Business Funding for Manufacturing & Distribution
The CNC machine that would double output costs $180,000. Raw materials for the big order need COD. Your best customer just requested Net 60 terms. Manufacturing and distribution run on capital intensity where equipment, inventory, and receivables timing determine competitive position.
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Understanding Manufacturing & Distribution Finance
Manufacturers and distributors face unique financing challenges driven by equipment intensity, inventory requirements, long payment cycles, and the capital gap between production costs and customer payment.
Capital Intensity Reality
Manufacturing requires significant equipment investment. A single CNC machine costs $50,000-$500,000. Production lines run into millions. Equipment is both your greatest asset and largest capital need.
Cash Conversion Cycle
Manufacturers often wait 90-120 days from raw material purchase to customer payment. This cash conversion cycle creates structural working capital requirements.
Receivables Challenge
B2B customers demand Net 30-60-90 terms. You ship product, then wait weeks or months for payment while funding the next order.
Supply Chain Pressure
Suppliers want payment upfront or COD. Customers want extended terms. You're squeezed in the middle funding the gap.
Why Manufacturing Finance is Different
Equipment intensity, long payment cycles, and capital requirements create unique financing needs.
Equipment Capital Requirements
Machinery costs hundreds of thousands. Upgrades are essential for competitiveness but strain cash reserves.
Receivables-to-Cash Gap
You ship product, invoice Net 30-60, and wait. Meanwhile, payroll, materials, and overhead continue.
Raw Material Timing
Big orders require material purchases now. Suppliers want payment upfront. Customer payment is months away.
Production Capacity Constraints
You have orders you could fill with more equipment or faster production. Capacity is the bottleneck.
Seasonal Demand Variation
Production ramps for peak seasons require inventory builds and equipment preparation funded before sales.
Major Customer Terms
Winning big accounts often means accepting Net 60-90 terms. Great for revenue, challenging for cash flow.
Financing Built for Manufacturers
Capital solutions structured around how manufacturing actually operates. We understand equipment lifecycles, receivables timing, inventory requirements, and the reality that production cannot wait for bank timelines.
Equipment Financing
CNC machines, production equipment, forklifts, and manufacturing assets. Terms matched to equipment useful life.
Invoice Factoring
Convert receivables to immediate cash. Ship product, submit invoice, get paid now instead of waiting 30-90 days.
Working Capital
Bridge the gap between production costs and customer payment. Fund materials, payroll, and operations.
Asset-Based Options
Your equipment and inventory have value. Asset-based lending unlocks capital from existing assets.
Production Scaling
Capital for equipment upgrades, additional shifts, or capacity expansion to capture larger orders.
Speed for Opportunities
Equipment deals expire. Large orders have deadlines. Get decisions fast enough to execute.
How Manufacturers Use Funding
Real scenarios where manufacturing financing enables operations and growth.
Production Equipment
CNC machines, production lines, manufacturing equipment. Finance over useful life.
Typical funding: $75K-$1M
Invoice Factoring
Convert Net 30-90 invoices to immediate cash. Fund operations while waiting for payment.
Typical funding: Based on AR
Raw Material Inventory
Purchase materials for large orders. Fund production costs before customer payment.
Typical funding: $50K-$500K
Facility Expansion
Additional warehouse space, production floor expansion, or new facility.
Typical funding: $200K-$2M
Fleet and Logistics
Delivery trucks, forklifts, material handling equipment for distribution.
Typical funding: $50K-$400K
Order Fulfillment
Working capital to fulfill large purchase orders from major customers.
Typical funding: $100K-$750K
Manufacturing Financing Options
Understanding the range of capital solutions for manufacturers.
| Feature | Alternative Lender | Bank Loan | Equipment Dealer |
|---|---|---|---|
| Approval Speed | 3-14 days | 45-90 days | 7-14 days |
| Manufacturing Understanding | High | Moderate | Equipment only |
| Working Capital | Available | Available | No |
| Equipment Financing | Available | Available | Primary focus |
| Invoice Factoring | Available | Limited | No |
| Amount Range | $50K-$2M | $250K+ | Equipment value |
| Cost | Moderate | Lowest | Moderate |
| Collateral Required | Varies | Usually | Equipment |
Manufacturing Qualification Basics
General guidelines for manufacturing financing. Every situation is evaluated individually.
Operating History
Established manufacturing or distribution operation.
1+ years for most products
Annual Revenue
Consistent revenue demonstrating operational viability.
$500,000+ annual revenue
Equipment Value
For equipment financing, the asset provides collateral value.
Equipment as collateral
Customer Base
For invoice factoring, creditworthy B2B customers.
Commercial customers
Business Bank Account
Business checking showing deposits and operations.
6+ months statements
Financial Statements
Larger amounts may require financial statements.
P&L and Balance Sheet
Manufacturing businesses with strong equipment, receivables, or inventory can leverage these assets for favorable financing terms.
Real Results
Precision Parts Manufacturing
CNC Manufacturing, Ohio
The Challenge
Precision Parts won a $1.2M contract with an automotive supplier requiring Net 60 payment terms. They needed $280,000 for materials and additional equipment to fulfill the order, but cash wouldn't arrive for 90+ days after production.
The Solution
We provided equipment financing for a new CNC machine ($140,000) and invoice factoring for their receivables to fund materials and production costs. Total facility of $350,000.
The Result
Contract fulfilled on time. Invoice factoring provided cash within 48 hours of shipping. The automotive contract led to $3.2M in additional orders over 18 months. Equipment paid for itself in 14 months.
“The big contract was exciting until we did the cash flow math. Net 60 on $1.2M meant funding $280K for three months. Factoring turned that receivable into immediate cash.”
Manufacturing & Distribution Snapshot
Key metrics shaping manufacturing financing decisions.
Why Manufacturers Choose Us
What sets manufacturing-focused financing apart.
Equipment Expertise
We understand manufacturing equipment value and can move quickly on equipment financing.
Receivables Solutions
Invoice factoring converts your Net 30-90 receivables to immediate working capital.
Cash Cycle Understanding
We know manufacturers fund production months before payment. Our solutions address this gap.
Asset-Based Approach
Your equipment, inventory, and receivables have value. We can leverage these assets.
Growth Capital
Equipment upgrades, capacity expansion, and production scaling for larger opportunities.
Order Fulfillment Support
Working capital to fulfill large purchase orders without straining cash flow.
Explore Your Options
Different financing products for different needs. Find the right solution for your business goals.
Equipment Financing
Finance CNC machines, production equipment, forklifts, and manufacturing assets. Terms matched to equipment useful life with equipment as collateral.
Invoice Financing
Convert Net 30-90 invoices to immediate cash. Ship product, submit invoice, get paid now instead of waiting for customer payment.
Working Capital Loans
Fund raw materials, payroll, and production costs. Bridge the gap between production expenses and customer payment.
Business Line of Credit
Pre-approved capital you can draw as needs arise. Perfect for variable material purchases and operational needs.
SBA Manufacturing Loans
Government-backed financing with the best rates. Ideal for major equipment, facility expansion, or acquisition.
Revenue-Based Financing
Payments tied to your revenue. Busy production periods pay more, slower periods adjust automatically.