Business funding for manufacturing companies
Reviewed by Turan Zeynal, Managing Partner, Outset Funding Partners ·
Small and mid-size manufacturers can access $50k–$5M in equipment financing, working capital, purchase order (PO) financing, and SBA loans. Because manufacturers carry hard collateral (equipment, inventory, receivables), they have more funding options than almost any other industry — and typically get some of the best pricing.
Quick facts
- Typical amount
- $50k – $5M+
- Equipment APR
- 6% – 15%
- Working capital speed
- 24 – 72 hours
- SBA 7(a)
- Up to $5M, 10-year terms
- Min revenue
- $25,000/month
- Best fit
- Equipment, LOC, SBA, PO financing
The 60-second answer
Manufacturing has a longer cash-conversion cycle than almost any other industry. You buy raw materials, run production, ship, invoice — and get paid 30, 60, sometimes 90 days later. That gap is exactly what business funding exists to bridge.
Because manufacturers carry real collateral — CNC machines, injection molders, presses, inventory, and receivables — you have access to the widest set of products in small business: equipment financing, working capital, PO financing, factoring, revolving lines of credit, and SBA loans that can cover growth or acquisitions.
Pros and cons
- ✓Equipment financing terms match useful life (5–10 years)
- ✓PO financing lets you fulfill orders larger than your cash allows
- ✓Business LOC handles material buys and payroll between shipments
- ✓SBA 7(a) for expansion, acquisition, or refinancing high-cost debt
- ✓Collateral on equipment lowers pricing meaningfully
- ×Best pricing requires full financials — tax returns, P&L, balance sheet
- ×SBA and larger facilities can take 30–90 days to close
- ×PO financing requires creditworthy end-customers
Who qualifies
- •Metal fab, plastics, food and beverage, packaging, textiles, custom manufacturing
- •$25,000+ in monthly revenue
- •12+ months operating (2+ years for best SBA pricing)
- •US-based
- •620+ FICO for best pricing (options at 550+)
Frequently asked questions
Can I finance a used CNC or injection molder?
Yes. Used equipment up to 10 years old is routinely financed with equipment loans or capital leases. Newer equipment gets better terms and higher LTV.
What is PO financing and when should I use it?
PO financing pays your suppliers directly for materials tied to a specific purchase order, so you can fulfill a large order without having the cash upfront. It's ideal when you land a contract bigger than your working capital allows.
How much can I borrow with an SBA 7(a) as a manufacturer?
Up to $5M for equipment, real estate, working capital, or acquisitions. Manufacturers often get 10-year terms, with real-estate deals stretching to 25 years.
Can I refinance high-cost MCAs I already have?
Yes — this is one of the most common asks from manufacturers. A term loan, SBA loan, or LOC can consolidate multiple MCAs into a single, meaningfully cheaper payment when you qualify.
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