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Manufacturing has long been a cornerstone of Wisconsin’s economy. It supports hundreds of thousands of jobs and drives innovation across the state. Every business in this sector, from food products to machinery, plays an essential role in maintaining streamlined supply chains and a strong economy.
Operating a manufacturing company requires a significant capital investment. Owners must be able to launch a product or service, purchase equipment and keep cash flow steady. This requires reliable financing as their business grows.
Types of Manufacturing Financing
Manufacturing loans are a type of business financing that helps manufacturers manage and grow their business. Manufacturing financing can take many forms depending on a business' specific needs including:
- Equipment & Machinery: Specialty equipment loans and SBA loans allow you to purchase or upgrade high-ticket machinery while keeping cash reserves healthy.
- Facility Expansion & Renovation: Construction loans fund ground-up builds or major infrastructure upgrades, often converting into permanent real estate financing once complete.
- Working Capital & Inventory: Revolving lines of credit and working capital loans bridge cash flow gaps which can fund upfront raw materials, seasonal inventory and overhead before revenue streams in.
- Business Acquisition: SBA 7(a) and specialized term loans cover the purchase price and transition costs required to acquire a competitor or expanding enterprise.
Choosing the Right Manufacturing Loan for Your Business
Ask yourself a few key questions to find the right financing for your needs.
What is the financing for?
Equipment purchases, daily expenses and facility expansions each require a different loan structure.
How much capital do I need?
Knowing the size of the investment you need will narrow down the appropriate financing options and terms.
Is the financing for short-term or long-term use?
Short-term needs (like inventory) are better suited for a line of credit. Long-term needs (like real estate) are better suited for a term loan, which has a fixed repayment rate over time.
What repayment timelines and cash flow work for your business?
The type of financing you choose should align with your ability to make loan payments on time.
Will the investment generate additional revenue, capacity, or efficiency?
Understanding the anticipated return will help determine the amount of financing you need.
Because each manufacturer is unique, working with a lender who can confidently evaluate these factors is crucial. An experienced lender like NEBAT can recommend a customized financing structure tailored to your specific business goals.
How to Prepare for a Manufacturing Loan
Now that you have a good idea of the types of loans to seek out, here’s how to lay the groundwork for a successful application.
- Define how much financing you need and what it will be used for.
- Gather financial statements and other relevant documentation such as inventory and accounts receivables.
- Review current cash flow and debt obligations.
- Provide details about equipment, real estate or expansion projects.
- Prepare to discuss business goals and growth plans.
- Understand any applicable collateral or SBA requirements.
Partner with an Experienced Business Lender
Manufacturing financing is not a one-size-fits-all solution. Working with a lender who understands the needs of Wisconsin businesses, and each type of business within that wide umbrella, is the first step to financial success.
NEBAT is an independent lender with robust capabilities, flexibility and decades of expertise to support manufacturers at every stage of growth. Whether you’re planning to purchase equipment, real estate, or cover day-to-day expenses, our business lenders can help you discover the right financing options for your business. Contact us today to get started.
