Working capital improves cash flow for manufacturing companies
Most manufacturing companies deal with two areas of operations where financial crunches create problems. The first one, meeting payroll, typically takes place on a weekly basis. The second is the problem of paying your vendors — the source of the materials you need to produce your product(s) — who expect payment within 30 days.
Manufacturing Challenges
Growing companies like yours often face challenges in these areas:
- Buying supplies and raw materials.
- Manufacturing.
- Delivering products to your customers.
- Waiting to get paid — longer than necessary.
This process can take 90 days depending on the complexity of your manufacturing cycle.
Banks won't fund working capital
Banks fund machinery, real estate, buildings and, to a lesser degree, inventory that manufacturing companies often have. However, banks won't fund working capital — the money you need to pay your staff and your vendors — while you wait for customers to pay you.
Unless you use your hard assets as collateral, it'll be tough to convince a bank to fund your working capital needs.
Successful manufacturing clients receiving financing help from us come from all segments of the supply chain including machine parts, product manufacturing, repair services, material processing, importing and subcontract manufacturing. Chances are good that we've worked with a company like yours.
Before you decide, make sure you ask questions. If you want to find out more, contact us now for a free, no obligation conversation.
