Arizona Manufacturing Secures Growth Capital

Arizona Precision Manufacturing used a $125,000 working capital loan to expand production capacity and reduce lead times, achieving 35% revenue growth within 12 months.

Quinn Navarro, Operations Director & Plant Manager of Arizona Precision Manufacturing a manufacturing business in Arizona standing with subtle confidence

Executive Summary

Arizona Precision Manufacturing faced a critical cash flow constraint despite strong sales demand. The company secured a $125,000 working capital loan to fund inventory expansion and equipment acquisition, enabling them to capitalize on growing aerospace and automotive contracts.

The Challenge

Cash flow timing mismatch between supplier payments and customer invoicing created 45-day payment cycles
Production bottlenecks due to limited CNC machine capacity resulted in 6-8 week lead times
Inability to purchase raw materials in bulk, missing volume discounts from suppliers

The Solution

Arizona Precision Manufacturing needed working capital to smooth out their operational cash flow cycle while simultaneously removing production constraints. A traditional equipment loan wouldn't address the immediate inventory needs, making a flexible working capital solution ideal for their situation.

The $125,000 loan was strategically deployed across three key areas: $55,000 was allocated to purchase raw materials and maintain optimal inventory levels, $50,000 was used to acquire a used CNC milling machine to increase production capacity, and $20,000 was reserved as operating capital buffer. This combination allowed the company to reduce lead times from 6-8 weeks to 2-3 weeks while maintaining consistent production throughout their sales cycles.

Quinn Navarro, Operations Director & Plant Manager
"The working capital loan was instrumental in bridging our cash flow gaps during rapid growth. We invested in equipment and inventory that directly enabled us to fulfill larger orders and meet aggressive customer timelines."

The Outcome

Production capacity increased by 40%, reducing average lead times from 7 weeks to 3 weeks and improving customer satisfaction scores to 94%
Revenue grew 35% year-over-year, reaching $2.1M in annual sales with improved profit margins of 18% due to bulk material purchasing
Employee headcount expanded from 24 to 32 technicians, and the company secured three new long-term aerospace contracts worth $450,000 over 18 months

Conclusion

The working capital loan proved transformational for Arizona Precision Manufacturing by removing operational constraints that were limiting growth. The company successfully converted market demand into sustainable revenue expansion while improving operational efficiency and customer service metrics.

Looking Forward

Arizona Precision Manufacturing is now evaluating a second phase expansion loan to acquire a second CNC machine and establish a second shift operation. The company has established a strong banking relationship and demonstrated the ability to service debt while scaling operations in Arizona's competitive manufacturing landscape.