Factoring for Manufacturing Companies

Maintain consistent cash flow and keep production flowing with facotoring for your manufacturing company.

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Funding Solutions for Your Manufacturing Company

Manufacturers manage a wide range of ongoing projects and outstanding invoices. To keep your company afloat through high and low production periods, you can choose invoice financing or accounts receivable factoring. Manufacturing factoring services allow businesses like yours to eliminate debt, maintain payroll and continue production while your invoices process.

At Porter Capital, we make it easy for manufacturing companies to go full steam ahead, even during their slowest seasons. Instead of waiting up to three months for your client to pay their invoice, choose our factoring services for the manufacturing industry. Factoring gives manufacturers the confidence and stability to pay ongoing expenses like materials, equipment and payroll.

What Is Manufacturing Factoring?

Invoice factoring for manufacturing companies allows businesses to create a payment system that works for their schedules. Factoring can be especially helpful throughout periods of low demand or high production. As manufacturers, your day-to-day business requires constant cash flow. You can maintain production costs with our manufacturing financing services.

Benefits of Factoring for Manufacturers

Manufacturers often factor their invoices to account for the industry’s unpredictability. Whether you’ve been operating for five or 50 years, your manufacturing company is bound to go through slower periods of demand. To keep yourself afloat throughout the years, you can choose our accounts receivable factoring for manufacturers.

Aside from the immediate cash advance, factoring services provide countless benefits for manufacturing companies, including:

  • Options for nontraditional funding: Securing funding for manufacturing companies can be difficult if you aren’t approved by standard credit or collateral checks. Accounts receivable factoring is an excellent loan alternative that offers reliable working capital.
  • Everyday security: As a business, you can’t delay your everyday production costs. Our factoring services help you cover short- and long-term expenses so you can grow in the industry.
  • Stress-free stability: Manufacturers can enjoy stress-free production throughout the year knowing they’ll receive their invoice payments upfront.

How Porter Capital Helps Manufacturing Companies

At Porter Capital, we provide factoring for manufacturing companies needing simplified funding assistance. Skip the complicated bank loans and receive immediate cash flow! We make it easy to apply and can often approve your business in days. Though we’re happy to be your long-term partner, there’s no obligation to factor every invoice. Choose which invoices need an advance, and we’ll be on the other end ready to begin processing.

Our team is in the office every day, eager to learn more about your business. Tell us about your cash needs, send your invoices and watch as your assets grow over time! We’ll help you pay your necessary expenses without the wait. Our client service representatives are also happy to assist your team with collections, back-office support, credit insurance and more. Speak with our team to learn more about a business partnership with Porter!

Get Factoring for Your Manufacturing Company

Our manufacturing factoring services can be an unmeasurable asset to your business. Skip the months-long waiting game for your outstanding invoices and get a reliable cash advance from Porter Capital! Our team offers funding solutions to support your business’s short- and long-term goals. With factored invoices, watch your business grow into a fierce competitor in the manufacturing industry.

Discover how invoice financing can change your manufacturing company when you speak with one of our experts today! Ready to get started? Apply for our services online!

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Frequently Asked Questions

Imagine this: You get a product request from a new client. While you manufacture, package and ship the product, you send an invoice to the client. Depending on your payment plan, clients could take 30, 60 or 90 days to complete each invoice, creating a gap in your cash flow. With factoring, you receive a cash advance on your outstanding invoices and transfer invoice ownership to our accounts receivable team at Porter Capital. Then, we wait for payment in full from your client and send you any remaining balance minus our fee!

Taking major loans from banks may help manufacturing businesses get the funds they need to manage cash flow, but it drives the business into heavy debts. Using invoice factoring to support manufacturing business can help entrepreneurs avoid debts and meet their cash flow requirements to buy equipment, repair parts, and maintain payroll.

Yes. Your manufacturing company can use factoring to purchase new equipment. In fact, here are some benefits of this funding strategy:

  • Has lower risk: The logical and practical choice to make is to finance the equipment instead. The leftover money can then go to other areas of your business to further improve it.
  • Provides a competitive advantage: Updated equipment puts you in a position of advantage ahead of your competitors because it significantly improves your operations. When operations are improved, it can lead to more customers flocking your business which yields more profit.
  • Protects against inflation: Manufacturing equipment isn’t cheap. To recoup the money required to buy it, you’re going to have to wait for a few months to a year. The problem with this is that the price of the equipment can increase in the future. You’re essentially locking it down at a fair price if you finance manufacturing equipment according to the market value. In other words, you can get the equipment at a lower price.
  • Allows for a greater tax advantage: The financing payment that’s made for the equipment is tax-deductible. Usually, you’ll need to depreciate it every year when you buy new equipment. When you can collect the depreciated amount of the equipment from yearly tax deductions, your equipment may be considered obsolete. Through equipment financing, your lease payments are an expense, which is tax-deductible from your business’ income every year in the lease term. It can also be written off in depreciation faster, making it easier for you to get returns.
  • Improves purchasing power: A business must not spend more than make more, which is why keeping an eye on your cash or credit limit is a crucial part of running your business. It’s very unfortunate whenever you know that you can’t afford a piece of equipment despite the growing need. Financing your equipment lets you buy it alongside monthly repayments that won’t significantly affect the company budget. In the long term, it can lead to better production capacity, which can yield more profits.
  • Improves credit score: Similar to a person’s credit score, your business’ credit score is just as important. The only difference is that your business will be evaluated based on how risky it is if you can make the monthly repayments or not. As long as you make the monthly repayments, you have nothing to worry about because it does nothing but contribute to a good credit score.