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Cashflow in the manufacturing industry | Solution to cash flow issues | How does factoring work? | What are the fees?
Cashflow in the manufacturing industry
Cashflow in the manufacturing industry has always been a strong part of the American economy. In a typical transaction, the manufacturer will produce a product for a buyer. This means the manufacturer has to provide capital for materials, supplies, equipment, payroll and the actual cost of production before being paid for the product. The very nature of the business creates cash flow issues for the manufacturer as they are expected to meet these capital needs before invoicing and receiving payment on an item.
What about a bank loan? While a bank loan seems like the only option, small business owners don’t always have that option. Even for an established business with a great credit score, a bank loan can take months to process before you see the funds. That is why factoring is vital to companies in the manufacturing industry, and onboarding can take at least 7 business days, but relies on the information the applicant prepares and processing times with other lenders if additional loans or leins exist.
Solution to cash flow issues using manufacturing invoice factoring
Our experts work with manufacturers of stainless steel, plastics, electronics, lumber, pet foods, airplane parts and even body armor. This experience allows us to better understand of the challenges in the industry, which we use to assist our customers. We take the time to answer your questions and make sure you are fully aware of your options as a business in need of better cash flow. With factoring for manufacturing companies, your business will have fast access to the capital owed to you through your invoices. Our clients use this money to buy equipment, upgrade machinery and ensure materials are in place.
As a client of United Capital Funding, here’s how it works:
- First, you fulfill the agreed-upon staffing needs laid out in your agreement with your customer.
- Then, generate an invoice for the total cost of the service provided and send copies to your customer and United Capital Funding.
- Our experts will verify the invoice, then wire a large percentage (typically 80%) of the invoice amount to your account, holding the remaining percentage (20%) until your customer pays the full invoice amount to our secure lockbox.
- Once your customer pays the full invoice amount to our secure lockbox, our team wires the remaining percentage (less our fees) to your account.
- Voila! You’ve successfully unlocked that capital.
Manufacturing invoice factoring is a steady, long-term solution for your invoice management. We allow you to choose which invoices you want to factor and you can access your invoices and reports through our secure online platform, all at no extra cost.
What are the fees?
Our proposals are custom-priced on a case-by-case basis. To recieve a proposal, please click here to complete an application. Note that there is no cost to apply.
You will typically only encounter two types of fees – a fee for the cost of the capital and a banking fee (ACH or wire transfer charge). On average, our fees are lower than the industry average (according to Pepperdine Graziadio Business School’s 2019 Private Capital Markets Project). This keeps your total costs down and your invoice cycle efficient.
Please note, manufacturing factoring is not a loan. It is an advance on pending payment by your customer, which means there is no repayment on your part.
Three Ways to Get Started
Submit An Online Application
Submitting an application takes less than 10 minutes and there is no cost to apply.
Call (866) 647-2680
Call our offices! We are open Monday to Friday between 8:30 a.m. – 5:00 p.m. Eastern Time zone.
United Capital Funding came at just the right time. I can sleep at night now.
Owner, Machine Company, Tennessee
A leader in factoring for the manufacturing industry
Since 1997, our experts have helped manufacturing businesses grow by providing a service that traditional lenders can’t. We make it easier for you to get the funding you need to enhance your business.
We can do this even if you are a startup, an 8(a) contractor, or are a company with a recent history of a less-than-profitable performance.
Read our client testimonials to see why we’re a leader in factoring for manufacturing companies.
These are just a handful of manufacturing and distribution companies we’ve helped:
- Airport Baggage Lifts
- Candles
- Canvas Products
- Commercial Signs
- Dog Treats
- Electronic Components
- Lumber
- Machine & Airplane Parts
- Medical Hardware
- Mill-work
- Mulch
- Pottery
- Sports Drinks
- Stainless Steel