a 0% upfront guaranty fee on 7(a) loans of $700,000 or less and no SBA fees on 504 loans, with 10-year terms on equipment. RAN Funding places both routes.
What Manufacturing Businesses Finance
| Equipment | Typical cost | Typical term |
|---|---|---|
| CNC mill / lathe | $80,000–$500,000 | 60–84 months |
| Fiber laser / waterjet / plasma | $150,000–$700,000 | 60–84 months |
| Press brake / stamping press | $100,000–$600,000 | 60–84 months |
| Injection molding machine | $100,000–$1,000,000 | 60–84 months |
| Robotic cell / automation | $150,000–$1,500,000 | 60–84 months |
| Packaging / bottling line | $200,000–$2,000,000 | 60–84 months |
| Compressors, forklifts, material handling | $20,000–$150,000 | 36–60 months |
| Tooling, fixtures, software | $10,000–$200,000 | 24–48 months |
Rigging, installation, tooling and training can usually be rolled in up to 20–25% of the equipment cost.
Programs and Terms for Manufacturing
| Typical | |
|---|---|
| Deal size | $25,000–$3,000,000 (larger via SBA) |
| Term | 48–84 months; SBA up to 10 years |
| Down payment | 0–10% |
| Credit | 640+ standard; 600+ with strong cash flow |
| Time in business | 2+ years for bank and SBA programs; 1+ year independents |
| App-only limit | Up to $300,000 |
| Speed | 2–5 business days app-only; 1–2 weeks full-financial; SBA 30–60 days |
Specialized machines (a five-axis mill, a custom line) have thinner resale markets, so lenders lean more on the shop’s cash flow and may ask for 10% down; mainstream CNC and presses finance like trucks.
Monthly payment on a $300,000 CNC machine
Illustrative. SBA is cheaper per month and the FY2027 fee waiver removes the upfront cost for manufacturers, but takes 30–60 days.
How Lenders Look at Manufacturing Deals
- Cash flow: manufacturers are underwritten on debt service coverage more than any other equipment borrower; two years of returns above $300,000.
- The machine: brand, age, resale market; mainstream brands (Haas, Mazak, DMG Mori, Trumpf, Amada, Fanuc) price best.
- The project: what the machine adds — a quoted contract, a bottleneck removed — matters on larger tickets.
- Vendor and installation: lenders fund progress payments to the builder on long-lead machines.
- Existing debt and leases: a shop with several notes is fine if coverage holds.
Section 179 for Manufacturing Equipment in 2026
A $500,000 line placed in service in 2026 is fully expensed under Section 179 ($2,560,000 limit), worth $105,000–$185,000 in federal tax at typical rates. The 2026 Section 179 limit is $2,560,000 with 100% bonus depreciation above it; equipment must be placed in service by 31 December. See Section 179 and equipment financing.
Getting the Best Deal
- Price the SBA route on anything over $350,000 — the FY2027 fee waiver and 10-year term often beat an equipment loan for a manufacturer.
- Finance rigging, tooling and installation with the machine rather than from working capital.
- Ask for progress-payment funding on machines with 3–6-month lead times.
- Consider a sale-leaseback on paid-off equipment to fund the new purchase’s down payment or working capital.
- Order by October for a December placed-in-service date on long-lead equipment.
How RAN Funding Places Manufacturing Equipment
Manufacturing is a core industry for RAN Funding. We place equipment loans with lenders that know machine tools, and SBA 7(a) and 504 files with lenders taking advantage of the FY2027 manufacturer fee waiver, and tell you which route is cheaper for your purchase. Related: Manufacturing business loans, equipment financing requirements, equipment financing rates.
Common Questions
Should a manufacturer use SBA or an equipment loan for machinery?
For purchases over about $350,000 where you can wait 30 to 60 days, SBA usually wins in FY2027: 0% upfront fee on 7(a) loans up to $700,000, 10-year terms and lower rates. For faster or smaller purchases, an equipment loan funds in days.
Can I finance a CNC machine with installation and tooling?
Yes. Rigging, installation, tooling, software and training are typically financed with the machine up to 20% to 25% of its cost.
What term can I get on manufacturing equipment?
48 to 84 months on equipment loans; up to 10 years on SBA 7(a) loans for equipment with a matching useful life.
Does Section 179 cover manufacturing equipment?
Yes. Machinery and equipment are the core of Section 179. For 2026 the limit is $2,560,000, with 100% bonus depreciation above it.
Sources
- Equipment loan rates by industry 2026 — Crestmont Capital
- Equipment loan rates in 2026 — Equipment Financing HQ
- Section 179 deduction guide 2026 — Block Advisors
See What You Qualify For
One application, about five minutes, soft pull only. A funding specialist tells you up front whether SBA is realistic for your file — and which faster products fit if it is not.
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