Manufacturing ties up cash at every step: you buy raw materials, run machines, and pay labor up front, then wait 30 to 90 days for customers to pay. Winning a big purchase order can strain cash flow rather than ease it, because the order must be financed before a dollar comes in. This guide covers how manufacturers fund materials, payroll, and machine time to fill orders without a slow bank.
Why manufacturers run cash-tight
Net-term billing is the core issue: production costs are immediate, customer payment is delayed. A large new order amplifies the squeeze. Banks underwrite slowly and lend against real estate rather than purchase orders or equipment, so a manufacturer with a big order often cannot get capital in time to fill it.
Funding options for manufacturers
Revenue-based funding (a merchant cash advance) advances a lump sum against your deposits and is remitted as a small share of revenue — usable to buy raw materials, cover payroll during a production ramp, or bridge net-60/net-90 receivables. Equipment financing fits a specific machine purchase, and invoice factoring or a line of credit suit some manufacturers. Revenue-based funding wins on speed and approval based on deposits.
How approval works
Approval weighs your business bank deposits and revenue, not your credit score, collateral, or real estate, so a manufacturer with steady deposits can be evaluated despite credit blemishes. Eligible applications can get a same-day decision with funding commonly within 24 to 72 hours. Not all applicants qualify.
The bottom line: manufacturing funding should let you say yes to a big order without running out of cash. Y Millennial Funding is a direct funder of revenue-based funding for manufacturers doing $25,000 or more in monthly revenue — a small business loan alternative, not a loan.