With the manufacturing sector making up a significant share of revenue for most countries, it’s important for business owners to be able to quickly and easily access funds when they need them. Manufacturing loans help companies meet demand, keep cash flow steady and purchase new equipment that can boost production. These loans are available to companies with both good and bad credit, with some loan options more flexible than others when it comes to lending standards and rates.
Manufacturers require a great deal of capital to operate successfully, from purchasing raw materials to paying for shipping costs and labor expenses. With so many moving parts, it can be easy for a company to find itself facing unanticipated financial needs or cash flow pinches that are difficult to overcome without the right funding partner. With a quick and simple application, businesses can get a manufacturing loan that helps them take advantage of opportunities to grow, purchase new equipment and more.
As the COVID-19 shutdown came to a close, the US economy is now starting to recover and many small businesses are looking to take advantage of this opportunity. For manufacturers, this means resuming operations, expanding into new markets and purchasing the equipment and technology needed to scale their businesses. Luckily, lenders are more forgiving than ever and there are several different types of loans available that can help companies obtain the financing they need.
One type of financing that’s growing in popularity with manufacturers is a business line of credit. This loan offers flexible financing terms that allow businesses to borrow up to a set amount, which they can use as needed. Essentially, it works like a credit card and allows the business to pay only interest on the money that’s borrowed.
Another option for businesses is a financing solution that can help them cover the costs of raw materials and labor for orders that are not yet completed, known as Work In Progress (WIP) Financing. With this type of financing, a lender will cover the cost of the required materials on behalf of the business, then when the order is ready for delivery, the business pays the lender back. This can free up working capital and allow a business to fulfill more orders with greater efficiency.
In addition to these lines of credit and working capital loans, there are other types of manufacturing financing that can be beneficial for businesses. For example, a commercial mortgage can be used to secure financing for the purchase of manufacturing property. This can help companies expand into new markets and increase the value of their assets.
With the help of the right lender, business owners can quickly and easily get a manufacturing loan that will give them the working capital they need to take advantage of opportunities to grow their companies. With online lenders and lending marketplaces becoming more agile in their funding options, it’s easier than ever for businesses to find financing solutions that even traditional banks won’t provide.