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Learn how injection molding machine dealers can offer customer financing in the U.S. and Canada for new, used and automated molding systems.
An injection molder may need another press to replace an unreliable machine, add tonnage, increase cavitation or support a new production contract while still needing cash for resin, payroll, molds and plant operating costs.
For injection molding machine dealers, that creates a practical sales problem. The customer may have a legitimate need for a $200,000, $500,000 or larger machine but prefer not to make the entire purchase in cash.
A customer financing program gives dealers a structured way to introduce financing while independent commercial financing providers handle underwriting and funding.
Quick Answer: Injection molding machine dealers can offer qualified manufacturers third-party financing for new and used presses, automation and eligible auxiliary equipment without lending their own capital. Strong programs evaluate machine specifications, useful life, customer cash flow, molds and auxiliaries separately, and establish installation, acceptance and dealer-payout requirements before the machine is released.
A customer financing program connects the dealer's sales process with one or more independent commercial financing providers.
The dealer sells the machine.
The plastics manufacturer completes a commercial financing application.
The financing provider evaluates the business, owners, equipment and transaction and determines whether it will provide financing and under what conditions.
After financing documents and closing requirements are completed, the provider can pay the dealer according to the approved transaction. The customer then makes payments under its financing agreement.
The dealer therefore does not necessarily need to become the lender, carry the customer's receivable for years or use its own working capital to finance equipment sales.
Canadian dealers looking at the broader model can use Mehmi's Manufacturing Equipment Dealer Programs Canada, which covers payment quoting, lender routing, soft costs, commissioning and conditions-to-funding for industrial machinery dealers.
Mehmi also maintains a separate borrower-facing Injection Molding Machine Financing page. That page addresses the manufacturer purchasing a press; this article focuses on how the dealer builds financing into the sale.
An injection molding press is not adequately described by its purchase price alone.
An underwriter may need to understand characteristics such as:
Those details help explain what the machine can produce and how marketable it might be if the financing provider ever had to recover and resell it.
A mainstream press from an established manufacturer with current controls, service support and broad application can present a different collateral profile from a heavily customized older machine with obsolete electronics.
This is why an injection-molding dealer program should be built around equipment-specific underwriting, not just a generic commercial loan application.
Canadian buyers comparing adjacent manufacturing assets can also use Mehmi's CNC Machine Financing and Industrial Robot Financing pages to see how equipment characteristics change the credit discussion.
Manufacturers regularly use outside capital for productive equipment.
Statistics Canada's 2023 Survey on Financing and Growth of Small and Medium Enterprises found that 66.2% of Canadian manufacturing SMEs requested at least one form of external financing in 2023. External financing included debt, leases, trade credit, equity and government financing, so this is not an injection-molding approval rate. Statistics Canada — Survey on Financing and Growth of SMEs.
In the United States, the Equipment Leasing & Finance Foundation's 2024 Horizon Report found that 82% of surveyed end-users acquiring equipment or software in 2023 used at least one form of financing. The statistic covers equipment and software broadly rather than plastics machinery specifically. Equipment Leasing & Finance Foundation — Horizon Report 2024.
For dealers, the practical point is not that every manufacturer should finance its machine.
It is that financing is already a normal part of capital-equipment purchasing and should be available while the buyer is evaluating the press rather than after the sale stalls.
An injection-molding sale often contains more than the press.
Depending on provider policy, the transaction may potentially include eligible hard equipment such as:
The equipment schedule should identify these components rather than combining everything into one line such as:
Injection molding system — CAD $450,000
A cleaner quote might identify the press, robot, dryer, chiller and granulator separately.
That gives the financing provider a clearer view of where the collateral value sits.
Mehmi's broader Industrial Equipment Financing Canada guide specifically includes injection molding and plastics presses alongside automation, chillers, dryers and other manufacturing machinery.
No.
A mold can be extremely valuable to the customer while having much narrower resale value than the molding press.
A $100,000 production mold may be engineered specifically for one customer's component. If the financing provider had to recover the asset, the potential market for that mold could be extremely limited.
That does not automatically make mold or tooling costs unfinanceable.
It means the dealer should identify them separately.
Consider a transaction containing:
The financing provider should see that breakdown rather than one CAD $475,000 machine invoice.
A provider may finance the full project, require additional customer equity for the tooling component or structure the transaction another way.
Do not inflate the apparent press value to hide mold costs.
Clear itemization creates a stronger credit file.
The press can be excellent collateral and the transaction can still be weak if the customer's business cannot support the payment.
Depending on the size and risk of the request, a financing provider may review:
There is no universal U.S. or Canadian minimum credit score, annual revenue, down payment or time-in-business requirement across commercial equipment financing providers.
For injection molders, customer concentration can matter substantially.
A shop generating most of its revenue from one automotive, medical or consumer-products customer has a different risk profile from a diversified custom molder.
Credit may also want to know why the new press is needed.
A replacement for an unreliable machine can protect existing production.
A larger press may allow the company to bring outsourced work in-house.
Another machine may support an awarded production contract.
An additional machine purchased solely on hoped-for future demand creates a more speculative case.
Used presses can potentially be financed, but condition and obsolescence matter.
A financing provider may consider:
Do not treat a particular machine age as a universal financing cutoff.
A well-maintained older press that is currently running production, has updated controls and has good service support can be a materially different risk from an equally old machine that has been disconnected and sitting in storage.
Used equipment that has already been dismantled can create additional risk because the financing provider cannot easily observe it operating.
The buyer should also budget realistically for rigging, electrical work and recommissioning.
Mehmi's Used Equipment Financing guide explains why condition, ownership, useful life and seller verification receive additional attention on used commercial machinery.
Injection molding presses can create substantial installation costs.
A transaction may require:
Some financing providers may include reasonable soft costs when they are directly related to making the machine productive.
Those costs should still be itemized.
Installation risk also matters because the financing provider ultimately wants an operating asset, not an expensive machine sitting disconnected on the plant floor.
For Canadian manufacturing dealers, Mehmi's Documents Needed for Equipment Financing explains why equipment specifications, invoices, ownership evidence, insurance and payment flows need to align before funding.
The companion Equipment Financing Process: Step-by-Step Canada shows why conditional approval, documentation, security setup and final funding should be treated as separate stages.
Financing approval does not certify that a press is safe to operate.
In the United States, OSHA specifically identifies injection molding machinery as presenting hazards involving moving parts, nip points, high voltage and high temperatures. Its plastics-machinery guidance emphasizes guards, safety gates, interlocks and lockout/tagout procedures. OSHA — Horizontal Injection Molding Machines.
That becomes particularly important with used machinery.
A financing provider may be willing to finance an asset while the employer still has independent responsibility for machine guarding, installation and workplace safety.
A dealer should therefore avoid suggesting:
"It was finance-approved, so it is compliant."
Those are separate issues.
For used presses, missing or bypassed guarding can also affect practical asset value because the buyer may need to invest additional money before safely placing the machine into production.
A single lender or lessor can work well when a dealer sells similar machines to similar established manufacturers.
The limitations become more noticeable when transactions vary.
One customer may want a new CAD $250,000 press.
Another may purchase a CAD $700,000 all-electric machine plus automation.
A third may be a newer manufacturer buying a ten-year-old hydraulic press.
Those files can fall into different credit boxes.
A multi-provider or brokerage structure can create additional underwriting paths without requiring the dealer's sales team to maintain separate relationships with numerous financing companies.
That should still be a matched process.
The objective is not to send every customer's financial information everywhere.
More financing providers also do not guarantee approval or cheaper pricing.
A weak manufacturer does not become financially strong because a second lender reviews the application.
Canadian dealers setting up their first customer-financing workflow can use Mehmi's How to Offer Financing to Your Equipment Customers in Canada.
Assume a Canadian plastics manufacturer purchases a new injection molding machine and eligible auxiliaries for CAD $350,000 before applicable sales taxes.
This example is educational only. It is not a Mehmi Financial Group quote, approval or indication of currently available pricing.
Assume:
Using a standard fully amortizing loan calculation, the estimated monthly payment is approximately CAD $5,756.53.
Across 72 payments, scheduled repayment would total approximately CAD $414,469.99.
That represents approximately CAD $99,469.99 of interest on the CAD $315,000 financed balance.
Including the separate CAD $2,500 documentation fee, estimated financing cost would be approximately CAD $101,969.99, excluding the customer's down payment and other excluded costs.
The assumed 9.50% rate is not being presented as an all-in APR because the separately paid fee has not been incorporated into an APR calculation.
The customer should compare roughly CAD $5,757 per month with realistic production economics.
If the machine is expected to support a new contract, the manufacturer should consider not only expected sales but also resin, labour, mold maintenance, utilities, scrap, quality-control costs and the working capital needed to carry receivables.
Canadian dealers and buyers can model alternative equipment prices, contributions and terms using Mehmi's verified Equipment Financing Calculator. The calculator is denominated in CAD, excludes GST/PST/HST and states that its results are estimates rather than financing offers.
Commercial equipment financing in the United States commonly involves a security interest in the financed machine.
The Uniform Law Commission explains that UCC Article 9 provides the statutory framework for transactions involving credit secured by personal property, with each state maintaining a filing system for financing statements that disclose security interests in encumbered property. Uniform Law Commission — UCC Article 9.
A manufacturer may already have a bank with a blanket UCC filing covering machinery and equipment.
That does not automatically prevent another machine purchase.
It does mean the new financing provider may need to understand its lien position before funding.
The dealer's role is not to determine legal priority.
It should provide accurate customer legal names, serial numbers, invoices and equipment descriptions.
Permanently installed machinery can also create additional legal questions depending on how the machine is attached to the facility. Those questions should be handled by the applicable financing and legal parties rather than assumed from the fact that the press is bolted down.
Canada uses provincial secured-transactions systems rather than U.S. UCC terminology.
Ontario's Personal Property Security Registration system allows creditors to register notices of security interests in personal property used as collateral and conduct searches for existing liens. Ontario notes that registration helps establish priority among competing interests. Ontario — Personal Property Security Registration.
Quebec uses a separate civil-law framework.
The RDPRM identifies commercial equipment, tools, inventory and other movable property as categories that can be affected by registered rights. Quebec — RDPRM.
That matters especially when a dealer sells a used press, accepts a trade-in or deals with machinery already subject to financing.
Canadian dealers should therefore use PPSA/PPR terminology where appropriate in common-law provinces and RDPRM terminology in Quebec rather than referring generically to a "UCC lien."
New injection molding machines can have significant manufacturing lead times.
An OEM or dealer may require:
Do not assume a financing provider approving the completed machine will automatically fund those stages.
A lender or lessor taking long-term equipment risk may still be unwilling to advance a large amount against machinery that has not yet been manufactured or delivered.
The dealer and financing partner should determine before the purchase order is signed:
These questions become even more important when the machine is being imported or when several suppliers are providing the press, robot and auxiliaries.
A credit approval is not the same as funded proceeds.
Mehmi's current disclaimer states that preliminary approvals can change based on credit results, equipment verification, vendor verification, inspections, lien searches, documentation, insurance, down payment and other underwriting conditions. It explicitly notes that an approval or pre-approval is not the same as funding. Mehmi Financial Group Disclaimer.
Before releasing or shipping the press, the dealer should know whether the financing provider still requires:
An organized dealer financing program makes those conditions visible early instead of discovering them after the machine is already on a truck.
Not every molding machine purchase should be financed.
A manufacturer may be better off buying a smaller used press if the new machine creates excessive leverage.
Waiting can make sense when an expected production contract has not actually been awarded.
A company should also distinguish between an equipment need and a working-capital problem.
Financing a press does not automatically provide money for resin, payroll, mold fabrication and accounts receivable during a production ramp.
If the business is already operating at persistent losses, another equipment payment may make the problem worse.
Likewise, a long term should not be used merely to force an affordable-looking monthly payment on a machine with limited remaining economic life.
The strongest dealer financing program helps viable manufacturers acquire productive machinery—and is equally capable of concluding that the customer should contribute more equity, buy less equipment, choose used machinery or wait.
Yes. The dealer can introduce qualified commercial customers to independent lenders, lessors or a financing brokerage while remaining the equipment seller. The applicable financing provider makes the actual credit and funding decision.
Potentially. A complete production cell can be reviewed as one transaction when the invoice clearly identifies the press, automation, dryers, chillers and other major components.
Potentially, but custom molds can have significantly less resale value than the injection molding machine. Dealers should itemize mold and tooling costs separately so the financing provider can structure the transaction appropriately.
Potentially. Age, condition, controls, hours or cycles, maintenance, OEM support, seller ownership, purchase price and remaining useful life can all affect the decision. There is no single universal machine-age cutoff across providers.
Some financing providers consider newer businesses. Owner experience, credit, available liquidity, customer contribution, contracts and equipment quality can become more important when historical company cash flow is limited.
Potentially. Provider policies vary, particularly when soft costs become a large percentage of the overall project. These costs should be itemized rather than hidden in the press price.
No. Additional financing sources can create additional underwriting paths, but they cannot fix insufficient cash flow, excessive existing debt, weak collateral or an uneconomic expansion plan.
No. Mehmi Group Corp., doing business as Mehmi Financial Group, currently states that it operates as a commercial financing brokerage and intermediary rather than a bank or direct lender. Independent financing providers establish their own underwriting, pricing, documentation and funding requirements. Mehmi Financial Group Disclaimer.
A useful financing program should reflect the machines and customers your dealership actually serves.
When discussing a program with Mehmi Financial Group, be prepared to share:
Mehmi Financial Group operates as a commercial financing brokerage and intermediary. U.S. availability is state- and product-specific under Mehmi's current operating policy, and financing in either country remains subject to customer credit, equipment eligibility, documentation and independent provider requirements.
Call 833-863-4644 or use the verified Mehmi Financial Group contact page to discuss a customer-financing program for your injection molding machine dealership.
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