Rushcrest Commercial Capital in Kankakee, Illinois explains machine shop loans: equipment financing and leases for CNC and cutting machines, inventory financing for bar stock, working capital for long receivables and a second shift, with Kankakee County manufacturing figures.
At a glance
- Manufacturing, Kankakee County, IL
Manufacturing, Kankakee County, IL: $630.3 million in payroll, the largest of any sector (CBP 2023)
- Fabricated metal product manufacturing, Kankakee County, IL
Fabricated metal product manufacturers (incl. machine shops), Kankakee County, IL: 28 employer establishments, $32.4 million in payroll (CBP 2023)
- Fabricated metal product manufacturing, ZIP 60901
Fabricated metal product manufacturers with a ZIP 60901 address (Kankakee, IL area): 9 employers (ZBP 2023)
Kankakee County, IL manufacturing and metal shops in the Census figures
Manufacturing had 109 employer establishments in Kankakee County, IL in 2023, with 6,753 paid employees and $630.3 million in annual payroll, the largest payroll of any sector (County Business Patterns, 2023). Fabricated metal product manufacturing, the NAICS group that includes machine shops, accounted for 28 of those establishments, with 532 paid employees and $32.4 million in payroll; 13 had fewer than five employees. Nine had a ZIP 60901 address (ZIP Business Patterns, 2023).
The county also had 17 food manufacturing employers, 9 commercial and industrial machinery repair shops and 108 wholesale trade employers with paid staff (County Business Patterns, 2023). Eight more fabricated metal businesses had no paid employees (Nonemployer Statistics, 2024).
Machine Shop Financing: Saws, Lathes and a Second Shift at a Kankakee, IL Machine Shop
A second shift multiplies what each machine earns, but it also adds payroll, tooling wear and maintenance. A shop planning one should price the extra machine, if any, as equipment, and the first weeks of second-shift wages as working capital, since the parts that shift makes are invoiced and paid later. Saws and lathes, new or used, are standard equipment requests; a lender will want make, model, year, hours or condition, and the seller.
CNC Machine Loan Explained With a Kankakee County, IL Machine Shop Buying CNC Mills
A CNC machine loan pays the dealer, gives the shop the machine on delivery, and holds a lien until the last payment. Rigging, foundation work, power drops and tooling packages can be included if they are on the quote. For a used CNC mill, lenders ask for the control model and spindle hours.
Illustration only, invented figures: a $240,000 vertical machining center at an annual rate of 8.75% costs about $4,296 a month over 72 months, $309,312 in total; over 84 months the payment drops to about $3,831 and the total rises to $321,804.
Metal Shop Loans: Lathes and Long Receivables
A metal shop can wait 45 days or more on a large customer's payment terms, while steel, payroll and tooling are paid up front. Inventory financing or a line of credit drawn against open receivables carries that gap. A lathe purchase is separate equipment financing.
See inventory financing for bar stock.
How Does Leasing Machinery Work? Start With a Second Shift
With a machinery lease, the leasing company buys the machine and the shop pays to use it. A fair market value lease has lower payments and an end-of-term option to buy at the machine's value then; a $1 buyout lease has higher payments and ends in ownership, much like a loan. A second shift that may be temporary is a case where a lease's flexibility can be worth its cost.
Read whether to lease or finance machines.
Machinery Finance Bank for a Kankakee, IL Machine Shop: Fiber Lasers and Tooling
Banks finance machinery and may ask for a longer history and full financial statements; equipment finance companies and dealer programs finance it too, and their documentation can differ. For a fiber laser or a tooling package, comparing a bank quote with an equipment finance quote on the same machine shows the tradeoff between rate, paperwork and down payment.
Machine shop owners can also try the machinery payment and depreciation calculator.
Bar stock, tooling and a new customer's purchase order in Kankakee, IL
A new customer's purchase order can require steel, tooling and fixtures before the first part ships. The purchase order itself helps a request, because it shows who will pay and when. Inventory financing can buy the steel; equipment financing buys any new fixtures or machines; working capital covers the wages until the first invoice is paid.
Customer concentration matters to lenders: a shop with one customer providing most of its revenue reads as a different risk from a shop with many, so say so in the request.
Maintenance, rebuilds and spindle repairs at a Kankakee, IL machine shop
A spindle rebuild or a control retrofit can cost a large share of a machine's price and keep an older machine earning. Some lenders treat a rebuild that extends the machine's life as equipment; others see it as a repair and price it as working capital. Bring the rebuild quote and the machine's age to the conversation.
Records for a Kankakee, IL machine shop funding request
- Machine quotes with rigging, installation and tooling listed.
- Recent business bank statements and tax returns.
- An accounts receivable aging and the top customers' share of sales.
- Purchase orders behind a stock or expansion request.
- Every equipment loan and lease the shop already pays.
Read how manufacturers finance production equipment.
By Rushcrest Commercial Capital · Updated
