Manufacturing Business Loans

Manufacturing Business Loans Can Help Your Business

How much are you looking for?

price

How a Manufacturing Business Loan Can Help Your Business

Running any business is hard. Cash flow is always an issue. Running a manufacturing business, however, comes with even more cash problems than other types of business.

Overhead expenses are outrageous. Customers don’t always pay their bills on time. Sometimes inventory piles up. Not to mention the unexpected or unbudgeted expenses. These are just some of many reasons why your business will often need additional working capital.

At SMB Compass, we understand the challenges of running a manufacturing business. That is why we’re committed to working with you to find a funding option to fit your needs.

SMB Compass has funded hundreds of manufacturing businesses, belonging to various industries, all over the United States. Some of them include:

  • Food, Beverage, and Tobacco
  • Textiles, Leather, and Apparel
  • Wood, Paper, and Printing
  • Petroleum, Coal, Chemicals, Plastics​, and Rubber
  • Nonmetallic Mineral
  • Primary Metal, Fabricated Metal, and Machinery
  • Computer and Electronics
  • Electrical Equipment, Appliances, and Components
  • Transportation
  • Furniture
  • Miscellaneous Manufacturing

Best Ways to Use a Manufacturing Business Loan

With a reputable funding partner, that believes in your business’ potential, you will have a shot at success.

Here are some of the ways you can use a manufacturing business loan:

Purchase New Equipment

Any manufacturing business needs equipment to operate efficiently. For example, in the clothing manufacturing industry, you need a number of pressing or sewing machines. If you manufacture computers or electronics, you need any number of expensive tools and equipment.

Eventually, your existing equipment will become old and outdated. You might need to purchase more equipment as your business expands. Regardless, one thing is for sure – repairing and purchasing equipment comes at a price, and you might not be able to afford that price out-of-pocket.

Instead of draining your savings, a manufacturing business loan can see you through.

Purchase Materials

Obviously, to manufacture goods and sell them to other retailers or other manufacturers, you need to purchase materials. Without the right materials, you can’t produce high-quality products for your clients.

If your company isn’t producing as good of products as your competition, you could lose customers, which will take a blow on your revenue stream. Without the money to purchase quality materials, the value of your goods will be compromised. By applying for a manufacturing loan, you can make the types of products your customers expect.

Business Expansion

If your business is growing and ready to expand, you’ll need some funds to sustain your growth. The costs of renting or purchasing commercial real estate, renovating your place, or adding news rooms add up quickly. Most businesses can’t pay for everything up front. A manufacturing business loan can help you buy the space you need to grow.

Cashflow Problems

Every business has experienced some type of cash flow issue. From slow or off-seasons, to unexpected business expenses, to over-investment mistakes, a manufacturing business loan can help solve your cash flow problems.

How Long Does Manufacturing Business Financing Take?

SMB Compass offers quick approval for your manufacturing business loan. Our company has provided more than $160,000,000 to small businesses all over the country. Our financial experts will take the time to find you a manufacturing business loan that fits your every need.

We offer fast and flexible funding. In four easy steps, your business will receive the funding you need:

l

Apply for a manufacture business loan online

Our simple online application lets you fill out and submit your request for funding. The process is pretty simple, but if you need help along the way, you can contact us via phone, chat, or email.

N

A friendly 5 to 10-minute introduction

The next step is an introductory conversation with one of our account executives. We will go over your needs and begin to discuss the different options available.

i

Documentation and underwriting

Once you make a decision and reach an agreement, we’ll provide closing documents to review the terms. We’ll also answer any final questions you might have.

Approval and funding in less than 24 hours

When your loan has been approved, we immediately send the funds to your business bank account within 24 hours.

Best Types of Loan Programs for Manufacturing Business Loans

SMB Compass offers different types of financing options for your business manufacturing needs. To ensure that your business gets nothing but the best, our trusted financial advisors will help you find the right loan, based on your business’ specific needs and goals.

Here are the most common types of financing for manufacturing businesses:

SBA 7(a) Loans

The Small Business Administration (SBA) began the SBA loan program to incentivize lenders to fund small businesses. About 85% of the loan is guaranteed by the SBA, which lowers the risk for financial institutions issuing the loan. This gives your manufacturing business a good chance of being approved.

Equipment Financing

One option for a manufacturing business loan is equipment financing. With equipment financing, your business can obtain and use new, state-of-the-art equipment, without the burden of large purchases out-right. The equipment you buy serves as collateral to secure the financing. If you fail to pay, the lender has the right to repossess the equipment. There are typically two options: equipment leasing or equipment loans.

Merchant Cash Advance

A merchant cash advance is a good option if your manufacturing business needs working capital ASAP, or if you don’t have good credit. Technically, a merchant cash advance is not a loan; as the name suggests, it’s more of a cash advance.

With a merchant cash advance, lenders provide you with the funds you need in exchange for a percentage of your daily credit/debit card transactions. While a merchant cash advance isn’t a loan, it still offers similar benefits. It also has a higher approval rate than other traditional loan programs.

Business Line of Credit

A business line of credit is structured similarly to a credit card. Unlike traditional loans, where you receive a lump sum of money, lenders give you a predetermined amount of capital. Your business can withdraw money from your credit line up to your limit. Once you pay toward your amount owed, your amount available goes back up. You can use a business line of credit to purchase supplies, equipment, materials, inventory, or most other business expenses.

Best Types of Loan Programs for Hotel Business Loans

SMB Compass offers different types of financing options for your hotel business needs. We have financial experts on hand, ready to help answer any question to make sure you find a loan product that fits your needs.

Here are the most common types of financing products for hotels:

SBA 7(a) Loans

The Small Business Administration (SBA) gives incentive for lenders to offer loans to small businesses by guaranteeing a percentage of the funds immediately. This makes SBA loans ideal for small businesses.

The SBA 7(a) loan is also ideal for hotel financing because it has low-interest rates, long repayment terms (10 to 25 years), and you can borrow up to $5,000,000. The SBA 7(a) loan is flexible, and you can use it to fund any hotel financing need, such as purchasing commercial real estate, construction, renovations, equipment purchasing, additional working capital, and more.

Asset-Based Loans

If your business doesn’t have enough revenue or cash flow to qualify for other forms of business financing, you might want to look into asset-based loans. Asset-based loans are ideal for businesses with a high value in assets or on their balance sheets.

Businesses can use their assets as collateral to secure financing. Most lenders consider the following as collateral for an asset-based loan:

  • Accounts Receivable
  • Inventory
  • Equipment
  • Intellectual Property
  • Real Estate
  • Marketable Securities

Merchant Cash Advance

A merchant cash advance is a good option if your hotel business needs working capital ASAP, or if you don’t have good credit. Technically, a merchant cash advance is not a loan; as the name suggests, it’s more of a cash advance.

With a merchant cash advance, lenders provide you with the funds you need in exchange for a percentage of your daily credit/debit card transactions. While a merchant cash advance isn’t a loan, it still offers similar benefits. It also has a higher approval rate than other traditional loan programs.

Equipment Financing

Buying new equipment for your hotel is expensive. Equipment financing provides you with the money you need to purchase new beds, washers and dryers, vehicles, or any other equipment your hotel needs. Typically there are two equipment financing options: equipment leasing and equipment loans.