This Bellcrest Lending Group article, from a small-business funding service in Fond du Lac, Wisconsin, follows a welding shop through its first CNC purchase: what partners read, how to compare new and used machines, how to size the payment against expected work, and when a line of credit carries material costs. It uses Fond du Lac County fabricated metal figures.
Metal shop loans in Fond du Lac, WI
Metal shop loans fund machines, material and space. In Fond du Lac County, WI, fabricated metal product manufacturing counted 31 employer establishments with 677 paid employees and $38.6 million in payroll in 2023 (County Business Patterns), plus 25 metal businesses without paid employees in 2024 (Nonemployer Statistics, a separate program).
A welding shop that grows from repair and field work into production often reaches a point where a CNC plasma table, a press brake or a machining center would let it take on jobs it now turns away. That purchase is the subject of this article. The broader picture is on the metal shop loans page.
Machine shop financing options for Fond du Lac County, WI businesses
The options are an equipment loan, a lease, a dealer program, or, for a smaller machine, a draw on a line of credit. An equipment loan makes the shop the owner and uses the machine as collateral. A lease keeps payments for use and leaves the end-of-term choice open. A dealer program may bundle training and service.
- Equipment loan: ownership, depreciation on your books, the machine as collateral.
- Lease: payments for use, a buyout or return at the end.
- Dealer program: convenience, sometimes promotional pricing; compare in total dollars.
- Line of credit: fits small tools and tooling, not a large machine.
Can you finance a metal shop?
Yes, a metal shop can finance most of what it runs on: machines, welders, a service truck, a crane, ventilation, and the build-out to power it all. Partners read three things: the machine's value and seller, the shop's customer base, and its bank statements and returns.
A shop whose sales depend on one large customer should say so and explain the relationship. Concentration is not a dealbreaker, but partners want to understand it.
CNC equipment financing around Fond du Lac, WI
A first CNC machine changes a shop's numbers. Before asking for funding, estimate the hours the machine will run each month on real or likely work, the margin on that work, and the payment. If the work at a conservative estimate covers the payment with room to spare, the purchase reads well.
Illustration only, invented figures: a $120,000 CNC plasma table with $15,000 down leaves $105,000; financed over 72 months at 8.5% the payment is about $1,867 a month (our arithmetic). If the shop expects 80 billable machine hours a month at a $45 margin per hour, the machine earns $3,600 a month toward the payment (our arithmetic).
CNC machine loan math for a Fond du Lac, WI welding shop
Illustration only, invented figures: the same table bought used for $70,000 with $10,000 down leaves $60,000. Over 48 months at 9.5%, the payment is about $1,507 (our arithmetic): a lower price, but a shorter term because of age, so the monthly payment changes less than the price does. Run both through the arithmetic before choosing.
- New: warranty, training and current software; higher price.
- Used: lower price; ask for hours, service records and a test cut.
- Either way: budget rigging, freight, power work and tooling.
Material Costs and the Line of Credit for a Fond du Lac County, WI Shop
A bigger machine brings bigger jobs, and bigger jobs mean more steel bought before the customer pays. Illustration only, invented figures: a $40,000 production order needs $14,000 of material up front, and the customer pays 45 days after shipping. A $14,000 draw on a line covers the material and is repaid when the invoice clears.
A shop buying its first CNC machine may want a line of credit priced at the same time. The line of credit page explains draws and repayment, and equipment financing covers the machine.
What to Bring When You Call
- The machine quote, new or used, with the seller's details.
- The shop account's statements for the past twelve months.
- The latest tax returns.
- A short list of the jobs the machine will run.
Send it through the request form or call (920) 274-3387. The welding post has siblings on the Bellcrest blog.
By Bellcrest Lending Group · Updated
