Manufacturing companies come in all shapes and sizes, from textile companies and tool and die shops to automotive suppliers. While it goes without saying that manufacturing is a diverse industry, most companies are faced with a common challenge: they need business financing to grow.
Manufacturing companies encounter working capital challenges because supplier and production expenses frequently require payment before goods are sold to their customers. Upfront costs for raw materials, labor, equipment leases, and rent can add up quickly, and the revenues to cover these expenses may come in slowly.
Fast, Flexible Working Capital Solutions
Manufacturing enterprises need cash to bridge the gap between paying for producing goods and receiving payment when those products are sold. Even when a manufacturer makes a sale, they typically do not get paid for the purchase immediately. Extended payment terms and slow-paying customers can result in a cash flow crunch.
Summit Financial Resources understands that manufacturing is a working capital-intensive business with special financing needs. We are experts in creating working capital solutions to help manufacturers run their operations, service their clients, and take advantage of opportunities for long-term growth.
Apply online and get started today >
Our asset-based lending programs, including inventory financing, equipment financing, and invoice factoring, allow manufacturers to receive funds before their customers have made payment. We can finance your manufacturing firm quickly with a variety of options to help you get cash to replenish inventory or buy equipment, meet payroll, and cover operating expenses, so you can generate more sales and profits.
Your Partner, Every Step of the Way
We see the possibilities in our clients’ businesses and focus on helping them through the transitions that are a natural part of the growth process. Our manufacturing clients are typically small companies that make products for which there is increasing demand, and they have plenty of orders on the books. We can provide financing at every step of the manufacturing process, starting with capital for purchasing inventory to fill current orders. When the finished product is shipped out, we can turn those receivables into cash to help companies purchase more raw materials to produce more inventory, ensuring continued growth.
For example, a 10-year-old paper processor experienced several years of deteriorating finances and their bank froze their credit and asked them to exit. The company had $3 million in accounts receivable, inventory, and an M&E term loan and had numerous orders in hand. A management change and bankruptcy filing left them with limited financing options.
Summit Financial Resources created a credit facility that accesses capital from the company’s accounts receivable, inventory, and equipment assets. We evaluated, audited, and appraised the company’s financials and inventory within tight timeframes, allowing the firm to realize additional incentives from the bank. We also stretched on advance rates and inventory financing to create enough availability to fulfill the bank’s obligations. The financing structure and the speed with which we underwrote the deal allowed the company to purchase inventory, repair equipment, and continue to fill orders.
Summit Financial Resources knows that working capital is among the most common business challenges for manufacturing companies. Business owners know they can benefit from our flexible financing products to keep their cash flow moving and keep them ahead of the competition.
Working Capital Financing is a few clicks away.
Apply online and get started today >
Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.