Manufacturing Company Business Loans
Shield Funding has been helping manufacturing companies secure the funds they need to expand and succeed for a decade. We understand your capital needs, and we can help.
New products require new equipment. New product lines require new markets. Increased sales require a larger sales force. They’re all related—but kickstarting the process can be an expensive proposition.
Whether you need help with cash flow problems for keeping your business running or you’re looking to expand into a new phase, we have the loan products that will help you do it. We can help you secure a manufacturing business loan in as fast as the same day. Get started online now! Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.
What Do I Need to Qualify?
Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.
Small Business Loans for Manufacturing Companies
Whether you’re developing new products, upgrading your equipment, or need more personnel, access to funds with a small business loan may be your answer.
Are your competitors offering something you don’t? Are you ready to expand into global markets? Can you increase profit margins by adding more advanced equipment? With loan amounts up to $1,000,000 from Shield Funding, you can grow your manufacturing business and compete with the top companies in your industry.
Terms range from 2–36 months, so your repayment amount and schedule will fit your growth plan and cash flow. You will need at least $8,000 in monthly revenues to qualify. Depending on your business circumstances, rates vary from 5–45%.
Bad Credit Small Business Loans for Manufacturing Companies
Perhaps running your manufacturing company hasn’t always been smooth sailing. It’s not uncommon to have some credit mishaps in your past—but you shouldn’t be permanently dinged for these issues when applying for loans. Unfortunately, banks don’t look past these marks on your credit history when evaluating a potential loan.
If you’ve been in business for two months and your credit score is at least 500, Shield Funding’s bad credit small business loan may be what you need. Growing your business with a loan may help you put these past credit issued behind you.
Most bad credit business loan terms range from 2–18 months. Longer terms may be available if you meet additional qualifications. Rates range from 12–45%, which are notably better than what you’d get from a bank if you could convince them to give you a loan with your credit.
Equipment Financing for Manufacturing Companies
Purchasing manufacturing equipment helps increase your profit margin and makes your business more competitive. But new equipment can run to tens or hundreds of thousands of dollars.
And if any of your equipment breaks, you need to get it fixed immediately. That can also put a dent in your bottom line. But you can’t afford downtime in your manufacturing process.
Equipment financing, unfortunately, can be a bit of a mixed bag. In many cases, you’ll need to come up with a down payment of 20%—so a $50,000 piece of equipment will still cost you $10,000 up front. Even if it’s financed. But equipment loans do generally come with lower interest rates, which makes up for their narrower allowable uses.
If you need a new piece of equipment or to repair an existing one, give us a call. We can help you get the loan you need without a down payment.
Business Line of Credit for Manufacturing Companies
Manufacturing companies face many situations in which they need fast access to cash: unexpected equipment repairs, bulk deals on raw materials, increasing production levels, and more. Failing to take advantage of these opportunities due to limited cash resources is disappointing to any business owner.
A business line of credit helps. Similar to a credit card, a business line of credit enables you to purchase items and pay expenses up to a set limit. The lender charges interest on the outstanding balance, and you make regular payments.
Shield Funding offers lines of credit up to $250,000 with rates between 5% and 10%. That’s a lot better than you’ll get on any corporate credit card. To qualify, you must have a credit score of at least 650 and bring in a minimum of $10,000 per month. If you’ve also been in business for at least six months, consider a business line of credit to meet your regular cash flow needs.
Small Business Loans for Women
Women are significantly less likely to start manufacturing companies than men. But that doesn’t mean they shouldn’t have the same opportunities.
If you run a woman-owned manufacturing business, Shield Funding has the right business loan option for you. With at least two months in business and a minimum revenue of $8,000, you can borrow up to $1,000,000 in cash to build your business.
As long as you have a minimum credit score of 500, you may qualify for a business loan for women with rates ranging from 12-45%. Terms between 2 and 36 months can help manage scheduled repayment amounts to meet anyone’s cash flow and budget.
So how might you use that cash? Here are some ways a business loan might help your manufacturing business:
Materials and Supplies
Raw materials and other supplies are your biggest expense. Although they’re included in the cost of goods sold, it’s still an upfront cost you incur before the revenue rolls in.
Profit margins for most manufacturers range from 25–35%. Some larger items may have even smaller profit margins as low as 5% or 10%. Regardless, your goal is to maximize this number. Picking the right raw materials is important for producing quality products for your customers.
Buying in bulk can save a considerable amount of money on non-perishable goods. If done right, such a deal will have a positive impact on your profit margins without skimping in other areas. That requires enough cash on hand to take advantage of good prices.
You’ll also want to keep a stock of raw materials at hand so you can respond to new demands from customers. That’s another factor you’ll need to balance against your costs. Managing your materials and supplies can be difficult, but it results in providing the best products at the lowest costs.
Your manufacturing business probably relies on many different types of equipment. New hardware is expensive. But, so is repairing old, outdated equipment. These costs are significant contributors to your overhead.
To stay competitive, you need to invest in equipment. You might be able to increase your productivity with new machinery. Or expand into new product markets by investing in new types of equipment. You might even need to buy more of the same equipment as demand increases.
And you’ll need to plan for repairs, too. Can you keep up with demand without one or more of your production machines? If not, you’ll need cash on hand to make repairs when they’re necessary. If you don’t have that cash on hand, it’s worth taking a short-term loan.
Using an alternative lender is especially valuable in these cases, as you can often get loans very quickly. Sometimes within a couple days. And that can mean a difference of thousands in what you earn.
Distribution and Shipping
You need some way to get your products to your customers. You’ll need end-user packaging, shipping boxes, and labels.
How you ship your products may depend on the size of your company. If you already have your own distribution network, you may need to contract more trucks and drivers. You may also need more warehouse space as you grow. Warehouse personnel to store your products and load vehicles also cost money.
Even if you decide to contract with a distributor, you may have to pay a lot of money to get your products where they need to go. Distribution and shipping expenses can range from 5–10% of your total sales. Depending on your industry, these rates could be even higher.
But there’s no getting around it: to make money, you have to ship your products to your customers. If you need to get some financing to help make that happen, it’s absolutely worth it.
Advertising & Marketing
Your products won’t sell themselves. You need great branding, a marketing plan, and advertising to make your manufacturing company successful.
Branding helps you stand out from your competition, which you’ll need unless you’re the only option in your industry (which is unlikely). Hiring a branding agency is an expensive proposition, with big names costing $150 per hour or more.
And you’ll need marketing, too. Which means you’ll either need an agency or someone in house. Marketing materials, whether print or online, require money, too. Personnel. Server space. Ad dollars (for TV, radio, print, online, and any other methods you can come up with).
If you aren’t selling direct to consumers, trade shows and other industry events may be your primary focus. Reserving floor space, travel, shipping products, and printing marketing materials can be quite the expense. On the plus side, your presence at the right shows may bring in more than enough new clients to cover these costs.
These methods will pay off. But you need cash upfront to make them happen.
If you want additional information or would like to chat with us about how we can help you grow your business, give us a call!