How money moves in this industry
Deposits for materials and machine upgrades may precede customer payment by weeks or months. Capacity, work in progress and debtor quality matter to the funding structure.
A practical example
A fabricator buys a machine to fulfil larger orders but must also hold more steel and cover wages during production.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Plant and machinery
- Raw materials
- Work in progress
- Factory premises
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- CNC machinery
- Production lines
- Forklifts and tooling
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- Is demand backed by purchase orders or historical sales?
- How long is production and customer payment?
- Is the plant general purpose or highly specialised?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider machinery breakdown, property, business interruption cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.