The short answer
A manufacturing business loan is funding structured around how a shop actually operates: you buy material and pay labor weeks or months before your customer pays you. The right program depends on where your cash gets stuck. If it is stuck in unpaid invoices, that is factoring. If it is a machine you need, that is equipment financing. If it is a confirmed order you cannot afford to produce, that is PO financing. There is no single best loan, only the best fit for the gap you have.
The 6 program types manufacturers actually use
Every funding option a US manufacturer will realistically encounter falls into 1 of these 6 buckets:
- Invoice factoring. Sell your unpaid B2B invoices and get most of the cash within days instead of waiting net 30, net 60, or net 90.
- Equipment financing. Spread the cost of a machine over its productive life, with the machine itself as collateral.
- Purchase order financing. A funder pays your suppliers directly so you can produce a confirmed order you could not self-finance.
- Working capital. Short-term cash for payroll, material, or a gap that does not map to a single invoice or machine.
- Asset-based lending. A revolving line secured by your receivables and inventory, built for larger, established shops.
- SBA and term loans. The cheapest money on this list, and the slowest. Best for planned expansion, not emergencies.
Real rates and real timelines
These are directional ranges, not quotes. Your actual offer depends on your customers, credit, revenue, and industry. Anyone promising a specific number before seeing your file is guessing.
| Program | Advance / size | Typical cost | Speed to fund |
|---|---|---|---|
| Invoice factoring | 80-95% of the invoice | About 1-3.5% per 30 days | 3-10 days |
| Equipment financing | Up to 100% of equipment cost | About 7-18% APR | 5-15 business days |
| Purchase order financing | Up to 100% of supplier cost | About 2-6% per 30 days | 2-4 weeks |
| Working capital | $25K-$5M | Factor rates or APR, varies | 2-7 business days |
| Asset-based lending | Up to 85% of AR + 50% of inventory | About SOFR + 3-8% | 3-8 weeks |
| SBA / term loan | Up to $5M | About Prime + 2.75-4.75% | 45-120 days |
How underwriting decides
Underwriters are not judging whether your business is good. They are pricing the risk that the money does not come back. What they look at changes by program:
- Factoring and PO financing lean on your customers' credit and the strength of the order, because that is where repayment comes from.
- Equipment financing weighs the machine's resale value alongside your credit and time in business.
- Working capital, ABL, and SBA look hardest at you: revenue consistency, bank statements, tax returns, and the owner's credit.
This is why a shop declined by a bank can still get funded. A bank term loan grades the owner. A factor grades the customer.
Which program fits which situation
- Big customers paying net 60 or net 90: invoice factoring.
- A machine that pays for itself in production: equipment financing.
- A confirmed PO bigger than your cash on hand: PO financing.
- Payroll or material gap with no single collateral piece: working capital.
- Established shop wanting a revolving line: asset-based lending.
- Planned expansion with time to spare: SBA or term loan.
Most manufacturers end up on a stack of 2, for example factoring plus equipment financing, matched to how the shop actually runs. See every option on our funding programs page, or read how the placement process works.
What it costs to apply
With us, nothing. No application, origination, or closing fees. Our funding partners compensate us for our part only after you actually receive your funds. Nothing additional is required from you. You sign directly with the institution, and you can walk away at any point before you sign.
Manufactor Finance is a US independent commercial finance broker. We are not a bank, lender, or investor, and we do not help with grants or grant applications. Rate and timing ranges above are directional, not quotes, and every offer is set by the funding institution after underwriting.