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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.
AB Funding 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:
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How Does Fast Business Loans Financing Work?
AB Funding 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:
The Small Business Administration created SBA loans to help small business owners succeed. 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 higher chance of being approved.
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.
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.
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.
While it’s great to have an established online presence, it will also be beneficial for construction companies to have a physical location. If you want to renovate and expand your current space or you want to branch out, taking out a construction business loan is a wise move.
While it’s great to have an established online presence, it will also be beneficial for construction companies to have a physical location. If you want to renovate and expand your current space or you want to branch out, taking out a construction business loan is a wise move.
Ready to apply for Manufacturing Business Loan?