Production Equipment
Automated Storage & Retrieval System (AS/RS) Financing
Finance AS/RS systems including mini-load, unit-load, shuttle, and vertical lift modules. $50k minimum, large project financing available, B/C credit considered.
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Throughput per square foot is the defining metric of a high-density storage investment, and an automated storage and retrieval system is built entirely around maximizing that number. AS/RS installations replace low-density floor storage or static racking with a system that brings product to the operator rather than sending the operator to the product, and the pick rate improvement is typically measured in multiples rather than percentages. We finance AS/RS projects from vertical lift modules and horizontal carousels at the smaller end to complete unit-load craned systems that occupy full warehouse bays, starting at $50,000 with programs sized for seven-figure projects as well.
AS/RS financing is structurally different from a forklift or packaging machine transaction. The system is typically engineered-to-specification, installed by the OEM or a certified integrator, and commissioned over weeks or months. Lead times are long, projects involve multiple payment milestones, and the system often qualifies as equipment rather than as a building improvement, which is the collateral distinction that makes financing possible. Our programs are designed for this asset class, including milestone funding structures that match the OEM's payment schedule.
AS/RS System Types and Their Financing Profiles
Unit-load AS/RS systems use cranes running on rails inside a high-bay racking structure to store and retrieve full pallets. They are the highest-throughput, highest-cost category, with complete installations running $1M to $5M or more for mid-size systems. OEMs like Dematic and Honeywell Intelligrated build unit-load systems for manufacturers and distributors who need automated pallet-level storage at high cycle rates. Financing at this scale requires full underwriting, three months of bank statements, and often a project finance structure tied to the OEM's payment milestones.
Mini-load AS/RS systems store totes, trays, or small cases rather than pallets and are common in e-commerce fulfillment, pharmaceutical distribution, and electronics assembly. They operate at faster cycle rates per SKU than unit-load systems but at lower payload per cycle. A mid-size mini-load system runs $500,000 to $2M. The Dematic Multishuttle, for example, is a shuttle-based mini-load system that can operate simultaneously across multiple levels with a single shuttle per aisle. These systems are financed on the same project-finance structure as unit-load, with milestone payments and a final draw at commissioning.
Vertical lift modules (VLMs) are self-contained AS/RS units that store items on trays inside a vertical column and deliver trays to an ergonomic access opening. A single VLM runs $25,000 to $80,000 and is often purchased in multiples. A two- to four-unit VLM installation meets our minimum comfortably. VLMs are common in parts rooms, tool cribs, pharmaceutical dispensing, and manufacturing kitting operations. They are the most accessible entry point for AS/RS investment and the most straightforward to finance.
Horizontal carousels are rotating pod systems that bring items to the operator on a rotating track. They are lower-cost than VLMs in comparable capacity and are used in mail order, parts distribution, and light assembly kitting. A carousel system from $50,000 to $200,000 is fully within our standard equipment financing programs.
Milestone Funding for AS/RS Projects
The challenge in AS/RS financing is the lead time. An OEM may require a 30 to 50 percent deposit at order, a progress payment at 60 or 70 percent completion, and a final payment at delivery and commissioning acceptance. That schedule does not match a conventional equipment loan that funds at delivery. We structure AS/RS transactions with milestone funding that releases capital at each OEM payment event, so the lender's funds flow in sync with the project rather than in a lump sum at the end.
The documentation package for an AS/RS project includes the OEM contract or purchase agreement, a project timeline with milestone dates, three months of business bank statements, and a signed application. For projects above $1M, financial statements for the most recent two years are typically required in addition to bank statements. We work through the documentation checklist with you before you submit so there are no surprises mid-process.
After commissioning, the system transitions to a standard monthly payment schedule. The term is set against the system's useful life, which for a major AS/RS installation can span 15 to 20 years. That allows terms of 84 months or longer on qualifying projects, which reduces the monthly payment relative to shorter standard equipment terms and improves the return on investment timeline. Consider pairing the AS/RS project with a Production Line Upgrade Financing structure if the AS/RS installation is part of a broader facility modernization.
Why AS/RS Investment Is Accelerating
Labor cost and labor availability in warehouse environments have both become structural challenges for operators running manual picking operations. An AS/RS system that reduces travel time within the warehouse and brings the pick to the operator rather than the reverse reduces the headcount required per unit of throughput, which improves the economics of the system over time. The payback calculation has become more favorable as wage rates have increased.
E-commerce fulfillment speed expectations have also pushed investment in mini-load and shuttle systems that can process thousands of order lines per hour. A fulfillment center handling 15,000 order lines per day with manual picking requires significantly more floor space and headcount than one running an automated shuttle or mini-load system at the same throughput. The Third-Party Logistics (3PL) has been a major driver of mid-size mini-load AS/RS investment for this reason.
The pharmaceutical and medical device manufacturing industries also invest heavily in AS/RS for inventory control, traceability, and FIFO dispensing compliance. A Pharmaceutical Manufacturing or sterile manufacturing facility that requires lot-controlled FIFO inventory management benefits from an AS/RS system that enforces that protocol automatically rather than relying on manual compliance.
Finance Your AS/RS Project
Send us the OEM proposal, project timeline, and your organization's financials. We structure milestone-funded transactions for AS/RS projects of all sizes and can coordinate with the OEM's payment schedule. We also handle the Material Handling Equipment Financing and Order Picker Financing around the AS/RS in the same transaction. Minimum $50,000.
Questions About Automated Storage & Retrieval System (AS/RS) Financing
Clear answers on equipment eligibility, documentation, timing, and transaction structure before you send the file.
Our AS/RS project has a 10-month lead time and the OEM wants payments at three milestones. Can you fund at each milestone rather than all at once?
Yes. Milestone funding is standard for AS/RS transactions. We structure a committed credit facility that funds at each contractual milestone: deposit at order, progress payment at build, and final payment at acceptance. The payment schedule does not begin until after the final draw, or sometimes at a negotiated point after commissioning.
Our AS/RS will be permanently installed in a leased building. Will lenders treat it as a fixture?
AS/RS systems, even those that are rack-mounted and structurally integrated into a building, are typically treated as equipment for financing purposes when they are owned by the operator rather than the building owner. A landlord subordination agreement may be required to confirm the lender's priority interest in the equipment ahead of the landlord. We handle this documentation as part of the closing process.
Can we finance the software and integration services that are part of the AS/RS contract, or only the hardware?
Software, integration services, and installation are soft costs. Some lenders will include them in the total financed amount up to a percentage of the hardware value, typically 15 to 25 percent. The hardware must be the primary collateral. For a large AS/RS project, the soft cost component can be material, so we establish upfront what each program will and will not include.
We are buying a used AS/RS from a company that is closing a facility. Is used AS/RS financing available?
Used AS/RS equipment is financeable when the system is identified by OEM serial numbers, in operable condition, and supported by a serviceable OEM or dealer network. Older or obsolete control systems can limit financing eligibility because parts and support availability affect residual value. An inspection and condition report from a qualified AS/RS technician strengthens the file significantly.
What is the minimum project size to access milestone-funded AS/RS financing?
Our minimum transaction size is $50,000, which covers VLM and horizontal carousel purchases. Milestone-funded project structures are typically used on transactions of $300,000 and above, where the multi-payment OEM contract structure makes it necessary. Smaller AS/RS purchases generally fund in a single disbursement at delivery.
Finance Your Automated Storage & Retrieval System (AS/RS) Financing
Send the equipment quote, seller details, price, deposit, and delivery schedule. The financing desk will review the file and return a practical next step.