Manufacturing Business Loans

How a Manufacturing Business Loan Can Help Your Business

Running any business is hard, and for many, cash flow always seems to be an issue. When it comes to operating a manufacturing company, business owners often encounter high overhead expenses, late-paying customers, unforeseen expenses, and more. These are just some of the many reasons why your business will often need additional working capital.

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.

SMB Compass knows the struggles of operating a manufacturing business. Which is why we make sure that your business will have access to working capital when you need it. Our company has funded various manufacturing businesses in the United States, and 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
Transportation
Furniture
Miscellaneous Manufacturing

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Best Ways to Use a Manufacturing Business Loan

By having a trustworthy lending partner, you can be sure that your manufacturing business is set up for greatness. Here are four different ways to use a factory 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Eventually, your existing equipment will become old and outdated.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, factory loans 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

Cashflow Problems

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Best Types of Loan Programs for Manufacturing Businesses

SMB Compass finds the best financing solutions for your business manufacturing needs. We will walk you through the entire process and recommend the best factory loans for you.

Here are four of the best manufacturing loans you can choose from:

SBA 7(a) Loans

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 bought acts as collateral to secure the financing. The lender can repossess the purchased equipment if you can’t pay back the loan. There are typically two options: equipment leasing or equipment loans.

Merchant Cash Advance

Business Line of Credit

Growth and Expansion

Fund Construction Projects

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Manufacturing Business Loans

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How a Manufacturing Business Loan Can Help Your Business

Best Ways to Use a Manufacturing Business Loan

Best Types of Loan Programs for Manufacturing Businesses