Manufacturing is an essential part of the American economy, supporting 8.5% of the country’s workforce. Of the nearly 252,000 businesses that work in manufacturing, 75% of them have less than 20 employees, according to the National Association of Manufacturers. For many small businesses, it can be difficult to find a loan, whether through a bank, the Small Business Association, or alternative lenders offering cash advances loans or factoring lines. And this is doubly true when it comes to a manufacturing business loan.
Without the dollars they need, even established manufacturing companies struggle to overcome shortfalls to their cash flow. Many make up for it by delaying payment to vendors, passing on good jobs, holding off on hiring, or going into debt.
Mobilization Funding’s Work in Progress Loan Program
Unlike other lending programs, Mobilization Funding is available for businesses before they invoice for their products. With the capital they need on hand, they can order raw materials, make payroll, negotiate better terms with their suppliers, and function more smoothly overall.
Here’s how it works:
- 1. Receive an order.
- 2. Mobilization Funding will review the purchase order or contract and build a repayment structure to match up with your cash flow and work schedule.
- 3. Once approved, complete the required paperwork.
- 4. Loan is funded!
- 5. Order materials, pay labor, cover shipping costs, etc.
- 6. Deliver products.
- 7. Upon payment for order, the loan is repaid.
A Mobilization Funding Work in Progress loan is one option for manufacturing businesses that have been operating for at least two years and need up-front capital to order raw materials, pay for equipment, or cover other expenses like labor and shipping.
The approval process typically takes about five business days, and there’s no penalty for an early payment. And yes, you can have several orders with different clients.