Manufacturing Business Loans up to $675,000
Are you a manufacturing business looking to strengthen and grow your operation? We’ve helped plenty of manufacturing companies get approved for up to $675,000 within 24 hours. Check if your business is eligible online with no obligations, no impact on your credit score, and no fees.
The manufacturing industry has fluctuating needs compared to other sectors regarding financing. A company’s inventory requirements, expansion activities, and heavy machinery purchases require consistent cash flow in order to keep the business operating smoothly.
There are several methods of financing available to help business owners access increased working capital for their ventures.
What Are Manufacturing Business Loans?
Manufacturing business loans allow manufacturing companies to acquire outside funding for business expenses and activities. Whether a company needs to cover equipment purchases, inventory, or fund expansion, it all requires working capital. Manufacturing loans make it easier for small business owners to access more funds.
Types of Manufacturing Loans
For manufacturing companies looking for funding that can sustain or grow their operations, there are a variety of funding solutions available. A merchant cash advance allows manufacturers to borrow money against their future earnings. Businesses repay merchant cash advances using a percentage of their sales.
Manufacturers typically require expensive machinery to manufacture their goods. If you’re unable to purchase the necessary equipment for your business, consider equipment financing. By investing in new equipment, your manufacturing business may be able to increase revenue or offer new products. In most cases, the equipment is used as collateral for the loan, with repayment periods lasting a few years.
There are a number of small business loans available to manufacturing companies. These are typically installment loans with fixed monthly payments, typically lasting a few years. The Small Busines Administration also offers a variety of loan products, including the general 7(a) loan, which does not have many restrictions.
Another SBA loan type that may be utilized by manufacturing companies is microloans. These enable you to receive up to $50,000, and can be used for most business related expenses, but cannot be used for debt consolidation or for real estate purchases.
Business lines of credit offer manufacturing businesses access to revolving credit, much like a credit card. By repaying the balance, the line of credit becomes available again. Your interest charge will be limited to what you have borrowed.
Unfortunately, customers do not always make payments on time. It may be worthwhile to consider invoice financing if you have unpaid invoices. You can receive up to 80% of what your company is owed.
How Do Manufacturing Business Loans Work?
Manufacturer term loans work the same way as any other loan. A lump-sum payment is released to the borrower if a lender approves an application. The repayment terms of a loan are stipulated as fixed monthly payments over a predetermined period of time. Payments consist of the principal loan amount plus interest and do not fluctuate throughout the loan.
Ways to Use Manufacturing Business Loans
Generally, manufacturing company loans can be used to cover any business-related expense unless lender restrictions apply. The most common uses for loans are manufacturing equipment purchases, inventory management, payroll, business acquisitions, paying taxes, and increasing access to working capital.
How to Qualify for a Manufacturing Company Loan (With the Best Rates)
To qualify for a manufacturing company loan with the best rates, specific criteria must be met. Most traditional lenders require a satisfactory business history of at least two years, good credit history, financial statements demonstrating profitability, and a practical purpose for the loan.
Where to Get a Manufacturing Business Loan
Small business owners can obtain financing for their manufacturing business through traditional brick-and-mortar lenders, alternative lenders, and seller financing.
How to Apply for the Best Manufacturing Company Loan
To be approved by MCashAdvance, you must meet the following requirements:
- U.S. citizens and legal residents only
- 18 years of age or older
- Your manufacturing business must be at least six months old
- A minimum credit score of 500 is required
You may be eligible for up to $500,000, depending on the financial health of your business.
Repayment periods typically range from one to five years. Funding amounts and sales volume may affect how long the repayment period is.
Pros and Cons of Obtaining a Manufacturing Loan?
Funding Options to Fit Your Manufacturing Needs
For manufacturing business owners, there are various funding options available based on their specific needs. Different types of funding are available to meet different needs, from traditional loans for expansion to lines of credit for recurring charges.
Access to Increased Working Capital
Cash availability is key to a company’s success in the manufacturing industry. Manufacturers can overcome cash flow gaps by looking for alternative financing methods and loans.
Getting Approved for a Manufacturing Loan is Difficult
A conventional financial institution generally requires two years of business history, demonstrated earnings potential, financial statements, and an acceptable reason for obtaining financing, as well as a good credit history with a minimum score of 600.
Interest Rates Are Dependent on Credit History
How affordable a loan will be for your manufacturing business depends on your credit score and credit history. Unstable credit will result in higher interest rates, which will increase the loan’s total cost. Increased loan costs may defeat the purpose of obtaining financing in the first place.
Collateral May Be Required
Many lenders require manufacturing companies to provide collateral to take out a small business loan to reduce risk and ensure debts will be repaid in full. If your business struggles to make payments on time, you risk losing your assets.
Frequently Asked Questions About Manufacturing Business Loans
Can You Get Manufacturing Business Loans With Bad Credit?
How Do Manufacturing Companies Raise Capital?
Business activities in the early startup stages are usually funded through an owner’s personal savings, lines of credit, merchant cash advances, loans, and invoice financing. As profits and aspirations increase, a business owner may seek additional funding through venture capitalists, angel investors, grants, or SBA loans.
Can You Get a Manufacturing Business Loan to Acquire Another Company?
Yes, manufacturing business acquisition loans are available to those who qualify. Another option to consider when purchasing another company is seller financing.
How Can I Improve My Chances of Getting a Manufacturing Business Loan?
Your company has the best chance of obtaining a manufacturing business loan with a strong application. A good credit history, a satisfactory business history, and assets that can be used as collateral will improve the chances of approval.
Funding Your Business Is Our Business
Manufacturing Financing Can Help Grow Your Business
A wide range of loan options are available for manufacturing businesses to increase profitability or increase the scope of their operations to new levels. If you would like more information on our financing solutions or if you are unsure where to start, feel free to contact mCashAdvance to speak with one of our representatives.
Don’t Allow a Lack of Funding
to Hold your Business Back
It’s Time To Move Your Business Forward!