Manufacturing Equipment Financing in London, Ontario

One city, several manufacturing equipment profiles

A London food manufacturer may be financing mixers, filling equipment, packaging lines, refrigeration or conveyors. A metal or automotive supplier may need CNC, laser, welding, stamping or inspection equipment. Medical-device and aerospace manufacturers can be buying highly specialized machinery where validation, integration and resale value matter more than on a standard asset.

The financing structure therefore starts with the actual machine and production project, not simply the NAICS code of the borrower.

Replacing equipment versus adding capacity

Replacement equipment is often easier to explain operationally because the business already uses a similar asset and can show what the existing machine does.

Capacity expansion requires a different discussion. The lender may want to understand why the extra capacity is needed, whether demand is tied to contracts or recurring customers, and how the added payment fits current cash flow.

A strong file does not need a dramatic growth story. It needs a credible explanation of what the equipment is for and how the business supports the obligation.

Used equipment and seller type

London manufacturers can buy machinery from dealers, auctions, private sellers or other businesses. The seller type changes the transaction work.

Used machinery may require additional information about age, condition, value, maintenance and serial identification. Private sales and liquidations can require more ownership and lien diligence. Auctions introduce settlement deadlines that may not leave enough time if financing is started after the bid.

The earlier the financing conversation starts, the easier it is to identify those issues before cash is committed.

Full project costs matter

A $500,000 machine can be only part of a larger project once freight, rigging, electrical work, tooling, software, training and site preparation are included.

Not every cost is treated the same way by every financing source. Raymond Leigh separates the hard equipment from ancillary and site costs so the borrower knows what may require cash or a different facility.

For manufacturers adding a major production line, inventory and working-capital needs should also be considered before the machine is ordered.

How Raymond Leigh handles London files

Raymond Leigh works with 40+ Canadian lenders and financing partners and typically handles equipment requests from $50,000 to $5,000,000.

We review the business, equipment, seller, amount and project timing before deciding where the file should go. Final credit decisions and terms come from the financing source.