Manufacturing
Business Loans

Faster, easier small business financing with one simple application—no bank needed.

Applying is free and won’t impact your credit.

Reviews from manufacturing business owners.

Lendio knows manufacturing small businesses.

Whether you’re looking to purchase heavy machinery or expand your manufacturing business, manufacturing loans can make your trip from point A to point B a lot easier and pain-free. It only takes 15 minutes to apply, and you can get fully funded in as little as 24 hours.

In today’s economy, operating costs for manufacturers are only going up. Business owners who can see beyond the curve are purchasing in bulk to lock in prices before they rise further. Business loans for manufacturers can be used to purchase materials up front to combat increasing inflation.

At Lendio, we offer faster, easier financing with only a single application, because we know running your business is where you need to spend your time.

Why Lendio?

A short application process

Complete your Lendio application in just 15 minutes so you can move on with your day. Funding times are also fast, once approved, with many borrowers receiving money in the bank within 24 hours of approval.

Ongoing professional support

Enjoy personalized support with a dedicated funding manager who understands your manufacturing business.

An extended lender network

With over 75 lenders in the Lendio network, you’ll find the right financing option for your manufacturing loan with just a single application.

How our loan matching process works.

STEP
1

Fill out our simple application.

Answer just a few questions about your business to see which lending products you qualify for. We’ve partnered with over 75 lenders, allowing us to find the best option or your business.

STEP
2

We’ll connect you with a funding specialist.

One of our funding specialists will reach out to you to get to know your business better. Since every business is unique, we want to make sure we find the loan type that’s perfect for your needs.

STEP
3

Compare loan offers.

Compare different offers curated for your business. Select the capital amount and rate that will help take your business to the next level.

STEP
4

Get funded.

We work with lenders that can fund you fast. Once you’re approved, you’ll be able to access your capital in as little as 24 hours.

Types of business loans for the manufacturing industry.

Asset- or revenue-based financing

With asset-based financing (also called invoice factoring), a funder purchases an invoice from the borrower at a discounted rate. The business then pays back the funder as the business collects on the invoice. Revenue-based financing gives you an advance on expected future revenue rather than an invoice.

TERM LENGTH

1-15 months
MAX LOAN AMOUNT

$1 million (RBF); $50 million (factoring)

Debt financing

Debt financing is more of a “traditional” business loan, as borrowers receive the loan amount in a lump sum and make fixed monthly payments until the balance is repaid in full. Small business owners can choose either a term loan or an SBA loan. SBA loans typically have lower interest rates and higher borrowing limits, but can be more difficult to qualify for.

TERM LENGTH

6 months-25 years
MAX LOAN AMOUNT

$5 million

Line of credit

A business line of credit is very similar to a credit card, but there is a set draw period, the interest rates are lower, and the credit limits are much higher. Unlike other business loans, a line of credit can be used for anything and is useful for businesses in need of more working capital.

TERM LENGTH

6-24 months
MAX LOAN AMOUNT

Up to $250,000

Pros and cons of manufacturing business loans.

Business loans, like any financial decision, carry both rewards and risks. They can propel you towards growth and innovation or, if not managed carefully, may lead to financial strain. Be sure to weigh the potential benefits against the possible pitfalls of manufacturing business loans as you consider this financing option for your manufacturing enterprise.

ProsCons
Liquidity: Loans provide immediate access to funds, enabling you to cover costs or make investments without depleting your cash reserves.Debt: Borrowing automatically means incurring debt, which will need to be repaid with interest over time.
Growth Potential: Loans can facilitate business expansion, hiring, and upgrades to equipment, potentially leading to increased revenue.Collateral Risk: If your loan is secured, there’s a risk of losing your collateral (such as property or equipment) if you can’t repay the debt.
Budget Planning: Loans often have fixed repayment schedules, making it easier to plan your budget.Impact on Credit Score: Failure to repay the loan can negatively impact your business credit score.
Innovation: Access to funding can facilitate research and development, leading to product innovation and a competitive edge.Restrictions: Some loans come with restrictions on how you can use the funds, limiting your financial flexibility.

Ways to use a manufacturing business loan.

Purchase and replace equipment

Up-to-date equipment and tools can help increase your manufacturing business’ productivity and efficiency. With a business loan or equipment financing, you can purchase or upgrade the equipment that your business needs.

Invest in advanced technology

Adopting high-tech solutions enhances your operations and gives you a competitive edge. With a manufacturing business loan, you could invest in inventory and customer managements software, new computer systems, and more.

Pay regular expenses

You’ll have to keep up on routine expenses like payroll, monthly rent, and more. Use a manufacturing business loan to help cover these expenses while keeping on top of other tasks in your business.

Hiring and training

You will need to hire and train specialized staff to keep your manufacturing business running smoothly. Manufacturing business loans can provide the funds needed to hire new employees or train existing ones to keep up with evolving market needs.

Additional resources for manufacturing businesses.

FAQs

A manufacturing business loan provides borrowers with the funds they need to purchase necessary equipment or heavy machinery, grow their business, or pay for general operations. While there are no loan products specific to manufacturing, there are multiple business loan products available to manufacturing companies.

  

To apply for manufacturing business loans through the Lendio platform, companies need to have existed for at least six months and make $8,000 or more per month. Business owners will also need to have a credit score of 600 or more. The amount you’ll be able to borrow will largely depend on the above factors, as well as your current debt-to-income ratio.

 

With Lendio’s online platform, it’s possible to complete a business loan application in as little as 15 minutes and receive the full loan amount in less than 24 hours. The application connects you with a marketplace of lenders, and a funding manager will connect with you and guide you through the process.

An SBA loan is a loan that is secured by the U.S. Small Business Administration. This means the SBA is not responsible for processing loan applications and funding loan amounts, but it will pay any unpaid balances to the lender if the borrower defaults. Because of this, the SBA is the one that establishes borrower eligibility requirements. SBA loans offer more borrower-friendly interest rates and repayment periods, but can also be harder to qualify for and take longer to process than other small business loans.

The Small Business Administration currently offers three types of loan products: microloans, 7(a) loans, and 504 loans. Microloans offer loan amounts up to $50,000 with repayment periods of up to seven years. 7(a) loans go up to $5 million, and have loan terms of up to 10 years. They are intended to help small businesses with general capital needs. Borrowers can also take out loans up to $5 million with 504 loans, but 504s are tailored for large asset purchases. Because of this, they come with repayment periods of up to 25 years.

8 out of 10 Lendio employees* or their families own a small business

*based on 136 Lendio employees who responded to an internal poll

Quickly Compare Financing Options from Multiple Funders

Applying is free and won’t impact your credit

Talk to a rep at (855) 853-6346
Mon-Fri 7:30am-5pm MST