Reinvesting in your business can improve your position in the extremely competitive manufacturing industry. While some smaller shops can manage their business with entry level equipment, we are seeing a huge push by companies to automate their operations to improve efficiency, diversify their business and bring in new customers.
GET A COMPETITIVE ADVANTAGE BY INCORPORATING INDUSTRIAL AUTOMATION
Robotic technology, bar feeders, conveyors and other types of tooling are transforming the industry by offering a means to streamline operations, enhance productivity and reduce costs. However, some business owners receive pushback from their bank when applying for a loan for automation, simply because banks don’t understand the equipment.
Oftentimes lenders are unable to recognize the value in equipment or the advantages of automation in manufacturing. Their approval process is strictly based on a customer’s credit history, personal financials and tax status, which makes investing in automation extremely difficult without a substantial cash down payment.
So, as a manufacturer, how do you get the funding you need to incorporate industrial automation into your shop?
Put Your Existing Equipment to Work
Of course, your equipment is working every day but did you realize that existing equipment can be used to secure new loans and working capital?
- If you own equipment that is free and clear of liens, you can use that equipment to secure a working capital loan. You can then use this cash to purchase all types of automation, including robots, process integration and material handling solutions.
- If you are currently financing multiple pieces of equipment with various lenders, or just one machine that has equity, you may be able to refinance this equipment and tap your equity to generate working capital.
Creative Finance Solutions for Manufacturing Automation
At Manufacturers Capital, we take pride in providing our customers with creative alternatives to fund their business projects. We are not a bank, so we don’t think like a bank. Our team specializes in the manufacturing industry and recognizes the importance of industrial automation to boost productivity and stimulate business.
Here is just one of many examples of our industry knowledge:
We recently helped a business owner in Florida generate enough cash to automate his shop. This customer was looking to purchase a large $500,000 bridge mill with work holding tombstones and plating equipment. While he was able to get financing for the machine, he was having trouble financing the additional tooling to help automate his processes. After being told no by his bank, Manufacturers Capital was able to work with him to develop a creative equipment financing solution.
We listened to his objectives and found that he had multiple machines financed under various lenders. We refinanced 13 of those machines, paying off 9, and used the equity built over time as collateral for a working capital loan. With this extra cash, he was able to purchase automatic tooling for his new machine, increasing productivity and lowering his monthly payments by $2,000.
If you need funding to automate your shop, contact us. Manufacturers Capital can help design a creative funding solution for your company today!
