Manufacturing businesses are the largest revenue makers for most countries, with the US alone getting $2.3 trillion of proceeds from this industry. Sustaining such a sector, therefore, comes at a high cost, from material purchases to securing warehouse space. Not forgetting the payroll costs needed to keep thousands of employees working. The slightest financial setback could mean the loss of your company. Finding the right finance solution is crucial. A loan for a manufacturing company will ensure that you enjoy accelerated growth while also keeping your internal operations in check.
But first things first, what are manufacturing loans about? Here are 4 things to know before getting a manufacturing loan.
1. How Much Money Can I Get from Manufacturing Funding Opportunities?
Funding for manufacturing overhead ranges between $10M and $100M. This funding allows you to take care of everyday expenses to other essential needs like warehouse financing. Alternative lenders, such as LQD Finance, will first look into the areas you need the funding for and advance the amount based on your current needs. Our funding limits, up to 100M will ensure that you can get enough finances for all your manufacturing ventures.
2. What Do I Need to Qualify?
To qualify for manufacturing funding opportunities, you need a debt schedule and current aging A/R and A/P report. Additionally, have your three-year historical return and YTD financial reports. Unlike commercial and traditional loans that require numerous documentation, these few requirements allow you to shorten your entire loan process. So, you can rest assured that within 30 days, you can get your manufacturing loan.
3. Can Startups Apply for a Loan for a Manufacturing Company?
Even as a new company, you can get financing for your manufacturing overhead. You will, however, need to comply with the above-listed conditions to enjoy the benefits of a manufacturing loan.
4. In What Areas Can I Use My Manufacturing Loan?
Companies can use manufacturing loans for many purposes, including:
Acquisition of Equipment
Equipment in the manufacturing industry is subject to wear and tear and will likely become inefficient. It may be your robotics squeaking or your packaging machine occasionally requiring frequent service. Costs pertaining to such expenses can skyrocket and patched up work will only cost you more in the long run. To get such issues sorted, simply get a loan for your manufacturing funding opportunities. By getting such finances, you get to upscale your technological processes to increase efficiency in your production.
Succeeding in the manufacturing industry sometimes requires investing in bulk raw materials, failure to secure these materials can cause your operations to become delayed. But, purchasing items such as hardware and chemicals is not a cheap business. The solution is getting a manufacturing loan catering to large purchase orders. Doing this will allow you to buy as much material needed to obtain increased performance, with the added benefit of rapid growth.
Catering to Payroll Costs
The manufacturing industry currently relies on machine production in facilities, but employees are still needed to run significant operations. From servicing equipment to programming them, your workers still form an essential part of the manufacturing sector. Therefore, you need to cater to their wages, with occasional development programs needed to enhance their skills. If your current payroll cost cannot support these needs, a loan for a manufacturing company will guarantee that your workforce is catered to. You can also use your manufacturing overhead loan to hire more employees should operations increase suddenly.
Consolidating Commercial Loans
Getting multiple loans can be normal, but taking up too many funding sources can often be the start of troubles. If you have too many loan schedules, there is a high likelihood of defaulting on one or two of them. Keeping track of multiple loans is no small feat due to the varying interest rates and repayment periods in each. Avoid such issues by consolidating your loans into a single manufacturing loan to ease your loan management. This results in reduced loan costs as well as streamlined efficiency in your finances.
Refinancing Business Debt
Manufacturing businesses are faced with many financial needs every day. Because of this, cash can run out quickly and leave you with unfinished projects. Whether it is the rent that you need to sort out or other operational needs, refinancing your business debt can be a great way to free up additional working capital. Refinancing your debt can create more manageable payments with lower interest rates, while also providing some additional liquidity. Additional funding can allow you to get more work done rather than pushing away opportunities that will only come around once.
Why Use Alternative Lending Options
Let’s face it; traditional loan funding comes with increased turnaround times, and can often derail your chances of taking advantage of life-changing opportunities. Rather than opt for time-consuming processes that require a ton of documentation, alternative funding options are the go-to for fast and flexible solutions. Their tech engineered solutions provide businesses with a wide range of solutions from short term refinancing solutions to capital intensive funding. Startups can also benefit from the flexible financing sources that we provide, which is hard to come by from other loan providers. With LQD Business Finance, the approval period for a manufacturing loan only takes 30 days or less, after which you can start your projects.
II. Tailored Funding Solutions
Businesses are all unique, with each requiring tailor-made funding based on current needs and growth capacity. LQD Business Finance offers customized solutions for all types of business by utilizing automated underwriting designed to factor in an individual business capacity. The result is a streamlined process with loans of up to $100M.
As detailed above, manufacturing loans cater to a variety of aspects, from payroll to material purchase. Before settling for any type of manufacturing funding opportunities, first identify where your needs lie. Partnering with our team of finance experts at LQD Finance will allow you to accelerate your growth. We specialize in dynamic, fast, and transparent business loans with attention to manufacturing, wholesale, and retail industries. We will help you get the right loan for all of your funding needs. Get in touch with us today and apply for a manufacturing loan with LQD Business Finance.