A capacity upgrade is a complete project
The machine price may be only part of the investment. Power, installation, training, tooling and commissioning can affect when new capacity becomes usable. Prepare a project budget and a delivery schedule rather than treating the supplier quote as the whole cost.
Consider how the upgrade will affect labour, throughput, waste and maintenance. Base the business case on realistic utilisation and orders, not the maximum theoretical output.
Growth can increase the funding gap
More production can require more raw materials and wages before customers pay. Map inventory lead times, production time and debtor days so working capital remains visible beside asset repayments.
If customer concentration is high, include a delayed-order or delayed-payment scenario. Invoice finance may be relevant for eligible receivables, but not every order, deposit or disputed invoice is suitable.
What to prepare
- Machinery and installation quotes
- Production and commissioning timeline
- Inventory and receivables cycle
- Customer orders and cash flow assumptions
Common questions
Can imported machinery be considered?
Provider requirements vary. Deposits, shipping, currency exposure and delivery timing need to be explained before committing.
Should operating costs be included in the equipment loan?
Do not assume they can be. Separate the asset costs from recurring expenses and discuss the appropriate structure.
General information only. Product terms and availability vary. Check the actual proposal and obtain advice appropriate to your circumstances.