Finimpact

Best Manufacturing Business Loans

To succeed in the trillion dollar manufacturing industry, you’ll need significant capital. Through manufacturing loans from reputable lenders, you can secure financing that can help you establish a site and acquire new assets.

Best Manufacturing Business Loans
Anna Baluch
Written by:Anna Baluch
Freelance Copywriter

No matter what type of manufacturing business you’re in, you must manage your supply chain and inventory in the most efficient way possible. Otherwise, you’ll waste time and money. To do so, you’ll need to invest in state-of-the-art equipment and top quality materials.

Also, you may face cash flow issues, if you allow your customers to extend their payment terms. That can make it difficult for you to run and grow your business. In addition, since manufacturing is a highly competitive, ever-evolving industry, you’ll need ample cash to pay for skilled talent that can take your products to new heights.

With manufacturing loans, you can combat these financial challenges, stand out from the competition, and maximize your profits.

Our Top Picks for Best Manufacturing Business Loans

forafinancial
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$750K
Loan Repayment
Loan Repayment 4-15 months
lendio
  • Easy to apply
  • Product & lender choice
  • Competitive offers
Min. Credit Score
Min. Credit Score 560+
Loan Amount
Loan Amount Up to $500,000
Loan Repayment
Loan Repayment 1-2 years
Torro review
  • Hundreds of financing options
  • Use the loan for any purpose
  • Fast process
min credit score
Min. Credit Score 680+
loan amount
Loan Amount Up to $575K
Loan Repayment
Loan Repayment 12 - 48 months

How to Choose the Best Manufacturing Business Loan

There is no shortage of manufacturing loans on the market. Since each option has its own pros and cons, it’s important to compare them before you move forward with any product. While ranking the best manufacturing business loans in 2022, our experts focused on these factors.

  • Loan Features: Loan features refer to loan terms, loan amounts, and repayment plans. Some lenders pride themselves on lengthy repayment terms, large loan amounts, and flexible repayment plans, which are ideal if you’re in manufacturing. Others are known for shorter terms, smaller loan amounts, and repayment plans with less options.
  • Application process: Many lenders offer online applications you can complete quickly, within minutes. You might even be able to prequalify and check offers before you formally apply, without any impact to your credit score.
  • Interest rates and fees: Interest rates and fees like origination fees and late fees can vary significantly from lender to lender. There are some lenders that offer minimal to no fees and lower the cost of borrowing for you as a manufacturing business owner.
  • Qualification process: Most lenders will require you to meet certain minimum credit score, annual revenue, and business history requirements. Some are more lenient and cater to new manufacturing business owners.
  • Customer support: Customer support can be in the form of live chat, emails, or phone conversations. It may also involve a robust FAQ section or self-serve help page on the lenders’ websites.
  • Online user reviews: All lenders say their loans are great. However, unbiased reviews and ratings on third-party review sites like Trustpilot and Better Business Bureau (BBB) reveal a lender’s true reputation and value.
  • Perks and Bonuses: While perks like credit score monitoring and hardship assistance are attractive, especially to borrowers in the challenging manufacturing industry, they’re only offered by select lenders.

Best Manufacturing Business Loans for 2022 - Full Overview

1. Fora Financial: Best for Short-Term Loans

Since 2008, Fora Financial has offered short-term loans of up to $500,000 with quick funding in up to 72 hours. If you’re facing cash flow shortages in your manufacturing business, these loans can come to the rescue, even if you don’t have the best credit.

Pros
Fast Application: To apply for a Fora loan, you can go online and fill out its straightforward application in minutes.
Quick Funding: You may receive the funds you need in only 24 hours, depending on when you apply.
Lenient Credit Requirements: Fora will look beyond your credit when assessing your application.
Cons
High rates: In exchange for quick funds, you might have to settle for higher than average interest rates.
Fees: You may be on the hook for additional fees like origination fees and late payment fees, which can increase your overall cost of borrowing.

To secure a Fora short-term loan for your manufacturing business, you’ll need a credit score of at least 500, $12,000 minimum in earnings, and six months of business under your belt. Loan amounts range from $5,000 to $500,000 with terms between four and 15 months.

The Bottom Line

If you can’t wait long for funding and have the ability to repay your loan in four to 15 months, Fora Financial is a smart choice. You may get approved for up to $500,000 in capital to help you start or grow your venture.

2. Lendio: Best for Business Acquisition Loans

Founded in 2011, Lendio is a business financing platform that matches borrowers with lenders and loans. If your goal is to acquire another manufacturing business, its business acquisition loans, which are similar to mortgages, should be on your radar.

Pros
Free to Use: You don’t have to pay any fees to apply with Lendio and check your offers.
Quick Application: Once you fill out some basic information through the online dashboard, you’ll complete the application process in about 15 minutes.
Various Options: Since Lendio is a lender marketplace, you may receive offers from many lenders.
Cons
Confusing Fees: It can be difficult to determine which fees you’ll pay for certain loan offers as Lendio partners with multiple lenders who each operate differently.
Inconsistent Qualifications: Since qualification criteria varies by lender, it’s not always clear what you need to get approved for its loans.

Business acquisition loans from Lendio offer funding amounts ranging from $5,000 to $5,000,000. APRs start as low as 5.5%. These loans come with repayment terms between 10 and 25 years so you can take your time repaying them, similar to a mortgage. Fees vary by lender. To lock in a business acquisition loan, you’ll need a minimum credit score of 560, annual revenue of at least $50,000, and business history of six months.

The Bottom Line

With a Lendio business acquisition loan, you can secure the funding you need to purchase another manufacturing business and gain control of its operations.

Try Lendio

3.Torro: Best for Startup Loans

Torro is a lender that supports small businesses and entrepreneurs. If you’re ready to get your manufacturing business up and running, its start-up capital loan may be a good fit. You can use it to cover various startup expenses like equipment, inventory, payroll, marketing, and insurance.

Pros
Many Options: Torro can connect you to hundreds of financing options so you can find the right one for your unique situation.
Flexible: You may use a Torro startup loan to pay for any expenses that will help you launch your manufacturing venture.
Fast Process:There is no paperwork or business appraisals so you may get your funds the same day you apply.
Cons
Potentially Higher Fees: Since start-up capital loans are risky to lenders, you may have to settle for a high interest rate.
Limited Chat Support: If you tend to use chat for support, you should note that it’s not always available on the Torro website.
Good Credit: In most cases, you’ll need good to excellent credit to get approved.

Torro’s start-up capital loans are similar to business lines of credit, which allow you to withdraw funds at any time. These loans go up to $100,000 and come with terms between 12 and 48 months as well as maximum APRs of 36%. Repayment terms vary. To qualify, you’ll need a minimum credit score of 700 and a maximum revenue of $5,000 per month.

The Bottom Line

If you’re new to manufacturing and would like to start your own business, a Torro start-up capital loan can provide you with funding that enables you to thrive.

Try Torro

4. BlueVine: Best for Line of Credit

BlueVine is an online lender with business lines of credit of up to $250,000. If you’re unsure of exactly how much capital you need or would like to cover working capital costs on a short-term basis, a BlueVine business line of credit is worth exploring.

Pros
Easy, Straightforward Application: You can apply online within minutes.
Quick Funding: Depending on when you get approved, you may withdraw funds from your line of credit fairly quickly.
Competitive Rates: If you have good credit, you can lock in a low interest rate.
Cons
Limited Availability: BlueVine is not available in every state.
High Repayments: Since loan terms are fairly short (6 to 12 months), you may be stuck with high repayments.

BlueVine’s lines of credit range from $5,000 to $250,000. You can choose terms of 6 or 12 months and land an APR as low as 4.8%. These loans are unsecured so you won’t have to put up any collateral to take one out.

Once you move forward with a BlueVine line of credit, you’ll repay the money you borrow plus interest on a weekly or monthly basis. BlueVine will look for a credit score of at least 600, six months or more in business, and at least $10,000 a month in revenue.

The Bottom Line

For flexibility, a BlueVine line of credit might be the ultimate solution. You’ll be able to borrow as much or as little as you want to fund your manufacturing business, up to a set credit limit.

Try BlueVine

5. Credibly: Best for Working Capital Loans

Based in Michigan, Credibly is an online lender that offers working capital loans. With a working capital loan, you can fund day-to-day expenses for your manufacturing business. It can also help you with cash flow gaps during your slow season.

Pros
Easy Application: To apply, you can fill out an online form in 10 minutes or less.
Bad Credit Accepted: As long as you have a credit score above 500, Credibly will likely approve you.
High Borrowing Limits: Since you may borrow up to $400,000, you should be able to meet the capital requirements of your manufacturing business.
Cons
High Rates: Credibly’s factor rates start 1.15, making its loan more expensive than alternative options.
Frequent Repayments: You’ll have to make your repayments daily or weekly, even if you’re struggling with cash flow.

Credibly working capital loans go up to $400,000 and feature repayment terms between 6 to 18 months. While factor rates start at 1.15, you can get approved with a minimum credit score of 500, at least $180,000 in annual revenue, and six months of business operations under your belt.

The Bottom Line

A working capital loan from Credibly can ensure you have funds to cover your daily expenses, even when you’re low on cash.

Try Credibly