Factory Finance by What You Make: CNC, Food, Metal Fabrication
Factory Finance by What You Make | Switchboard Finance
Manufacturing Hub
Manufacturing Finance · Vertical Depth · Equipment and Premises
Factory Finance by What You Make: CNC, Food, Metal Fabrication
CNC machining, food production and metal fabrication all live under the same factory roof, but a lender reads each one differently. The asset behind your loan, not your ABS code, sets the structure, the speed and the deposit.
Quick Answer
Factory finance is not one product. What you make shapes the lender read, so CNC cells, food-grade lines and metal-fab plant each carry their own resale depth and premises demands. Most files split across a chattel mortgage and a commercial property loan, sequenced through the Manufacturing Hub.
Why finance changes with what you make
Factory finance differs by vertical because a lender prices the asset and the building, not the industry on your letterhead. Two manufacturers can each spend the same on new plant, yet a deep-market CNC machine and a purpose-built food line clear credit on very different terms. The honest starting point is a finance map by what you make, not a single product pitch.
The thing that moves the decision is asset liquidity by vertical. A lender wants to know how readily the asset could be resold if a file went wrong, and that indicative resale depth varies by asset class. General machining centres and standard fabrication gear tend to have active secondary markets, while highly specialised, hygiene-rated or bespoke plant can sit thinner. That single read, more than the headline price, is what actually clears credit on these files.
Premises sit alongside the plant. A food producer carries a food-grade fit-out read, while a fabricator carries power and floor-loading questions, and each feeds a different vertical-specific lender appetite. The Australian Bureau of Statistics Australian Industry data is a useful read on where the sector sits, but the lending call comes down to the asset and the building in front of the underwriter.
Two lanes behind every factory file
Almost every manufacturer file resolves into two lanes. The plant runs on equipment finance, the building runs on property finance, and the trick is sequencing them so neither holds the other up. The table below is the structural difference a broker is working with before a single lender is approached.
When a deadline squeezes the premises lane
Where a settlement deadline squeezes the premises lane, a short-term private lending facility can sometimes hold the position until the term loan completes. That is a timing tool, not a default product, and it is assessed on the asset and the exit rather than income. The Manufacturing Loan Pack walks through how the two lanes are usually staged together.
Your vertical sets the lender read
Within the equipment lane, what you make still changes the call. Use the selector to see where each vertical tends to land, and where the file gets a closer look. In deals across CNC, food and fabrication, the sweet spot is usually the asset class with the deepest resale market and the cleanest premises read.
Select your vertical
CNC machining sits in the equipment lane's sweet spot
Machining centres tend to hold active secondary markets, so indicative resale depth is strong and a chattel mortgage usually fits cleanly. That liquidity is often what supports a higher indicative finance portion and a workable balloon, both of which vary by lender. The premises read is usually straightforward unless the cell needs special foundations.
Equipment-ledWhere food and fabrication change the read
Food production and metal fabrication move the read off the asset and onto the premises. Food production is the vertical where premises do more of the work. A food-grade fit-out read, drainage, hygiene rating and cool-room build can make the asset more purpose-built and the secondary market thinner, so the structure leans more on the building and the trading record. Metal fabrication brings the power and floor-loading on the metal-fab side to the front, which is why a fabricator file so often runs both lanes at once and resolves as a paired equipment and premises decision.
Where the strategy window sits this year
End of financial year is a strategy window for manufacturers, not a cliff. Most high-ticket factory plant sits above the small business instant asset write-off threshold, so it depreciates through the pool rather than being written off in full, and the Budget measure to make that threshold permanent from 1 July 2026 is not yet law. That means the financing decision should stand on its own footing, with a chattel mortgage keeping the funding question separate from the tax timing.
There are vertical-specific tailwinds worth a conversation rather than a headline. Concessional manufacturing programs and research incentives can sit alongside a commercial facility, and the right stack depends on the asset, the structure and the lender. A secured business loan read against an private lending alternative is the kind of comparison that decides what actually clears credit on these files. For the equipment side specifically, our note on used machinery finance for manufacturers and the lease-doc commercial property read cover the two lanes in more depth. You can also gauge a starting position through private lending terms before committing.
Factory finance is best read by what you make, not by a single product. CNC machining usually sits in the equipment lane's sweet spot on resale depth, food production leans on a food-grade fit-out read, and metal fabrication brings power and floor loading to both the plant and the building. Most manufacturers run an equipment facility and a premises facility together, sequenced so neither stalls the other.
Key takeaway: Match the structure to the asset's resale depth and the premises read, then sequence the equipment and property lanes so they settle in step.Frequently Asked Questions
Factory finance does differ across CNC, food production and metal fabrication, because lenders price the asset and the premises, not the industry label. CNC cells tend to carry deep resale markets and sit comfortably on a chattel mortgage, food production leans on food-grade fit-out and premises suitability, and metal fabrication brings power and floor-loading questions on both the plant and the building. The finance map by what you make is the starting point for any manufacturer file.
A CNC machine is usually financed differently from a factory unit because they sit on two different lanes. The machine is typically funded through equipment finance such as a chattel mortgage, secured by the asset itself, while the building is funded through a commercial property loan secured by the title. Many manufacturers run both at once and sequence them, which is where a broker read on indicative resale depth and premises suitability earns its keep.
When financing food production equipment, lenders typically look first at the food-grade fit-out read and how purpose-built the asset is, because specialised hygiene-rated plant can have a thinner resale market than general machinery. That asset liquidity by vertical shapes the structure, the indicative term and the deposit position, all of which vary by lender. A broker can match the file to a lender whose secured business loan appetite suits food production rather than treating all plant the same.
Metal fabrication equipment and premises can be financed together, though they are usually two facilities rather than one. The heavy plant runs on equipment finance while the shed runs on a commercial property loan, and the power and floor-loading on the metal-fab side influence both the building suitability and the asset valuation. Where timing is tight on a premises settlement, short-term private lending can also play a role before the term facility completes.
The instant asset write-off does not change how most factory machinery is financed, because high-ticket plant usually sits above the write-off threshold and depreciates through the small business pool rather than being written off in full. The Budget 2026 to 2027 measure making the threshold permanent from 1 July 2026 is not yet law, so treat the end of financial year as a strategy window rather than a deadline. A chattel mortgage keeps the financing decision separate from the tax timing.
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