Financing Built for Manufacturers
Liberty Capital Group has helped manufacturers fund equipment, materials and growth since 2004. Manufacturing business loans and equipment financing let you add capacity, take on bigger contracts and keep cash in the business instead of tying it up in machinery.
What Manufacturers Need Financing For
Manufacturing is capital-heavy. A single CNC machine or injection molder can cost more than a year of profit, raw materials have to be bought before a customer pays, and large orders often come with 30 to 90 day payment terms. The right financing matches each of those needs to the right product, so you are not using expensive short-term money for long-term equipment, or draining cash reserves you need for payroll.
Most manufacturers use a mix: equipment financing for machines, a line of credit or working capital for materials and payroll, and factoring when customers pay slowly. We help you put that mix together from one application.
10 Types of Manufacturing Business Loans
Equipment financing and leasing
Finance CNC machines, presses, injection molders, robotics, packaging lines and forklifts, with the equipment serving as collateral. Terms up to 5 years, most with a $1 buyout. Equipment financing · Equipment leasing
Equipment finance agreement (EFA)
A simple loan-style agreement: you own the equipment from day one, make fixed payments and have no buyout at the end. Popular for manufacturers who want ownership and a clean balance sheet.
Business line of credit
Draw funds for raw materials, payroll or a large order, repay, and draw again. You pay only on what you use. Lines of credit
Working capital loans
Lump-sum funding to cover the gap between buying materials and getting paid, or to take on a large contract. Revenue-based working capital
Term loans
Fixed amount, fixed payments over 1 to 5 years for expansion, facility improvements or a new product line.
SBA loans
Government-backed loans with long terms and competitive rates for well-qualified manufacturers. They take the longest to fund but can offer the lowest payments.
Invoice factoring
Turn unpaid invoices into cash within days instead of waiting 30 to 90 days for distributors and OEM customers to pay.
Inventory and purchase order financing
Fund the materials or finished goods needed to fill a large order before your customer pays.
Sale-leaseback
Unlock cash from equipment you already own: sell it to a funder and lease it back, keeping it on your floor. Sale-leaseback
Commercial real estate
Purchase or refinance your plant, warehouse or industrial space. Commercial loans
Manufacturing Equipment You Can Finance
New and used equipment qualify, and many programs also cover soft costs such as freight, rigging, installation, tooling and training.
- CNC machines, lathes and mills (CNC machine financing)
- Injection molding and extrusion machines
- Metal fabrication: press brakes, lasers, plasma and waterjet cutters (metallurgical equipment)
- Packaging, labeling and filling lines
- Robotics and automation cells
- 3D printers and additive manufacturing
- Forklifts, conveyors and material handling
- Food and beverage processing equipment
- Quality control, testing and inspection equipment
- Compressors, generators and plant utilities
Leasing vs. Buying Manufacturing Equipment
For most manufacturers, leasing or an equipment finance agreement beats paying cash. Here is why:
- Cash flow management. Leasing needs a low capital outlay compared to an outright purchase, so your working capital stays free for materials, payroll and new contracts.
- Inflation buster. Equipment prices keep climbing. A lease locks in today's price with a fixed payment, and you pay it back with tomorrow's dollars.
- Low, manageable payments. Fixed monthly payments make job costing and budgeting predictable, and can be structured around seasonal or contract-based revenue.
- Terms up to 5 years, most with a $1 buyout. At the end of the term you own the machine for a dollar, with no balloon payment.
- Section 179 and 100% bonus depreciation. A $1 buyout lease is generally treated as a purchase for tax purposes, so qualifying equipment may be eligible for the Section 179 deduction (up to $2.56 million for 2026) or 100% bonus depreciation in the year it is placed in service. Confirm with your CPA.
- Conserve cash. Keep reserves and bank lines open for opportunities and emergencies instead of tying them up in equipment.
Paying cash can still make sense for a profitable shop with strong reserves and equipment it will run for a decade or more. Compare the total cost of each option before you decide.
Loan vs. Lease vs. Equipment Finance Agreement
| $1 buyout lease | Equipment finance agreement | Term loan | |
|---|---|---|---|
| Ownership | At end of term for $1 | From day one | From day one |
| Down payment | Often first and last payment | Often 0–10% | Varies |
| Collateral | The equipment | The equipment | Business assets, sometimes a lien |
| Best for | Keeping cash, tax planning | Ownership with fixed payments | Expansion, mixed uses |
How to Qualify for a Manufacturing Business Loan
Every program is different, but lenders generally look at:
- Time in business – established manufacturers get the best terms; post-revenue startups can qualify for equipment financing and working capital.
- Revenue and cash flow – steady monthly deposits and the ability to carry the new payment.
- Credit – personal and business credit; equipment financing is more flexible because the machine secures the deal.
- The equipment – an invoice or quote showing make, model, year and price.
- Existing debt – current loans, leases and any merchant cash advances.
For smaller equipment deals, many programs are application-only. Larger requests typically need 3 to 6 months of bank statements and, for the biggest deals, tax returns and financial statements.
How to Apply
- Complete the 3-minute application. Soft credit pull, no application fee.
- Talk with a loan advisor. We review your goals and match you with the right programs.
- Compare offers. We lay out payments and total cost side by side.
- Get funded. Sign electronically; the vendor or your account is paid, often within days.
Why Manufacturers Choose Liberty Capital Group
Since 2004 we have placed commercial financing for manufacturers, contractors and industrial businesses. One application is shopped across multiple equipment lessors, banks and working capital funders, so you are not bank-hopping or taking the first offer. We explain the total cost in plain terms, never charge an application fee, and do not sell your information. Have questions first? Read our business financing FAQ.
Manufacturing Business Loans: FAQ
What credit score do I need for a manufacturing business loan?
It depends on the program. Equipment financing for manufacturers can work with fair credit when you have a down payment and steady revenue, because the machine secures the deal. Unsecured working capital and lines of credit lean more on revenue and time in business. SBA loans need the strongest credit and financials.
Can I finance used manufacturing equipment?
Yes. Used CNC machines, presses, injection molders and packaging lines are financeable. Lenders look at the age, condition and resale value of the equipment, so newer used machines usually get longer terms.
How fast can a manufacturer get funded?
Application-only equipment financing and working capital can fund in 1 to 3 business days. Larger equipment deals with full financials take 1 to 2 weeks, and SBA loans take several weeks.
Can I include installation, shipping and tooling in the financing?
Usually, yes. Many equipment programs cover soft costs such as freight, rigging, installation, tooling and training, so you don't pay them out of pocket.
Does Liberty Capital Group finance startup manufacturers?
Post-revenue startups can qualify for equipment financing and working capital, usually with a down payment and good personal credit. Pre-revenue startups have fewer options and generally need stronger credit, collateral or an SBA program.
Is leasing or buying better for manufacturing equipment?
For most manufacturers, a $1 buyout lease or equipment finance agreement wins: low capital outlay, fixed payments, ownership at the end and possible Section 179 or 100% bonus depreciation. Paying cash can make sense for profitable shops with strong reserves and equipment they will run for a decade or more.
Will checking my options hurt my credit?
No. Liberty Capital Group uses a soft credit pull for your initial quote. If a specific program needs a hard inquiry at funding, we tell you first.
Request Your Manufacturing Financing Quote
Liberty Capital Group, Inc. · Established 2004 · NMLS #2009539 · California DFPI #60-DBO49692. Approval and terms depend on the program and lender. Consult your CPA about the tax treatment of equipment purchases and leases.