A Manufacturing Company's Journey from Lease to Ownership

When manufacturers need high-cost machinery but want to avoid massive upfront costs, leasing becomes a strategic growth tool. This real-life case study shows how one company used equipment leasing to acquire mission-critical machines, scale production, and transition to full equipment ownership—on their own terms.

✅ Featured Snippet Answer:

Can manufacturers lease equipment and eventually own it?
Yes, lease-to-own agreements allow manufacturers to finance equipment affordably and gain full ownership after the lease term.

Meet the Company: IronForm Precision

Industry: Metal fabrication and custom parts manufacturing
Location: Grand Rapids, MI
Challenge: Needed CNC machines and laser cutters to fulfill new contracts
Revenue (Year 1): $1.2M
Capital Available: $60,000
Purchase Cost (New Equipment): $410,000

IronForm had just landed two large industrial supply clients but didn’t have the automation and precision tools to meet volume and timing demands.

The Problem: High Demand, Limited Equipment

IronForm needed:

• 2 CNC milling machines

• A high-powered fiber laser cutter

• Industrial dust collection and power upgrades

• Quick delivery and installation

Outright purchase would wipe out their reserves and delay their production start by months.

The Solution: Lease-to-Own Agreement

IronForm partnered with an industrial equipment finance company and secured a 60-month lease-to-own plan:

• Monthly payment: $7,200

• Buyout price at term end: $1

• Maintenance contract: Included for 36 months

• Upfront payment: First month + documentation fee only

Benefits of Their Lease Strategy:

✅ Preserved working capital for raw materials and payroll
✅ Started production in 4 weeks
✅ Locked in predictable fixed payments
✅ Qualified for Section 179 tax deduction
✅ Built business credit while operating at scale

Related: Manufacturing Equipment Financing: Keeping Your Production Line Moving

Outcome: Ownership + Scalable Growth

Over the 5-year lease term:

• Revenue grew from $1.2M to $4.8M

• Machines paid for themselves in Year 2

• The company added a second shift and doubled staff

• In Month 61, IronForm officially owned the equipment debt-free

By the time ownership transferred, the machines were still in excellent condition—and had already helped IronForm secure 3 additional long-term contracts.

Quote from the Owner

“The lease-to-own route gave us speed and scale without sacrificing financial control. We’re now fully equipped and fully in charge.”
— Mike Dawson, Founder & CEO, IronForm Precision

Summary: Lease-to-Own Success in Manufacturing

1. Leased $410K of equipment with minimal upfront cost

2. Avoided debt and equity dilution

3. Reached full ownership in 5 years

4. Scaled revenue 4X

5. Strengthened long-term competitive edge

Final Thoughts: Own the Tools That Built Your Growth

Leasing doesn’t mean you’ll never own—it can be the bridge to strategic ownership, allowing you to scale first and buy later. For manufacturers, lease-to-own delivers power, flexibility, and long-term ROI.

Take Action: Build Now, Own Later

Thinking of expanding your production line?
Explore industrial equipment lease-to-own options that put ownership on the horizon—without putting pressure on your budget today.