Picking the best manufacturer finance company can be a challenge. There are many intricate factors involved and understanding them isn’t easy. Below are the major issues that must be understood to pick the proper finance company for your specific manufacturing business. At times, the best solution is not always the easiest.
Your specific industry
It’s crucial that the finance company has deep expertise in your manufacturing process and best industry practices to help optimize efficiency, accuracy, and profitability. The best financing company will help decrease lead times, time to market, and minimize supply chain disruptions. With over 20 years of experience, BusinessCash has deep industry expertise in dozens of industries and manufacturing processes.
Each financing company has different levels of risk they are willing to take on. Make sure you understand these limits when researching finance companies. Lending companies typically have minimums based on your manufacturer’s yearly revenue. They will also have maximums based on the type of clients they are willing to fund. Our typical client has sales between $30,000 and $10,000,000 per month.
Your personal and company’s credit
Unlike bank lenders, factoring companies focus much of their approval process on the credit of the manufacturers’ buyers, not your own. This allows you to leverage profitable opportunities and get the funding you need in order to buy raw material, pay for labor, new training or buy new equipment. Ask your funding source about obtaining a factoring line of credit vs traditional bank financing.
Your time in business
Being a startup implies increased risk to a lender. When factoring an invoice or purchase order, the time in business becomes a non-factor. At BusinessCash, we look at the creditworthiness of your buyer to determine risk, not how long you have been in business.
One time or long-term funding solution?
With anything important in life, creating trustworthy, long-term relationships is critical to your happiness and success. The same goes for finance companies with trust built over time and history. At BusinessCash, where we are interested in long-term relationships of one year or more. We are fully dedicated to our manufacturing clients from day one or year 10. Some companies will do short-term deals such as spot factoring where you’ll receive an advance on a single invoice without building a trustworthy relationship with the financing company.
The experience of the funding source
An inexperienced finance company will often take on unnecessary risk in order to obtain your business. They don’t have the depth of knowledge in your industry needed in order to optimize efficiency, accuracy, and profitability with your financing package. At BusinessCash, we have been in business for over 20 years. We know what it takes to build trustworthy relationships with our clients.