What are Manufacturing Business Loans and Types of Manufacturing Business Loans?
Manufacturing business loans provide financial support for companies to propel their growth initiatives. These loans are specifically designed to manufacturer requirements and challenges faced by manufacturers, offering tailored solutions that align with their operational requirements. Mainly, companies provide five types of loans to manufacturers.
1. Equipment Financing
In a manufacturing business, the main part is the machinery for better quality production efficiency, maintaining a competitive edge, and reducing manpower. Equipment financing provides loans to manufacturers to purchase upgrade machinery, tools, and technology without investing their working capital.
2. Working Capital Loans
Cash flow important part of the smooth maintenance and growth of any manufacturing business. Working capital loans provide the necessary funds to cover day-to-day expenses, purchase inventory, and employees’ salaries, and grab new opportunities.
3. Expansion Financing
As your manufacturing business expands, you may be required to invest in additional raw materials and warehouse space or even open new manufacturing units. Expansion financing loans provide the fund required to support your expansion plans and to reach a new marketplace.
4. Inventory Financing
For manufacturers, maintaining enough inventory levels and machinery is necessary to fulfill customers’ demands. Inventory financing loans provide the required funds to purchase raw materials, ensuring the right production and timely order fulfillment.
5. Research and Development (R&D) Loan
Research and development are necessary for the manufacturer to reach out next level and stay ahead of competitors. Research and development loans provide funds for the adopt new technologies, to improve production processes, and to improve existing products.
Manufacturing Business Loans Offering Companies
1. Fundbox
Fundbox is an online lender that offers loans to small and medium-sized businesses, including manufacturing businesses. Fundbox provides lines of credit up to $1000 – $150,000 with repayment terms of up to 12-24 weeks. The best part is Fundbox provides funds as soon as the next business day.
Terms For Fundbox Business Loan
- Loan Amount- $1000 to $150,000.
- Repayment Term – 12 to 24 weeks.
- Interest Rate- For 12 weeks 4.66%, and for 24 weeks 8.99%.
- Repayment Schedule – Weekly.
- Application Fees – No Application Fees.
Conditions
- Business Name, Type, and Industry.
- Business Tax Id
- Business Bank Account
- At Least 3 Months of Bank Statement
- Driving License or Passport
- Credit Score 600+
- Annual Revenue of $100,000.
- 3 to 6 Months in Business.
- Must apply from a business bank account, Fundbox will connect to your commercial bank and check cash flow, transactions, and other statements.
2. BlueVine
BlueVine is a financial technology company that offers financing support to manufacturing businesses. BlueVine offers lines of credit, up to $6,000 to $250,000 with 6 or 12 months of repayment term. BlueVine provides loans within one to three days.
Trems For BlueVine Business Loan
- Loan Amount- $6,000 to $250,000.
- Repayment Term – 6 or 12 months.
- Interest Rate- 20% to 50% APR.
- Repayment Schedule – Weekly or Monthly.
Conditions
- Credit Score 625+.
- Annual Revenue of $480,000+.
- 2+ years in Business.
- Business Tax Id.
3. National Funding
National Funding is a lender that provides financial support to small and medium-sized businesses including those in the manufacturing sector. They offer term loans of up to $10,000 to $400,000 with repayment terms of up to 4 to 24 months. They provide for equipment financing and leasing up to $150,000 with 24 to 60 months repayment terms. National Funding is available to your fund within 24 hours.
Trems For National Funding Short-term loan
- Loan Amount- $5,000 to $400,000.
- Repayment Term – 4 to 24 months.
- Interest Rate- Estimated starts at 1.1 for manufacturers with strong credit.
- Repayment Schedule – Daily or weekly.
Trems For Equipment Financing and Leasing
- Loan Amount- $150,000.
- Repayment Term – 24 to 60 months.
- Interest Rate- Estimated starts at 1.1 for manufacturers with strong credit.
- Repayment Schedule – Monthly.
Conditions
- Credit Score 600+
- Annual Revenue of $250,000 +.
- 6+ months in Business.
- Business Tax Id.
4. OnDeck
OnDeck is an online lender that provides financing solutions to small businesses, including those in the manufacturing sector. They offer term loans of up to $5,000 to $250,000 with repayment terms of up to two years. OnDeck gives you funds as soon as the same day.
Terms For OnDeck Loan
- Loan Amount- $5,000 to $250,000
- Repayment Term – 24 months.
- Interest Rate- 29.90% APR.
- Repayment Schedule – Daily or weekly.
Conditions
- Credit Score 625+.
- Annual Revenue of $100,000.
- Business Tax Id.
- 1 year in Business.
- At Least 3 Months of Bank Statement.
- Must apply from a business bank account, OnDeck will connect to your commercial bank and check cash flow, transactions, and other statements.
Conclusion
These loans can help you to grow your manufacturing business. Choose a loan that is reliable and beneficial for your business. Before selecting a loan, you should use a loan calculator.