Powering Manufacturing Growth Through Strategic Equipment Financing
In today's competitive manufacturing landscape, having the right equipment isn't just an operational necessity—it's a strategic advantage. Our specialized financing solutions help you acquire the machinery and technology you need without depleting your working capital.
Preserve Working Capital
We help manufacturers understand and maintain protection under this federal law that limits a state's ability to impose income tax on out-of-state businesses selling tangible personal property.
Tax Advantages
Leverage potential tax benefits including deductions for interest payments and depreciation on financed equipment.
Flexible Terms
Access customized financing structures aligned with your cash flow patterns and business seasonality.
Equipment Financing Options
Equipment Loans
Traditional financing where you borrow a specific amount to purchase equipment and repay over time with interest.
- •Ownership of equipment from day one
- •Fixed interest rates and predictable payments
- •Terms typically from 2-7 years
- •Potential Section 179 tax deductions
Best for: Long-term equipment investments with clear ROI projections
Equipment Leasing
Rent equipment for a specified period with options to purchase, upgrade, or return at the end of the term.
- •Lower monthly payments than loans
- •Easier to upgrade to newer technology
- •100% financing with minimal upfront costs
- •Operating leases may be fully tax-deductible
Best for: Technology that requires frequent updates or temporary production needs
SBA Equipment Financing
Government-backed loans with favorable terms for small and medium-sized manufacturers.
- •Lower down payments (often 10-20%)
- •Longer repayment terms up to 10 years
- •Competitive interest rates
- •Available for businesses that might not qualify for conventional financing
Best for: Growing manufacturers with limited credit history or collateral
Line of Credit for Equipment
Flexible revolving credit that can be used for equipment purchases as needed.
- •Draw funds as needed for multiple equipment purchases
- •Only pay interest on what you use
- •Reuse available credit as you pay down the balance
- •Quick access to funds for unexpected equipment needs
Best for: Ongoing equipment needs or unexpected replacement requirements
Our Equipment Financing Process
Step 1
Assessment & Strategy
Step 2
Financing Package Development
Step 3
Lender Matching & Negotiation
Step 4
Documentation & Closing
Step 5
Implementation & Ongoing Support
Success Story: Precision Parts Manufacturer
$1.2M CNC Equipment Upgrade
A precision parts manufacturer needed to upgrade their CNC machinery to meet new customer requirements but was concerned about depleting their working capital during a period of rapid growth.
Challenge:
The company needed $1.2M in new equipment while preserving cash for increased material purchases and hiring.
Solution:
We structured a hybrid financing package combining an equipment loan with favorable terms for 80% of the purchase and a sale-leaseback of existing equipment to cover the down payment.
Results:
- • Acquired all needed equipment with $0 out-of-pocket
- • Increased production capacity by 40%
- • Reduced per-unit production costs by 22%
- • Secured $3.2M in new contracts within 6 months
- • Achieved 100% ROI on equipment within 18 months
"Schapira CPAs didn't just help us get financing—they helped us structure a deal that supported our entire growth strategy. The equipment upgrade was just one piece of a comprehensive financial plan that has transformed our business."
— Operations Director, Precision Parts Manufacturer
Calculate Your Equipment ROI
Our equipment ROI calculator helps you determine the financial impact of your equipment investment, including tax benefits, productivity gains, and payback period.
Frequently Asked Questions
These principles guide everything we do and define our approach to serving our clients.
Most manufacturing clients begin to see improvements within 30-60 days of implementing our recommendations. Quick wins often come from accounts receivable acceleration and inventory optimization. More substantial improvements in the cash conversion cycle typically take 3-6 months as new processes become established. We develop both short-term and long-term strategies to ensure you see immediate benefits while building sustainable cash flow improvements.
We address seasonal fluctuations through a combination of production smoothing, strategic inventory management, vendor payment scheduling, and targeted financing solutions. Our approach begins with analyzing your specific seasonal patterns to identify peak cash needs. We then develop strategies to build cash reserves during strong periods, negotiate favorable terms with suppliers, and implement production schedules that balance efficiency with cash flow requirements.
Yes, we specialize in helping manufacturers manage cash flow during growth phases and capital investments. Our approach includes developing detailed cash flow projections for the expansion period, identifying optimal financing structures, creating phased implementation plans that minimize cash strain, and establishing cash flow monitoring systems. We also help evaluate equipment financing options (lease vs. buy) and timing strategies to align with your cash flow capacity.
Our manufacturing cash flow forecasts typically include weekly projections for the next 13 weeks and monthly projections for 12-24 months. We incorporate detailed components including customer payment timing, inventory purchases, production costs, payroll, tax obligations, debt service, and capital expenditures. We also develop scenario-based models to help you prepare for different business conditions. All forecasts are regularly reconciled against actuals to improve accuracy over time.
We take a holistic approach that considers both cash flow and operational requirements. Rather than simply reducing inventory across the board, we conduct SKU-level analysis to identify where inventory can be safely reduced and where adequate stock is critical for production efficiency. We help implement just-in-time inventory systems where appropriate, develop safety stock formulas based on lead times and demand variability, and create inventory management policies that balance working capital efficiency with production needs.
Make Today
Profitable
Unlock hidden tax savings within your manufacturing facility. Contact Schapira CPA to explore how a Cost Segregation Study can accelerate deductions and boost your cash flow.
