Manufacturing equipment finance is one of the most diverse segments of commercial lending — covering everything from basic workshop tools through to $2 million CNC machining centres and specialised food processing lines. Specialist lenders who understand manufacturing operations provide significantly better outcomes than general commercial lenders who assess manufacturing businesses against standard criteria.
What Manufacturing Equipment Can Be Financed?
- CNC machining centres and milling machines
- CNC lathes and turning centres
- Laser cutters and plasma cutters
- Press brakes and folding machines
- Guillotines and shearing machines
- Welding equipment and robotic welding cells
- Injection moulding machines
- Extrusion machinery
- Food processing lines and equipment
- Packaging machinery and wrapping systems
- Printing presses and wide-format printers
- Industrial refrigeration and coolrooms
New Technology vs Used Manufacturing Equipment
Manufacturing equipment often has long service lives, and a well-maintained machine at 10 to 15 years old can still be highly productive. Specialist lenders for manufacturing equipment are more flexible on asset age than standard commercial lenders. Imported European and Japanese manufacturing equipment often holds its value better than standard guidelines suggest — specialist assessment produces better loan terms for these assets.
Tax Benefits for Manufacturers
Under a chattel mortgage structure, manufacturing businesses may be able to claim the full GST on the purchase price immediately in their BAS, plus depreciation and interest deductions over the loan term. The instant asset write-off scheme (where eligible) may allow full deduction of the asset cost in the year of purchase — check with your accountant for current thresholds and your eligibility.
Sale and Leaseback for Manufacturers
Many manufacturing businesses have significant capital tied up in owned plant and equipment. Sale and leaseback allows these businesses to unlock that equity — selling machinery to a financier and leasing it back — while continuing to use the equipment without disruption. This is a practical way to fund new equipment, business growth or working capital without new debt.
Overdrive Funding works with Australian manufacturers across all sectors. Contact us for a free manufacturing equipment finance comparison.