Manufacturing Business Loans
Get access to revolving funds when you need it most
Ezra Cabrera
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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.
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
Best Ways to Use a Manufacturing Business Loan
Purchase New 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Eventually, your existing equipment will become old and outdated.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
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
Best Types of Loan Programs for Manufacturing Businesses
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
A merchant cash advance is a quick financing solution for businesses needing working capital ASAP. An MCA functions like a loan, but it’s actually a cash advance against your business’ future sales. The lenders usually give you a lump sum, and you will repay the loan by taking out a percentage of your credit card sales.
Business Line of Credit
A business line of credit works just like a credit card, where you receive a lump sum of money, lenders give you a predetermined amount of capital. You’ll be able to withdraw funds from your credit line up to your limit. Some of the uses of a business line of credit include purchasing supplies, equipment, materials, inventory, or other business expenses.