Raw materials, a production run, and a long wait to be paid
Manufacturing ties up cash at every stage: raw materials are paid for at order, labor and machine time are consumed during the run, finished goods sit in inventory, and then the invoice goes out on net-30 or net-60 terms. A large purchase order — the thing every manufacturer wants — is also the thing most likely to break the cash cycle.
Where it squeezes
- 01Raw material costs paid long before the finished goods invoice
- 02Large purchase orders that exceed available working capital
- 03Machinery purchases, retooling, and maintenance downtime
- 04Net-30 to net-60 terms from distributors and OEM customers
- 05Inventory carrying costs between production and sale
What owners use capital for
- Buying raw materials for a large purchase order
- Funding a production run before the invoice clears
- Purchasing or retooling production machinery
- Covering payroll through an extended production cycle
- Expanding capacity to take on a new contract
What manufacturing businesses most often use — in order.
Equipment & Expansion
Businesses making a larger, longer-horizon investment.
- Amount
- $25K – $2M
- Term
- 12 – 36 months, typical
- Speed
- Days to a couple of weeks
- Cost basis
- Cost reflects the asset and the term
- Asset-backed options
- Longer terms spread the cost
- Preserves working cash
The capital is purpose-bound to the asset or project, not general-use cash.
Compare structuresInvoice Factoring
B2B businesses carrying real receivables from slow-paying customers.
- Amount
- Up to 90% advance rate
- Term
- Per-invoice, no long-term contract
- Speed
- Fast once your account is set up
- Cost basis
- A discount on the invoice face value
- Scales with your receivables
- No long-term contract
- Your customer's credit matters most
Only works if you invoice other businesses — there is nothing to advance against otherwise.
Compare structuresWorking Capital
Businesses that want a fixed schedule and a clear payoff date.
- Amount
- $5K – $2M
- Term
- 3 – 24 months, typical
- Speed
- Days, once your file is complete
- Cost basis
- Fixed total cost disclosed before signing
- Predictable payment schedule
- No collateral required
- Clear payoff horizon
Less flexible than a line of credit — you take the full amount up front and repay on a set schedule.
Compare structuresSBA Loans
Established businesses that can qualify and can wait for a longer process.
- Amount
- Up to $5M
- Term
- Multi-year terms
- Speed
- The slowest path — weeks, not days
- Cost basis
- Lowest cost structure of the products here
- SBA 7(a) and 504 programs
- Longest terms available
- Lowest cost when you qualify
The most paperwork and the longest timeline, with the strictest qualification bar.
Compare structuresAmount ranges and timelines are typical ranges, not guarantees. All financing is subject to underwriting review; product availability and terms vary by applicant.
Asked and answered.
Net-60 receivables and retainage while payroll runs every Friday. The work is finished; the money is still on someone else's schedule.
Fuel and drivers are paid this week. The broker pays in 30 to 45 days. That gap is the whole business problem.
Strong nights and dead weeks in the same month. The walk-in fails when you can least afford to replace it.
Get a straight answer for your business.
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