Case Study

$1,000,000 Capital Lease for Aerospace & Defense Manufacturer in Michigan

A Michigan-based aerospace and defense manufacturing company partnered with Commercial Funding Partners (CFP) to finance a $1,000,000 capital lease for a modular clean room, a critical…

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A Michigan-based aerospace and defense manufacturing company partnered with Commercial Funding Partners (CFP) to finance a $1,000,000 capital lease for a modular clean room,…

Primary Detail

Overview

Main Constraint

This complex, multi-vendor project came with several logistical and financial hurdles:

1. Overview

A Michigan-based aerospace and defense manufacturing company partnered with Commercial Funding Partners (CFP) to finance a $1,000,000 capital lease for a modular clean room, a critical upgrade to support advanced production requirements and meet strict industry standards.

2. The Challenge

• The nine-month build, and delivery timeline required staged capital disbursements.
• The project included a high percentage of soft costs (mechanical, electrical, and installation), which are often challenging to finance.
• During installation, a key component broke, threatening further delay and cost overruns.

3. Our Solution

Commercial Funding Partners stepped in with deep experience and flexible structuring to ensure the project stayed on track from concept to completion:

• Capital Lease Structure: Designed to give the client ownership at the end of the term while preserving near-term cash flow.
• Milestone-Based Funding: CFP coordinated progress payments to multiple vendors and aligned them with project build phases, eliminating bottlenecks and keeping the timeline intact.
• Soft Cost Inclusion: CFP structured the lease to include a significant portion of soft costs, which covered installation, mechanical, and electrical components typically excluded by traditional lenders.
• Rapid Resolution of Equipment Failure: When a critical piece of equipment broke during installation, CFP worked swiftly with the customer and vendor to replace the unit without disrupting the project timeline.

4. Results

• The manufacturer completed the installation of a fully functional modular clean room.
• The project remained on schedule, even with unexpected equipment issues.
• The company preserved its capital and benefited from a structured path to equipment ownership.
• The client now operates within enhanced clean room conditions, allowing them to meet increasing demand and maintain compliance in a heavily regulated industry.

5. Why It Matters

This deal illustrates CFP’s ability to handle long-lead, multi-phase capital projects with high complexity. From including soft costs in the lease to managing unexpected installation issues, CFP delivered the agility and execution that sets us apart as a true funding partner, not just a lender.

Transaction Snapshot

• Funding: $1,000,000 Capital Lease
• Industry: Aerospace & Defense
• Asset: Modular Clean Room
• Location: Michigan, USA

Complex Project Solution

• Challenge: 9-month, multi-vendor build with high soft costs.
• Solution: Staged, milestone-based payments to all vendors.
• Flexibility: Financed installation, mechanical, and electrical costs often excluded by other lenders.

Crisis Management

• Problem: A key component broke during installation, threatening delays.

6. Have a Complex Project on the Horizon?

Disclosure: This case study is anonymized unless CFP has approved a specific public descriptor. Customer names and non-approved identifying details are withheld. Financing availability, structure, timing, and terms depend on borrower qualifications, collateral, documentation, and final underwriting.