Lending and Finance Options for Manufacturering Companies
Manufacturers often extend payment terms to their customers. They complete production, deliver their goods, then invoice the customer and wait to be paid. In the meantime, the manufacturer has its own costs to cover including making payroll, paying vendors, and paying for lease or mortgage. This creates a cash flow problem. However, there is a simple solution. Many small and medium manufacturers utilize invoice factoring to improve their cash flow.
Invoice Factoring is a quick, alternative to bank loans. Qualifying is much more simple as well. The main requirement is that you have accounts receivable, meaning you invoice your customers and wait a period of time for them to pay, generally 30 – 60 days. The second requirement is that you are selling to credit worthy customers. The factoring company will check the credit history of your customers for approval. Once you are approved, the process is simple:
The Institute for Supply Management has projected the manufacturing industry to continue to grow. With international supply chains being strained, there continue to be a growing need for domestic production. The industry experts at Fast Radius have highlighted six key manufacturing trends: shorter supply chains, shrinking new product development cycles, growth of sustainable solutions, expanding applications for additive manufacturing, niche product growth, and continuation of talent shortage.
In order to take advantage of the growing opportunities in manufacturing, one thing is for certain, manufacturers will need working capital. Riviera Finance has been working with manufacturers like you for more than 50 years. Give us a call to see what we can do for you.
Riviera Finance works with a variety of companies in the US and Canada to help them maintain cash flow and meet weekly financial demands.
Our process is built around immediate response to client needs, and the best cash turn around in the industry.
Receive Credit Checks on Your Customers
Competitive Rates and No Hidden Fees
No Debt is Created
Riviera takes on all the credit risk!
Complete the form for a Free Consultation.
| Type Of Business: | CNC Machining |
| Factoring Line: | $750,000 |
| Location: | Seattle, WA |
| This CNC Machine Shop has customers in a broad range of industries including automotive, semi-conductor, and medical. They needed a quick cash flow solution in order to keep production at full capacity. Riviera stepped in and provided working capital in a matter of days so that this thriving company could continue to grow without poor cash flow holding them back. | |
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