Quick answer: Manufacturers most often use equipment financing for machinery, a line of credit to buy raw materials and cover payroll while waiting on customer payments, and a term loan or SBA loan for plant expansions. Established manufacturers with steady deposits can often get working capital within days from a non-bank lender, while SBA loans take several weeks.
Why manufacturers need financing
Manufacturers pay for materials, labor and energy long before customers pay invoices, often on 30- to 90-day terms. Winning a large order can require more materials and staff than current cash flow supports, and machinery upgrades are expensive.
Common uses for manufacturing financing
- CNC machines, presses and production equipment
- Raw materials for large orders
- Payroll while waiting on customer invoices
- Plant expansion or a new facility
- Automation and software upgrades
- Certifications and quality systems
Financing options for manufacturers compared
| Option | Best for | Speed |
|---|---|---|
| Equipment financing | Machinery and production equipment | A few days |
| Line of credit | Raw materials and payroll between invoices | 1–3 days |
| Term loan | Large orders, upgrades, expansion | Same day to 2 days |
| SBA loan (7(a) or 504) | Buildings and major equipment at low rates | Several weeks |
What lenders look at for manufacturers
Lenders look at monthly deposits, customer concentration, receivables, existing equipment debt and time in business.
What you need to qualify with Brookestone Funding
- 2+ years in business
- $30,000+ in monthly revenue
- 600+ credit score
- Recent business bank statements
Qualified manufacturers can borrow $10,000 to $2,000,000 with terms up to 36 months and rates starting at 8%. Complete applications submitted early in the day can be funded the same day.
Tips before you apply
- Have purchase orders or contracts ready to show upcoming revenue.
- Know your average payment terms from customers.
- Get machinery quotes before applying for equipment financing.
- Compare offers on the total amount you’ll repay, not just the rate, and size the payment to your slowest month.
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- Can You Get a Business Loan With a 600 Credit Score? Yes — Here’s How
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Frequently Asked Questions
Can a manufacturer get a business loan with a 600 credit score?
Yes. Brookestone Funding works with manufacturers that have a 600+ credit score, 2+ years in business and $30,000+ in monthly revenue.
How fast can a manufacturer get funded?
Qualified manufacturers can often be funded the same day with a business term loan, or within 1–3 days with a line of credit, once the application and recent bank statements are complete.
What is the best loan for a small manufacturer?
Equipment financing for machinery, a line of credit for materials and payroll, and an SBA 504 or 7(a) loan for buildings and major equipment when you can wait several weeks.
Can a manufacturer get financing to fill a large order?
Yes. A short-term business loan or line of credit can cover materials and labor until the customer pays.
Ready to see what your manufacturer qualifies for? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. Apply in minutes, see our business loan options, or call 212-258-0602.
