Term Loans for Manufacturing
Fixed-rate financing for major manufacturing investments. Predictable monthly payments make budgeting easy, whether you are expanding capacity, adding production lines, acquiring equipment, or purchasing facilities.
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Term Loans for Major Manufacturing Investments
Term loans provide predictable financing for significant manufacturing investments. Fixed rates and payments make planning easier while funding expansion, equipment, facilities, or acquisition needs.
Expansion Capital Needs
Manufacturing expansion typically requires $200,000 to $2,000,000 for facility buildout, equipment, and working capital.
Production Line Costs
Adding a complete production line costs $150,000 to $1,000,000 depending on industry and automation level.
Faster Than SBA
While SBA offers better rates, term loans fund in days versus SBA 60-90 day timelines. Speed matters for time-sensitive opportunities.
Acquisition Financing
Acquiring competitors, suppliers, or complementary manufacturers requires substantial capital with predictable repayment.
When Term Loans Make Sense for Manufacturing
Major manufacturing investments benefit from structured, predictable financing.
Major Investments Need Capital
New production lines, facility expansion, or competitor acquisition requires substantial upfront investment.
Variable Payments Are Difficult
Manufacturing planning requires predictability. Your financing should match that need with fixed payments.
Banks Move Too Slowly
Traditional bank loans take months. Equipment deals and facility opportunities will not wait.
SBA Timeline Constraints
SBA offers great rates but 60-90 day timelines. Some opportunities require faster funding.
Capacity Constraints
You have orders but cannot produce more without equipment or space. Growth is limited by capacity.
Competitive Pressure
Competitors are expanding. Standing still means falling behind in capability and capacity.
Manufacturing Term Loan Process
Faster than banks with predictable terms and payments.
Application
Complete application with company information, financials, and investment details.
30 minutes
Underwriting
We evaluate your manufacturing operation, revenue, and investment plan.
2-5 days
Loan Offer
Receive your term loan offer with clear rate, term, and payment information.
3-7 days
Funding
Accept your offer, complete documentation, and receive funds.
1-3 days
Predictable Financing for Major Investments
Term loans provide lump sum financing with fixed monthly payments over 1-7 years. Perfect for facility expansion, major equipment purchases, production line additions, or acquisition where you need substantial capital with predictable repayment.
Fixed Monthly Payments
Same payment every month regardless of production volume. Easy cost planning.
Large Funding Amounts
Get the capital needed for facility expansion, new lines, or acquisition. $50K to $2M available.
Longer Terms
Spread payments over 1-7 years to manage cash flow. Longer terms mean lower monthly payments.
Build Business Credit
On-time payments strengthen your manufacturing business credit profile.
Faster Than Banks
Get approved in days, not months. Seize opportunities quickly.
Clear Total Cost
Know your total payback amount upfront. No variable rate surprises.
Manufacturing Term Loan Applications
Common uses for manufacturing business term loans.
Facility Expansion
Add production space, warehouse capacity, or expand existing facilities.
Typical funding: $100K-$1M
Production Line Addition
Add new production capabilities, product lines, or manufacturing capacity.
Typical funding: $150K-$1M
Major Equipment Package
Multiple equipment pieces or complete production cell purchases.
Typical funding: $100K-$500K
Company Acquisition
Acquire competitors, suppliers, or complementary manufacturers.
Typical funding: $200K-$2M
Technology Upgrade
Major technology investments including automation and digital systems.
Typical funding: $75K-$500K
Working Capital Injection
Substantial working capital for major growth or seasonal ramp-up.
Typical funding: $50K-$500K
Term Loans vs. Other Manufacturing Financing
Compare term loans to alternative manufacturing financing options.
| Feature | Term Loan | SBA Loan | Working Capital |
|---|---|---|---|
| Funding Amount | $50K-$2M | $100K-$5M | $25K-$1M |
| Interest Rate | 10-18% | Prime+2-3% | 15-30% |
| Term Length | 1-7 years | 10-25 years | 6-24 months |
| Time to Fund | 5-10 days | 60-90 days | 1-3 days |
| Documentation | Moderate | Extensive | Light |
| Payment Structure | Fixed monthly | Fixed monthly | Variable |
| Credit Requirements | 600+ | 680+ | 550+ |
| Best For | Mid-speed, major needs | Best rates | Quick access |
Manufacturing Term Loan Requirements
Requirements for manufacturing business term loans.
Established Manufacturer
Operating manufacturing company with demonstrated revenue history.
2+ years in operation
Annual Revenue
Demonstrated annual revenue to support loan payments.
$500,000+ annual revenue
Owner Credit
Personal credit of business owners considered in underwriting.
600+ credit score
Financial Statements
Business financial statements showing manufacturing performance.
2 years financials
Tax Returns
Business and personal tax returns for underwriting review.
2 years tax returns
Investment Purpose
Clear purpose for loan funds including quotes or purchase agreements.
Documented purpose
Manufacturers with strong customer contracts, purchase orders, or demonstrated growth trajectory may qualify with shorter operating history.
Real Results
Midwest Plastics Inc.
Injection Molding, Illinois
The Challenge
The company needed to add a second injection molding line ($425,000) to handle growing automotive customer demand. SBA timeline was 90 days but the customer needed increased capacity in 60 days or would seek alternative suppliers.
The Solution
Business term loan for $450,000 at 13.9% over 5 years. Monthly payment: $10,400. Funded within 12 days.
The Result
New injection molding line installed within 45 days. Customer capacity commitment met. The additional line generated $85,000 monthly in new revenue. Plan to refinance with SBA at better rates after establishing track record with new equipment.
“SBA would have saved us money long-term, but we would have lost the customer. The term loan let us meet the deadline. The new line generates enough margin that we can refinance later and still come out ahead versus losing the business.”
Manufacturing Term Loan Data
Statistics on business term loans for manufacturers.
Term Loan Advantages for Manufacturers
Why term loans work for major manufacturing investments.
Speed for Opportunities
Close equipment deals and facility opportunities quickly. Days versus months for banks.
Predictable Budgeting
Fixed payments make production cost planning and budgeting straightforward.
Substantial Capital
Access enough capital for major investments like expansion or acquisition.
Bridge to SBA
Use term loans for speed, then refinance with SBA for better rates once project is complete.
Clear Total Cost
Know exactly what you will pay over the loan term. No variable rate surprises.
Credit Building
Successful repayment builds business credit for future financing needs.