The tools, equipment, and machinery manufacturing sector is the backbone of India’s industrial progress, enabling advancements across industries such as construction, automotive, agriculture, and manufacturing. MSMEs in this sector specialize in producing industrial tools, precision machinery, and specialized equipment, ensuring India’s self-reliance in industrial production. With the government’s push through initiatives like ‘Make in India’ and ‘Aatmanirbhar Bharat,’ MSMEs in this field have vast opportunities to grow, modernize, and integrate with global supply chains.
While this sector holds immense potential, MSMEs engaged in machinery manufacturing face significant financial hurdles. High initial investments, the need for continuous technological upgrades, and the challenge of long production cycles necessitate robust financial backing. Ensuring smooth cash flow, managing inventory, and funding expansion efforts require tailored financial solutions.
Customized Financial Solutions for MSMEs in Tools & Machinery Manufacturing
a. Working Capital Solutions
- Flexible Credit Lines: Keeping production lines running requires consistent cash flow. Flexible credit facilities help MSMEs procure raw materials, manage payroll, and cover operational costs efficiently.
- Invoice Discounting & Bill Financing: With long payment cycles being common in industrial supply chains, invoice discounting provides immediate liquidity against pending receivables.
- Overdraft Facilities: Helps in addressing short-term cash flow fluctuations, ensuring uninterrupted business operations.
Capstone has successfully provided working capital financing solutions for businesses ranging from small-scale manufacturers to enterprises requiring structured credit facilities of up to INR 250 crore.
b. Long-Term Investment Support
- Machinery Loans: Given the high costs of importing and upgrading machinery, term loans for capital expenditure enable businesses to invest in modern, high-precision equipment, improving productivity and quality standards.
- Factory & Infrastructure Financing: Expanding manufacturing capacity requires substantial investment in land, factory setups, and infrastructure, for which structured term loans with flexible repayment options are available.
- R&D and Technology Upgrade Financing: To remain competitive in global markets, MSMEs must invest in automation, AI-driven manufacturing, and IoT-enabled tools. Special funding solutions are available for innovation-driven projects.
c. Bridge Financing – Unlocking Growth Without Collateral
One of the biggest challenges for MSMEs in this sector is the requirement of substantial upfront capital for bulk orders, while payments are often received after delivery. Unsecured bridge financing offers a short-term funding solution to bridge this gap, allowing MSMEs to fulfill large orders, buy raw materials, and manage production costs without needing additional collateral.
- Loan Amounts: INR 2 crore to 25 crore
- Fast Processing: Quick disbursal ensures no disruption in the supply chain
- No Additional Security Required: Ideal for businesses facing temporary liquidity crunches due to high working capital cycles
This tailored approach to financial assistance enables MSMEs to confidently take on bigger contracts, scale up operations, and improve delivery timelines without worrying about cash flow constraints.
Industry-Specific Growth Assistance
- Subsidized Loans for MSMEs under ‘Make in India’ & ‘Aatmanirbhar Bharat’ initiatives
- Priority funding for manufacturers integrating sustainability and energy-efficient technology
- Special assistance for first-time borrowers and small-scale manufacturers transitioning to mid-sized enterprises
Capstone specializes in understanding the unique financial needs of MSMEs in the tools, equipment, and machinery manufacturing industry. By offering customized financial solutions, we ensure businesses can scale operations, invest in new technology, and enhance productivity while maintaining financial stability.
