When It Comes to Choosing the Best Manufacturing Financing Company, There Are Several Important Variables to Consider.
A business owner needs a manufacturing finance company that has the creativity and know-how to devise solutions that best fit the business’ needs. Sometimes the best answer to financing for manufacturers is not always the most comfortable or most straightforward solution.
Let’s Look at the Important Keys When Choosing a Financing Company to Fund Your Manufacturing Process:
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Your Specific Industry
Not all finance companies or banks know your industry. Even WIP Funding with our broad experience cannot be all things to all sectors. For a list of Industries, we have experience in please visit this article on Work In Process Financing.
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The Size of Your Credit Facility Needs
We specialize in facilities $100,000-$10,000,000 but can participate or club with other lenders on more extensive facilities. For smaller needs, we can you send you to one of our reciprocal relationships.
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Your Time in Business and Personal & Company’s Credit
Most banks and traditional lenders want 2-3 years of tax returns and the substantial personal credit of the owners. WIP Funding can be more flexible if we see you have deep industry experience.
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Your Customer Make-up and Selling Terms
WIP Funding is transaction-driven and deals “work backward.” What do we mean by that? All deals start with you having a creditworthy customer who will confirm the purchase. Are you producing and selling to a Fortune 1000 credit, or are you selling to a smaller company that is reselling or assembling for a larger company?
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The Complexity of Your Manufacturing Process
Do you need multiple parts from multiple sources with a vastly different lead and production times? The more complex the production cycle, the higher the risk which leads to a smaller lender pool.
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Outsourced, In-House, or Both?
This is part and parcel of the complex question. Is everything produced in-house, or is everything outsourced? Or does your finished product require a blend of the two? Complexity adds risk and additional costs. Be ready to describe every step of your production process.
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One Time or Long Term Funding Solution?
We typically don’t do one-off or spot deals. We want a long-term relationship of at least one year. However, we can refer you to other funding sources, so please contact us.
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The Experience of the Funding Source
Google, LinkedIn, Bing, and others are wonderful tools to research both prospects and funding sources. We welcome your due diligence and look forward to learning about you and your business, too.