Every day there is news of pending manufacturing contract that are either existing or being moved back to the United States. There are strong currents working to build the country up with manufacturing being a focal point for stabilization, jobs and job security for America.
Manufacturing companies like most small to medium size businesses are not immune to cash flow issues, especially when growth for the company is at stake. America and manufacturing companies must hold hands in order to overcome the economic concerns of today.
Manufacturing companies must often times provide the up front cash investment to build and or manufacture items before delivering to the client, for payment in 30 to 60 days. Some manufacturing companies are asking for small amounts of cash up front in order to reduce the cost of tooling up, material purchases and man power needed to deliver on a huge manufacturing order.
But for the most part, as usual, the manufacturing company has to invest in the initial cost to complete the manufacturing contract.
For many years manufacturing companies have done what you call "factoring" their invoices. This is when the company turns its invoices into cash, in order to pay immediate expenses, until their client pays the Invoices. This transaction can also be called, Accounts Receivable Funding, Factoring, and Invoice Lines of Credit. Regardless of what you call the transaction, it involves relieving the cash flow stress, by providing immediate cash, without incurring debt.
This is what we do. We place manufacturing companies with lenders who charges a fee (usually between 1.5% to 3.5% of the total invoice amount) to provide immediate working capital. This transaction becomes an Invoice Line of Credit, based on the cash infusion into your business bank account based upon approved Invoices.
In most cases the funding occurs within 24 to 48 hours, sometimes a little longer. The manufacturing companies credit ratings is rarely an issue, it's the credit rating of the customer (company who is paying the invoice) that is important.
To learn more about Invoice Lines of Credit for manufacturing companies, please fill out a six question app and we will locate you a Lender as quickly as possible. Invoice Lines of Credit, funding placement. There is no fee for our service. Government Invoices are welcome, takes slightly longer for funding.