Robotics and Automation Equipment Financing in Canada
Automation projects often combine a robot with integration, tooling, guarding, software and other equipment. Lenders need to see the complete system and cost breakdown.
The robot arm is often only one line on the quote
Automation projects can look simple from the factory floor and complicated on paper.
A robot may need an end effector, vision system, controls, safety equipment, guarding, fixtures, software and integration before it can perform useful work.
That makes the vendor quote especially important.
The lender needs to understand what physical equipment is being purchased and what portion of the project relates to engineering or services.
Explain the application clearly
Robots are used across manufacturing for machine tending, welding, material handling, assembly, inspection and other repetitive processes.
Tell the lender exactly what your system will do.
A machine tending robot attached to an existing CNC cell is a different project from a complete robotic welding cell or palletizing system.
The clearer the application, the easier it is to understand the asset.
The integrator matters
Many automation projects are delivered through a system integrator rather than directly from the robot manufacturer.
Identify the integrator and provide the full proposal.
If the integrator is building custom fixtures or controls, show those costs separately.
A lender may have questions about payment milestones because automation projects are often built and tested before final delivery.
Deposits and progress payments should be discussed before you sign
Some automation suppliers require a deposit at order, another payment during the build and a final amount at acceptance.
That payment schedule can affect the financing structure.
Do not assume the lender will automatically fund a series of progress payments.
Provide the payment schedule while the financing request is being reviewed.
Existing equipment can be part of the story
An automation system may be installed around equipment your business already owns.
For example, a robot may load and unload two existing CNC machines.
Explain that relationship so the lender understands why the automation has value to the operation even though the CNC machines are not part of the new purchase.
What should you provide?
- Integrator or vendor proposal
- Robot manufacturer and model
- Application
- End of arm tooling
- Vision equipment if applicable
- Controls and software
- Safety equipment and guarding
- Integration and installation cost
- Payment schedule
- Expected completion date
Used robots require support and configuration questions
Used robotic equipment can be financeable, but a robot taken out of one application may need meaningful work before it fits another.
Ask what controls, tooling and safety equipment are included.
Confirm whether the system can be supported and integrated into your plant.
The purchase price of the used robot should not be confused with the total cost of putting it into production.
Automation financing works best when the whole project is visible
Do not split a connected project into several financing conversations unless there is a reason to do so.
If you are buying a CNC machine and a tending robot together, show both quotes.
If you are buying a complete welding cell, show the robot, power source, positioner and integration together.
Raymond Leigh can review the full manufacturing project and determine which financing partners are worth approaching.
If your automation quote is ready, send the proposal and business details for review.
Let's see if we can help!
A short conversation is usually enough to tell you which financing options fit and what they could look like.
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