Founder’s Story: Ian Hessel and

A certified public accountant, Ian has evolved into an operational leader. After spending several years involved with international mergers and acquisitions he has settled into the role of entrepreneur, committed to solving the very problem that has plagued him for more than 2 decades. He may have the perfect background to solve this problem for manufacturers.

  • 27 years in automotive manufacturing in senior financial and operational roles
  • 8 years at Arthur Anderson, as a Senior Manager in the audit practice and a leader in leveraging computer technology to enhance audit effectiveness
  • CPA (inactive)
  • International M&A deal experience

The Decades-old Problem Plaguing Manufacturing: Funding Tooling Costs

Manufacturers in the supply chain are expected to fund the purchase of the tooling for new parts for up to two years before production of the agreed parts begins and in some cases, beyond the point they begin to supply the parts produced.

When we talk tooling we don’t mean hand tools, power tools, and sliders. We’re talking really big assets that are the size of a sedan or minivan, that go up and down on manufacturing presses to make parts.

Built for Manufacturing within or Supplying the Automotive and Aerospace Industries

The average car contains 40,000 parts – many generic but a large number of bespoke parts too which are designed specifically for a certain model. These bespoke parts require a bespoke tool (i.e. a template or mould) to be produced, which can be expensive to source and often takes up to a year to design, simulate and manufacture by a specialist tooling supplier. This can cause a great strain on cash flow and working capital.

Why Tooling Finance? Fighting the Cash Crunch caused by the Investment Required to Fund Tooling.

The automotive and aerospace industries are critical to the US, both as major employers and as two of the largest manufacturing sectors. They create and sustain strong supply chains involving many US companies. Ian is committed to supporting the industries, and their supply chains, with innovative funding solutions, such as Tooling Finance.

Tooling Finance from has been created specifically for manufacturers within or supplying the automotive and aerospace industries that require support for the purchase of ‘bespoke’ tooling.

This is Personal

At every turn, no matter the size of the company Ian was leading ($30M to $800M) or the tooling needs ($10K or $15M); this problem was always there. The cash crunch caused by the investment required for tooling was inescapable.

If you want to grow your company you must win new projects, which come with more tooling costs.

Then, beginning in 2019, the added burdens of Covid-19, union strikes, economic stimulus impacts on the labor force, plus supply chain impacts, further stressed cash flow. Something had to change.

Now, it is finally here: a funding option for tooling that solves cash flow and liquidity challenges.

Who is Tooling Finance for? 

Our Tooling Finance loan can help by funding the majority of the cost of the tool. To be considered, the following conditions must apply:

  • Tooling Finance loans are currently available only for manufacturers in the automotive and aerospace supply chain, supporting an Original Equipment Manufacturer (OEM) in the US or overseas.
  • The loan must be for the purchase of a bespoke tool, which will produce a specific part destined for use in an ‘end product’ made by an OEM (for instance a new car or engine).
  • The Tooling Finance loan must be repaid when the OEM pays for the tool (usually under contract and when parts supply begins). The loan will cover up to a maximum of 80% of the value of the tool.

How does it work and what are the benefits?

Tooling Finance loans help keep your regular working capital free to pay for everyday bills such as:

  • staff salaries
  • factory expenses
  • fund other projects

And it’s efficient. A Tooling Finance loan is highly tailored to the manufacturer’s needs and is agreed for the exact length of time it is required, so no paying for a longer credit period than is needed.

Extra lending is possible, depending on the contract between an OEM and parts supplier, and the credit status of the business applicant. It may be possible to win a greater level of funding than would be possible if using a more regular method of borrowing, such as an overdraft or business loan.

Extra assistance is available. Our dedicated Tooling Finance loans team will monitor the tool’s production and pay any staged payments previously agreed between the parts manufacturer and the tool’s producer, directly from the loan.

Loan features:

  • Borrow between $50K and $5M
  • For a period of up to 24 months
  • Variable-rate borrowing
  • Product fees may apply, and where applicable, drawdown fees and an arrangement fee will be charged
  • Loan interest to payments will apply

Now you can solve your liquidity challenges.

Tier I and Tier II automotive and aerospace manufacturers: get secured financing for your tooling projects.