Case Overview
In a strategic move to enhance efficiency and reduce costs, one of our manufacturing clients aimed to purchase a $616,000 CNC machine. This investment was intended to bring their metal fabrication process in-house, a significant shift from relying on external vendors and was expected to yield considerable long-term savings.
Challenge and Innovative Financing Solution
The acquisition of the CNC machine required a 15% upfront deposit, a financial challenge our client was initially unable to meet. To bridge this gap, our finance team crafted an innovative approach:
- Financing Strategy: We facilitated a $100,000 line of credit for the client, specifically to cover the deposit. This strategy combined cash flow lending with asset-based financing, a dual approach we frequently use to support our commercial clients’ significant capital acquisitions.
Outcome and Terms
- Rapid Execution: We secured the necessary financing within a 5-day period.
- Financing Details: The client obtained a $523,600 secured loan for the machine, in addition to the line of credit.
- Loan Duration: The financing was structured with a term of 60 months.
Our tailored financial solutions enabled the client not only to meet the initial deposit requirement but also to successfully integrate the CNC machine into their operations. This acquisition is expected to enhance production capacity and reduce operational costs.
