Manufacturing Business Funding

Equipment financing, invoice factoring, and SBA loans for manufacturers. Get matched with manufacturing lenders in minutes and keep production moving.

Manufacturers tie up capital in equipment, raw materials, and work-in-process long before invoices are paid. Equipment financing and SBA loans fund capacity, while invoice factoring converts large purchase orders into the materials capital needed to fulfill them.

What Manufacturing businesses fund

  • Equipment upgrades
  • Raw materials
  • Working capital
  • Facility expansion

Seasonal funding patterns

Purchase order spikes require rapid materials capital before production cycles begin.

Recommended funding for Manufacturing businesses

  • Equipment Financing — Equipment financing uses the purchased equipment as collateral, making it one of the most accessible forms of business funding for asset-heavy industries.
  • SBA Loan — SBA 7(a) and 504 loans are government-backed programs offering some of the lowest rates and longest terms available for qualifying small businesses.
  • Invoice Factoring — Invoice factoring converts outstanding B2B invoices into immediate working capital — the factor advances a percentage and collects from your customers.

Frequently asked questions

What types of funding are best for manufacturing companies?

Equipment financing for machinery and production equipment, invoice factoring or asset-based lending on accounts receivable, and SBA loans for long-term expansion are all common structures for manufacturers. The right mix depends on whether your primary need is acquiring equipment, bridging payment gaps, or funding growth initiatives.

Can I finance CNC machines, presses, or other industrial equipment?

Yes. Industrial equipment financing is widely available for manufacturing businesses. Lenders will typically advance 80–100% of the equipment value with terms of 36–84 months. The equipment serves as collateral, making qualification more accessible than unsecured loans. Approvals can occur in 2–5 business days for established manufacturers.

What is asset-based lending and is it right for manufacturers?

Asset-based lending (ABL) uses your accounts receivable, inventory, or equipment as collateral for a revolving line of credit. It is a common structure for manufacturers with substantial B2B receivables. The credit line grows as your receivables grow, giving you a financing facility that scales with your business. ABL is particularly useful for manufacturers with large commercial customers on long payment terms.

Can invoice factoring work for manufacturer-to-distributor invoices?

Yes. B2B invoices to creditworthy distributors, wholesalers, or retailers are ideal for factoring. The factor advances 80–92% of the invoice face value immediately and remits the balance minus fees when the distributor pays. This eliminates the 30–90 day wait and frees up cash to fund the next production run.

Are SBA loans available for manufacturing facility expansion?

SBA 7(a) and SBA 504 loans are commonly used for manufacturing facility expansion, commercial real estate acquisition, and large equipment purchases. The SBA 504 program in particular is structured for long-term fixed assets and offers competitive fixed rates. These programs require more documentation and a longer approval timeline but offer lower rates than most alternative lenders.

How can a manufacturer manage cash flow between purchase orders and payment?

Purchase order (PO) financing is an option for manufacturers who receive large orders but lack the capital to fund the production run. The lender advances funds to pay suppliers based on a confirmed purchase order from a creditworthy buyer. Once the order ships and an invoice is generated, the advance is typically repaid via factoring or directly from the buyer's payment.