A third-generation machine shop was offered its first aerospace contract, on the condition that it could hold tolerances its machines could not.
The situation
Qualifying required two five-axis machining centers and a coordinate measuring machine, roughly $1.6M of equipment, plus certified material paid for well before the first invoice.
The shop's existing lender capped equipment financing below the amount needed.
Our approach
We went to funding partners who know machine tools, who valued the machines on their resale market rather than at a generic advance rate.
The equipment was financed over seven years. A working capital line covered material and the longer payment terms aerospace customers expect.
- Seven-year equipment finance on the new machines
- Working capital line for certified material
- Funders chosen for their knowledge of machine values
The outcome
The shop completed qualification in four months. Aerospace work now makes up a fifth of revenue, at higher margins than its legacy business.
“We needed partners who understood what those machines are worth. That made all the difference.”
President, precision machine shop