Frequently asked questions

No. We are a US independent business financing referral service. We are not a bank, private equity firm, direct funder, investor, or lender. We refer manufacturers to the right institution for their needs.

Our funding partners compensate us only after you actually receive your funds; in California and Missouri they instead pay us a fixed fee per inquiry, whether or not you are funded. Either way, you pay us nothing.

• No application, origination, or closing fees charged to you.
• In most states we are compensated by the funding partner only after funds land in your account; in California and Missouri we are paid a fixed fee per inquiry instead.
• Nothing additional is required from you, ever.

Invoice factoring is the sale of your unpaid invoices to a factoring partner at a small discount, in exchange for immediate cash — usually 80–95% of the invoice amount within days. Your customer pays the factor directly on their normal terms.

Not always. Factoring, for example, weighs your customers' credit much more than your personal credit. Other programs care more about time in business and revenue. We match your profile to the right program.

It depends on the program. Receivables-based programs move in days, while SBA and larger term loans take months. Typical ranges from first conversation to funds:

• Invoice factoring: 3–10 days to set up, then 24–48 hours per invoice.
• Working capital: 2–7 business days.
• Equipment financing: 5–15 business days.
• Purchase order financing: 2–4 weeks.
• Asset-based lending: 3–8 weeks.
• SBA and term loans: 45–120 days.

No. Every program we refer is debt or receivables-based. You keep 100% ownership of your business.

Some programs require time in business, and if you're pre-revenue we'll be straight with you about what won't fit yet.

• Many programs want 6–12 months of operating history.
• A confirmed purchase order or strong receivables can place earlier.
• The baseline we look for is $25K in monthly revenue, or a confirmed PO that gets there.

There is no single cutoff, because each program weighs credit differently. Challenged credit can still fit invoice-based and purchase order programs.

• Invoice factoring leans on your customers' credit more than yours.
• Equipment financing is secured by the machine, so credit requirements are lighter.
• Working capital leans on monthly revenue and bank activity.
• SBA and term loans expect the strongest credit profiles.
• Not sure where your file lands? Score your readiness in 8 questions.

Term debt is hard before you have history, but a confirmed purchase order from a creditworthy customer or strong receivables can still place.

• Baseline: $25K in monthly revenue, or a confirmed purchase order that gets you there.
• A confirmed purchase order from a creditworthy customer can place without history.
• Strong receivables from B2B or B2G customers can place early through invoice factoring.
• Term debt is rarely available before you have operating history.
• Check your readiness score to see which programs fit your answers.

Often, yes. A bank decline is one of the most common starting points we see.

• Factoring, PO financing, and working capital underwrite your customers, orders, and revenue.
• Equipment financing is secured by the asset, not just your credit file.
• Bring the decline letter if you have it, because it helps us place the file faster.
• Score your file to see where a bank decline matters least.

The exact list varies by program, and our Funding Requirements Checklist walks through it program by program. Most full applications ask for the following.

• 3 to 6 months of business bank statements.
• Current financials: profit and loss plus balance sheet.
• A/R and A/P aging reports.
• Ownership breakdown and government-issued ID for majority owners.
• A short description of the use of funds.
• Score your file first so you gather documents for the right program.

No. The score is directional guidance based on your answers. Real approval, terms, and timing are decided by the funding institution during underwriting.

No. The first call or quick app needs nothing but a few minutes. Clean, current financials matter later because they are what keep a file moving fast through underwriting.

Not usually. Factoring underwriting weighs the credit of the customers who owe you money much more heavily than your personal credit. Manufacturers with challenged credit are often still approved.

• Underwriting focuses on your customers' credit and payment history, not yours.
• Challenged personal credit, thin files, and past bankruptcies can still qualify.
• You need B2B or B2G invoices on net-15 to net-90 terms.
• Baseline volume is about $25K or more in monthly revenue.
• Not sure your file clears it? Score your readiness first.

Programs vary. Some are whole-ledger, others let you pick and choose invoices or specific customers. We'll match you with a structure that fits how you actually run your shop.

Account setup typically runs 7–14 business days. After that, first funding on an approved invoice lands within 24–48 hours.

Advances typically run 80–95% of the invoice, with fees roughly 1–3% per 30 days. Volume, customer credit, and average invoice size drive where you land in the range.

Established commercial and government buyers see factoring notices constantly — it's routine AP paperwork. A good factor handles notification professionally so it never becomes a friction point.

Sometimes, with an intercreditor agreement between the bank and the factor. More commonly, factoring replaces a maxed-out line, or supplements it against specific customer receivables the bank doesn't advance well on.

Yes. Many partners finance used equipment, including private-party purchases, though rates and terms depend on the age and condition of the asset.

Often yes—soft costs like delivery, rigging, install, and training can frequently be rolled into the financed amount.

Most equipment lenders like 2+ years in business and a 650+ personal FICO for best pricing, but story-credit and startup programs exist for stronger asset classes like CNCs, presses, and trucks.

• Best pricing usually starts at 2+ years in business and a 650+ personal FICO.
• The equipment secures the financing, so credit requirements are lighter than unsecured loans.
• Startup and story-credit programs exist for strong asset classes like CNC machines, presses, and trucks.
• Rates typically run about 7–18% APR depending on your profile and the asset's age and condition.
• Younger shop? Check your readiness before you apply.

A $1 buyout lease acts like a loan and keeps the asset on your balance sheet. A fair-market-value lease usually has lower payments but returns the asset at term-end. We compare both against your tax and cash-flow goals before you sign.

Many programs fund 100% for qualified borrowers. Used, private-party, or higher-risk profiles may require 10–20% down or an additional advance payment.

It typically costs more than a traditional bank line, but it's often the difference between accepting a large order or turning it down. The profit on the order usually more than covers the cost.

Most PO finance partners want to see orders of at least $50,000, with a sweet spot from about $100,000 up into the millions. Very small POs often fit better inside a factoring or working-capital facility.

• Most partners start at confirmed orders of $50,000 or more.
• The sweet spot runs from about $100,000 into the millions.
• The end buyer must be creditworthy, because their payment repays the advance.
• Smaller orders usually fit better inside factoring or working capital.
• Unsure your PO is big enough? Score your file in 8 questions.

Both models work. PO finance is common for finished-goods resellers and for manufacturers producing to a confirmed order. Underwriting looks harder at production risk and supplier relationships when you're the maker.

Yes. Many partners will pay overseas suppliers by wire or letter of credit, provided the end buyer is a creditworthy US or established international account.

The PO facility funds production. Once you invoice, a factoring line takes out the PO advance and gives you working capital until the customer pays. That combination is a very common growth stack for scaling manufacturers.

ABL is a revolving line you draw against; factoring is the outright sale of specific invoices. ABL usually has lower cost of capital but stricter eligibility and monthly reporting requirements.

ABL usually starts to make sense around $10M in revenue and $1M+ in eligible receivables, though asset-heavy manufacturers can qualify earlier. Below that, factoring is usually the cleaner fit.

• Typical starting point is around $10M in annual revenue.
• You need $1M or more in eligible receivables, inventory, or equipment.
• Asset-heavy manufacturers can qualify earlier on collateral strength.
• Below that size, invoice factoring is usually the cleaner fit.
• Not sure you meet the collateral bar? Score your readiness.

Roughly 80–90% on eligible AR, 40–60% on eligible inventory, and 60–80% on appraised equipment orderly liquidation value. Ineligible AR (concentration, disputes, foreign) gets carved out of the base.

Expect monthly borrowing base certificates, AR/AP agings, inventory reports, and financial statements. Field exams and appraisals happen periodically. Good bookkeeping is not optional in an ABL relationship.

Yes — this is one of the most common uses. When a bank line has been capped or called, an ABL structure can usually take out the existing debt and provide meaningfully more availability against the same collateral.

Amounts depend on revenue, time in business, and cash flow. Many manufacturers qualify for lines that scale with their monthly deposits.

• Facilities typically range from $25K to $5M.
• Approval leans on monthly revenue and bank activity more than collateral.
• Lines often scale with your average monthly deposits.
• Most programs want at least 6 months in business.
• If you invoice other businesses on terms, compare against invoice factoring.
• Score your readiness to see what size line your revenue supports.

For most working-capital programs, an approval can come back same-day and funding can land in your operating account within 24–72 hours of signed docs.

Usually the last 3–6 months of business bank statements, a one-page application, and, for larger requests, a recent P&L and balance sheet. We tell you the exact list before you spend time gathering.

The initial review is a soft pull that does not affect your score. A hard pull only happens if you accept an offer and move forward, and only with the funder you choose.

Not necessarily. Funding partners in our network offer term loans, revolving lines, and receivables-based facilities. Cash advance and revenue-based structures are available through partners in most states and are not offered to businesses in Texas, Virginia, or Connecticut. Whatever the structure, you'll see it and its true cost plainly before you choose.

SBA loans typically take 60–120 days from complete application to funding. We help you assemble a clean package up front to keep the timeline as short as possible.

7(a) is the general-purpose program (working capital, equipment, acquisitions, refinance) up to $5M. 504 is specifically for owner-occupied real estate and heavy equipment, often with better long-term rates on the real estate portion.

Typically 10% for most SBA loans, and as high as 15–20% for acquisitions or when the buyer is new to the industry. Seller notes on standby can sometimes count toward the equity injection.

• 10% equity injection is typical for most SBA loans.
• Acquisitions and buyers new to the industry can run 15–20%.
• Seller notes on full standby can sometimes count toward the injection.
• SBA runs a longer timeline and a heavier file than other programs. Check your readiness before you commit.

Yes — SBA 7(a) is one of the most common ways to finance a manufacturing acquisition, often combined with a seller note. The SBA lender packages the transaction so the debt service coverage and use-of-proceeds narrative match what its underwriters expect.

SBA requires available collateral to be pledged, which can include a personal residence if there's meaningful equity. On loans where business collateral fully covers the loan, personal real estate typically is not required.

A net 30 vendor is a supplier that ships you goods now and lets you pay the invoice within 30 days. When that vendor reports your payment history to a business credit bureau, the account becomes a trade line on your business credit file.

Most starter net 30 vendors approve on basic business records rather than credit history. Requirements vary by vendor and can change, so confirm before you apply.

• Registered US business entity (LLC or corporation).
• EIN from the IRS.
• Business bank account in the company's name.
• Business address and phone number.
• D-U-N-S number (some vendors).
• Trade references or an existing business credit file (larger industrial suppliers).

Yes, many starter-tier vendors approve newer businesses based on the entity itself rather than a long credit history. The key is to have clean, consistent business records: registered name, EIN, business bank account, and business phone and address. After a few months of on-time payments, larger industrial suppliers become easier to qualify for.

Many starter vendors approve on the business entity, EIN, and business bank account without a personal credit pull. Larger industrial suppliers may run a business credit check or ask for trade references. Some may require a personal guarantee for larger credit limits. Terms vary by vendor and can change, so confirm before you apply.

A D-U-N-S number is a 9-digit business identifier issued by Dun & Bradstreet. Manufacturers need one because Dun & Bradstreet is the most common bureau that net 30 vendors report to. Without a D-U-N-S number, a paid vendor invoice may never land on your business credit file, even if the vendor reports.

Most business credit scoring models want to see several reporting trade lines before they produce a meaningful score. Three to five accounts you actually use every month is a reasonable target — real, recurring spend beats a long list of dormant accounts.

Vendors typically report on their own cycle after an invoice is paid, so plan on a few billing cycles before a new trade line is visible. Paying early, not just on time, is what strengthens the file with bureaus that weight promptness.

Different vendors report to different bureaus: some report to one, some to multiple, and some do not publicly confirm reporting. Always ask the vendor directly which bureaus they report to and how often. The 3 main US business credit bureaus are:

• Dun & Bradstreet.
• Experian Business.
• Equifax Business.

The most useful vendors are ones selling what your shop already buys, because real recurring spend builds the file.

• Industrial and shop supplies: Uline, Grainger, Fastenal, MSC Industrial Supply, McMaster-Carr.
• Starter office supply trade lines with low minimums: Quill, Summa Office Supplies, Crown Office Supplies.
• Confirm which bureaus a vendor reports to before opening the account.

No. Net 30 shifts 30 days of supplier spend, which helps but does not cover payroll, tooling, a large raw material buy, or a 60- to 90-day receivable from a big customer. Manufacturers usually pair vendor terms with invoice factoring, purchase order funding, or equipment financing.

Yes. A seasoned business credit file with several reporting trade lines gives an equipment lender third-party payment history to review, which can make approvals easier and terms better. Net 30 accounts alone are not enough, but they are one of the building blocks lenders look at. See what else underwriters weigh in our equipment financing guide, or score your readiness before you apply.

Most stalled files come from accounts that never report or never get used. The mistakes we see most:

• Opening accounts and never ordering.
• Paying by personal card instead of the business account.
• Assuming every net 30 vendor reports to a bureau.
• Using inconsistent business names or addresses across vendors.
• Chasing trade lines while a 90-day receivable is the real cash problem.

Late payments can be reported to business credit bureaus and hurt your business credit score. Some vendors also charge late fees or suspend your account. Paying early is the safest approach because some scoring models reward early payment and none penalize it.

No. Manufactor Finance is a US independent business financing referral service, not a bank, lender, investor, or supplier. We do not issue net 30 accounts, and we do not help with grants or grant applications. We refer manufacturers to the right funding institution for their situation.