Manufacturing has taken a hard hit in the past few decades in the US. Traditional, large-scale industrial manufacturing has largely migrated off-shore to other countries with lower labor costs.
Yet, there are still a wide range of smaller manufacturing businesses, especially those in niche markets or who rely on highly-skilled tradespeople, automation, or otherwise benefit from the US market that are still going strong.
The future is an open question for many manufacturers, of all sizes, but at the moment, both consumer-focused and business-focused manufacturing businesses in the US remain operational, employing over 11 million adults.
Loans for Manufacturing Businesses
Given the turbulence in the manufacturing sector, obtaining sufficient funding for operations, equipment purchase, raw material purchases, and other expenses can often be a challenge.
Adding to that challenge, many manufacturing sectors tend to be cyclical in nature, rather than having consistent, relatively flat production and sales rates throughout the year.
The net result is cash flow and capital outlay issues that can plague even the most well-run manufacturing businesses.
New and emerging technologies also pose challenges, as robots and automation can be a huge cost-savings measure, but cost a lot in up-front purchase price, deployment, and employee training.
BizFly Funding can help with all of these financial challenges that manufacturing businesses in the US face today, with a variety of loan options available to even those manufacturing businesses who may have bad credit or limited credit history.
Typical Uses for Manufacturing Sector Loans
he uses of funding and loans in the manufacturing sector can vary as widely as the types of manufacturing businesses that exist. The needs of one may vary considerably from the needs of the next, depending on the market segment, size, scope, products manufactured, and so on.
Still, at their core, many manufacturing businesses share some fundamental common traits.
The most common uses for loans, therefore, also share some common themes, including:
The saying, “You’re either growing or you’re dying” is often applied to businesses, and manufacturing sector businesses are no exception to this rule. Success breeds success, but it also breeds the need to expand.
Adding more personnel, equipment, raw materials, inventory, and property to your operations all come with a steep price tag. Advertising and marketing, and making inroads to expand your customer base can also be quite expensive.
A flexible line of credit or unsecured small business loan from BizFly Funding can enable you to conduct all of your expansion-related activities, and then pay back the loan as your business increases over time.
For businesses that haven’t – or can’t – migrate to highly automated systems, staff and personnel expenses can be right up there with equipment and raw materials as a high percentage line item on your weekly or monthly cost ledgers.
Both basic operations as well as seasonal or planned expansions can mean growing payroll and benefit expenses.Having the cushion or flexibility of extra funds for staffing and compensation makes managing your business activities and scheduling much easier.
A loan or line of credit can be a perfect choice to help with your cash flow, and put worries about staffing and payroll aside.
Finally, equipment makes up the largest single one-off expenses for most manufacturing businesses. Initial purchase, as well as ultimate replacement, can be extremely costly, with high-end industrial manufacturing equipment costing millions in many cases.
Even if you do not need to replace or buy new equipment, a single breakdown repair or maintenance activity can cost from tens of thousands to hundreds of thousands of dollars in a lot of cases.
These are expenses that most businesses cannot absorb without taking on some debt. A short term loan from BizFly Funding is a perfect choice – you can get the funds you need to get your equipment or keep it in good working order, without putting up your property or other assets as collateral.
Then, with your equipment working, you can continue business operations, and pay the loan back over time as that equipment generates goods, sales, and profits for you.
Benefits of Choosing BizFly Funding for Your Loan
BizFly Funding exclusively deals in funding for small businesses. We work with businesses to select and deploy the best products to meet their needs – even if they have poor credit or a limited credit history.
We know that access to capital can make all the difference in whether or not your business succeeds, grows, and ultimately reaches its full potential.
We’re proud to partner with small businesses in the manufacturing sector, and hope you’ll consider BizFly Funding for all of your business financing needs. Let’s get those conveyor belts rolling!