The practical answer
Ownership arrangements need resolving before finance because the lender may need title or security over the funded asset.
Provide the customer contract and explain when tooling ownership passes, who pays for it and who can use it. Separate tooling from the production machine and other project costs.
Do not promise the same ownership rights to both customer and finance provider. The structure may need changing or separate funding, with legal advice where the rights are unclear.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: Equipment finance for a new contract →Explore the relevant guides
CNC & manufacturing finance — For production machinery, tooling and commissioning plans.