Industry
Financing for shipbuilding & marine manufacturing companies
Shipbuilders and boat builders carry enormous work-in-process before a milestone payment ever clears, whether the customer is the Navy, the Coast Guard, or a commercial fleet operator. We connect yards with lenders who understand progress billing and Jones Act contract structures.
You've got steel cut, hull sections welded, and a crew on the floor months before the next milestone payment hits your account. Whether you're building for the Navy, the Coast Guard, a commercial towing company, or a recreational boat brand, the contract structure is the same problem: big value delivered, payment tied to inspection and milestone sign-off.
That gap between labor and material spend and milestone payment is where yards run out of runway, especially smaller Jones Act shipyards and marine subcontractors competing against primes with deeper balance sheets.
We work with lenders who understand progress billing, government subcontract flow-down terms, and why a hull under construction is real collateral even though it can't be sold to anyone but the contracting customer. That knowledge is what makes financing a milestone-billed marine contract possible.
Want a written answer specific to your shipbuilding & marine manufacturing operation? Email a specialist — no pressure, no obligation, no fees to you.
Cash-flow challenges we solve
The specific spots where shipbuilding & marine manufacturing operators run out of runway — and where the right funding structure keeps you moving.
- Progress billing and milestone payments that lag far behind labor and material spend
- Navy, Coast Guard, and commercial fleet contracts with 60–120 day payment cycles after milestone acceptance
- Steel, aluminum, and marine coating cost volatility on multi-year build contracts
- Subcontractor and vendor payments due well before the prime contractor releases funds
- High working capital needs to carry payroll through long build and inspection cycles
How funding works for shipbuilding & marine manufacturing
A typical referral path — tailored to how your cash cycle actually runs, not a generic small-business template.
You win the build contract or subcontract
A government prime, Navy/Coast Guard program, or commercial fleet operator awards a vessel build or repair contract with defined milestones.
We fund the labor and material between milestones
A working capital line or asset-based facility against work-in-process and progress billings keeps steel, coatings, and payroll funded between milestone payments.
You bill the milestone, we advance against it
Once a milestone is inspected and accepted, factoring or ABL advances against that progress billing instead of waiting the full payment cycle.
The prime or owner pays, the line resets
Payment clears on the contract's normal schedule, reserves release, and your facility is ready to carry the next milestone or the next vessel in the program.
Which program fits shipbuilding & marine manufacturing best?
A side-by-side view of the programs manufacturers in this space actually use — ranked by how often they're the right fit for shipbuilding & marine manufacturing operators. Your specific match depends on buyers, margins, and what you're trying to solve.
- Best for
- Established manufacturers with A/R, inventory, and equipment collateral
- Speed
- 3–6 weeks
- Typical size
- $1M–$50M+ revolver
- Watch for
- Requires monthly reporting and borrowing-base discipline
A scalable revolver against A/R, inventory, and equipment — usually a fit for larger Shipbuilding & Marine Manufacturing manufacturers with clean books.
See Asset-Based Lending (ABL) details- Best for
- Short-term gaps — payroll, materials, a specific catch-up
- Speed
- 2–7 business days
- Typical size
- $25K–$1M
- Watch for
- Shorter terms, higher effective cost — use with a clear payoff plan
Bridges short gaps in Shipbuilding & Marine Manufacturing operations — payroll, a materials buy, or a specific catch-up — without a long approval process.
See Working Capital details- Best for
- Real estate, acquisitions, refis, long-horizon growth capital
- Speed
- 45–120 days
- Typical size
- $150K–$5M+
- Watch for
- Longest timeline and most documentation of any program
Long-horizon capital for Shipbuilding & Marine Manufacturing real estate, acquisitions, refis, or expansion — the slowest path, but usually the cheapest.
See SBA & Term Loans details- Best for
- Shops with creditworthy B2B / gov buyers on net-30/60/90
- Speed
- 7–14 days to onboard, 24–48 hrs per invoice after
- Typical size
- $25K–$10M+ per month
- Watch for
- Your customers' credit matters more than yours
Sometimes used. Converts open invoices into cash fast — a natural fit for Shipbuilding & Marine Manufacturing shops selling to slow-paying commercial or government buyers.
See Invoice Factoring details- Best for
- Funded POs from creditworthy buyers when you can't self-fund materials
- Speed
- 1–3 weeks
- Typical size
- $100K–$25M per PO
- Watch for
- Gross margins usually need to clear ~20–25% to pencil
Sometimes used. Funds materials and production on real, awarded POs so Shipbuilding & Marine Manufacturing manufacturers can accept orders bigger than their cash on hand.
See Purchase Order Financing details- Best for
- Adding capacity — CNC, robotics, lines, tooling, vehicles
- Speed
- 3–10 business days
- Typical size
- $25K–$5M per asset
- Watch for
- Rate/term depend on asset age, condition, and useful life
Sometimes used. Adds machinery, tooling, or vehicles for Shipbuilding & Marine Manufacturing operations without draining working capital.
See Equipment Financing detailsSpeeds and sizes are typical ranges, not offers. Actual terms depend on underwriting and the funding partner. We are an independent referral service, not a bank, lender, or investor — nothing here is a commitment to fund.
Shipbuilding & Marine Manufacturing financing — FAQs
Yes. Asset-based lending and working capital facilities can advance against work-in-process and progress billings so a yard isn't forced to slow production while waiting on milestone acceptance and payment.
Yes. Lenders familiar with government contracting understand subcontract flow-down terms, progress payment clauses, and assignment of claims requirements common to Navy and Coast Guard vessel programs.
Once a milestone invoice is issued and accepted by the prime or owner, factoring can advance a percentage of that billing within days rather than waiting the standard 60–120 day marine industry payment cycle.
Yes, through equipment financing or an SBA loan. Plate cutting equipment, welding automation, and coating/paint booth systems are financeable over terms matched to the equipment's useful life.
ABL facilities typically advance against progress billings, work-in-process value, raw steel and aluminum inventory, and equipment, sized to what's verifiably on the yard floor and under contract.
Subcontractors qualify too. Underwriting looks at the flow-down contract terms and the prime's payment history, so a subcontractor with a solid milestone schedule can access the same tools as a prime.
ABL and working capital facilities for shipbuilders typically take 3–5 weeks due to contract and collateral review. Factoring against an accepted milestone invoice can fund in 24–48 hours once the account is set up.
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Industrial Machinery & Equipment
Working capital and equipment financing for OEM machine builders, integrators, and heavy equipment manufacturers.
Shipbuilding & Marine Manufacturing manufacturing hubs we serve
Jump into a local page for buyer context, eligibility, and program mechanics for shipbuilding & marine manufacturing shops.
Keep reading
Hub resources that explain how state funding guides works for US manufacturers.
Related guides
Comparisons
Funding Requirements Checklist for US manufacturers
See exactly what underwriters actually look at — for factoring, PO financing, equipment, working capital, ABL, and SBA — before you fill out a single application.
- What documents you need for each program
- Typical time-to-fund by program
- Common disqualifiers worth knowing up front
- How Manufactor Finance is compensated — $0 fees to you
Talk to a funding specialist
Questions before you apply? A specialist can walk through this checklist with you, no pressure and no obligation.
Ready to keep production moving?
Start with a quick app or a phone call. We'll tell you exactly what the right program requires. At no charge.
Apply. Fund. Deliver. No obligation.
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