Metalworking and fabrication businesses rely on specialized equipment—lathes, milling machines, press brakes, welding systems, and CNC machinery—to stay competitive. But these tools can cost tens or even hundreds of thousands of dollars. Funding options for metalworking and fabrication equipment allow shops to expand capabilities without draining their cash reserves.
You can fund metalworking and fabrication equipment through equipment loans, leasing, SBA programs, vendor financing, or industrial finance companies.
High upfront costs make buying outright difficult
Rapid tech advances mean equipment can become outdated quickly
Preserve working capital for payroll, materials, and operations
Scale production without waiting to save up cash
Related: The Financial Advantages of Leasing vs. Purchasing Equipment
Press brakes
Shears
Plate rolling machines
CNC milling machines
CNC lathes
Laser and plasma cutters
MIG, TIG, and robotic welders
Fume extraction systems
Material handling systems
Safety gear and inspection tools
Competitive rates for strong credit
You own the equipment once the loan is paid off
Often allows bundling of installation and training costs
Lower initial costs than purchasing
Operational leases for short-term needs
Lease-to-own options for long-term assets
SBA 7(a) and 504 programs ideal for large purchases
Long repayment terms and lower interest rates
Requires more documentation and time to process
Offered by equipment dealers or manufacturers
Can include promotional rates or bundled services
Fast approval process
Specialize in manufacturing and fabrication industries
Offer seasonal or revenue-based payment plans
Learn more: U.S. Small Business Administration – Loan Programs ↗️
| Equipment | Cost Range | Loan Payment (5 yrs @ 7%) |
|---|---|---|
| CNC plasma cutter | $30,000–$100,000 | ~$575–$1,915/month |
| Press brake | $50,000–$150,000 | ~$955–$2,865/month |
| Laser cutting machine | $100,000–$500,000 | ~$1,910–$9,550/month |
| MIG/TIG welding package | $5,000–$20,000 | ~$95–$380/month |
Identify equipment needs and technical requirements
Gather quotes from multiple suppliers
Select funding type based on ownership goals and budget
Prepare financial documents for lender review
Negotiate interest rates and payment terms
Sign agreement and arrange delivery
Related: Understanding the Equipment Leasing Process Step-by-Step
Build equity in the equipment
Predictable payments
May require a down payment
Lower upfront cost
Easier upgrades
No ownership unless lease-to-own
Low rates, long terms
Slower approval process
Match repayment term to equipment lifespan
Ask about early payoff or upgrade flexibility
Compare total cost of ownership for each option
Consider maintenance and training in the financing package
Fund equipment through loans, leases, SBA programs, or vendor financing
Preserve cash while upgrading shop capabilities
Choose the option that fits your long-term goals
The right funding strategy lets you invest in the latest fabrication technology without jeopardizing your cash flow. Whether you’re adding a CNC machine or upgrading welding systems, financing ensures you can grow at the pace of demand.
Ready to expand your fabrication capacity?
Compare financing offers from banks, leasing companies, and equipment vendors today.