Factoring for Manufacturers – Manufacturers need working capital to operate efficiently. Production will require the input of raw materials and overhead. Paying for these is easy if you have access to a high limit line of credit. Unfortunately, if your business does not qualify for that type of financing, you must seek alternatives.
Should your business have a strong customer base, consider accounts receivable factoring. Conveniently, factoring allows you to convert your outstanding accounts receivable into cash, providing vital cash flow to your business. You can expect to receive anywhere form 75% to 95% against your invoices. Often, no personal guaranty will be required. Financing is available for businesses which need from $10k to $10 Million in funding.
You can choose to factor a single invoice (spot) factoring, or all of your invoices. While most banks have stringent requirement regarding personal net worth or personal credit score, most factoring companies focus on the quality of your accounts receivable instead of these other criteria. Some factors will even fund businesses where the owners have exceptionally poor credit or even personal character issues such as past arrests.
Factoring for Manufacturers: Is Spot Factoring right for your business?
There are lots of other resources available to manufacturers listed at the National Association of Manufacturers.
To learn if factoring is the right choice for your manufacturing business, contact us today:
203-200-0594
