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Manufacturing Finance

Companies that manufacture goods require working capital to purchase raw materials, components, pay for labor and cover operating expenses. There are several forms of manufacturing finance available to companies, each depending on the manufacturers working capital needs.

The most common types of manufacturing funding are:

The type of manufacturing finance a company will need will usually depend on the amount of credit they have with vendors. Manufacturers that do not have credit terms with vendors or have limited credit lines can benefit from supply chain finance and production finance.

Manufacturers that have established credit lines with vendors typically benefit from asset based lending or factoring as they are able to cover the cost of raw materials and components using vendor credit and rely on asset based lending or factoring to cover the credit they extend to their customers.

While there are several forms of manufacturing finance available, each has its positives and negatives. In many cases more than one form of financing can be used to generate capital. Choosing the right working capital facility with the right lender can make all the difference.

Call us today at 561-299-1609 to discuss your manufacturing finance options.

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