Textile Finance is primarily for manufacturers and distributors of textile related products that require working capital to buy raw materials, purchase components or cover day-to-day operating expenses. Textile funding proceeds can be used to open letters of credit with suppliers, fund payroll, cover open credit terms with customers and more. Like apparel finance, textile finance is offered in both recourse and non-recourse variations.
The most common types of textile funding are:
- Asset Based Lending
- Inventory Finance
- Production Finance
- Invoice Factoring
- SBA Loans
The type of textile finance that is available to a company will depend on how the production of the goods is handled. Companies that manufacturer goods in-house may take advantage of Asset Based Lending, Production Finance or SBA Loans while companies that import finished product are more likely to utilize Inventory Finance or Invoice Factoring.
Both mature and new start companies may take advantage of textile finance, however, Asset Based Lending and Production Finance are reserved for companies with good operating experience. Newer companies are likely to benefit from Inventory Finance and Invoice Factoring
While there are several forms of Textile 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 now at 855-424-2958 to discuss your textiles finance options! Or fax us at (855) 450-0885.
Customized Financing Options
Asset Based Lending
Revolving lines of credit up to $20,000,000
Accounts Receivable Factoring
No minimums, up to $20,000,000
Secondary lines of credit for ABL or Factoring
Equipment & inventory facilities
Great for staffing & temp agencies