Fund raw materials through long production cycles.

Manufacturing is a capital-intensive business at every stage. Raw materials must be purchased before production begins — often with deposits or prepayment required from suppliers. Production costs (labor, utilities, overhead) accumulate throughout the manufacturing cycle. Finished goods sit in inventory until they're shipped. And once shipped, customers pay on terms — typically net-30 to net-60.

The result is a cash conversion cycle that can stretch 90 days or more. A manufacturer with $10M in annual revenue can easily have $1.5M–$3M tied up at any given time in raw materials, work-in-process, finished goods, and receivables. That's capital that's already been spent but hasn't come back yet.

Growth amplifies the problem. A new $2M purchase order from a retail chain is exciting — but it requires $800K–$1.2M in material purchases, production labor, and shipping before the first dollar of revenue arrives. Without working capital, manufacturers are forced to choose between accepting orders and maintaining cash flow. That's not a choice any growing manufacturer should have to make.

Manufacturing capital isn't one-dimensional. Different stages of the production and sales cycle create different capital needs — and different structures address them most efficiently.

Revolving line of credit

A revolving credit facility provides flexible working capital for the day-to-day: raw material purchases, payroll, utilities, and shipping. Draw when production ramps, repay as receivables collect. The facility revolves continuously, matching your production cycle without requiring reapplication for each drawdown.

Asset-based lending

For manufacturers with $5M+ in revenue, an ABL facility uses your receivables, inventory, and equipment as a borrowing base. As your receivables and inventory grow with revenue, the facility grows with you — providing a capital structure that scales naturally with production volume.

Purchase order financing

When you've received a large PO but don't have the cash to buy materials, PO financing provides capital against the confirmed purchase order. This is particularly valuable for manufacturers who land orders that exceed their current working capital capacity.

Equipment financing

Adding production lines, CNC machines, packaging equipment, or warehouse infrastructure requires significant capital. Equipment financing preserves working capital by dedicating a separate facility to asset purchases, with terms matched to the equipment's productive life.