Factoring Services for Contract Manufacturers

If you are a manufacturer of apparel, foodstuffs, or a coffee and/or tea processor, you understandably need regular financing to obtain raw materials. Too often when you seek financing opportunities you are denied a loan based on numerous factors including irregular sales, lack of a track record, or a lack of assets which may be attached for collateral. This is when it may be a good idea for you to consider working with us to help address your immediate, and long-term cash flow needs.

Solid Understanding of Your Needs

If you are unable to obtain financing to purchase fished goods from your manufacturer, you cannot deliver a finished product on time to your customer. When you do not have cash on hand, you may walk away from a purchase order or contract that you might otherwise be able to fulfill. Therefore, it is a good option for a contract manufacturer to take advantage of purchase order financing. You gain the ability to bid on high profile jobs which increases your industry credentials and provides your customers with the confidence you can fulfill your obligation in a timely manner.

Purchase Order Financing for Manufacturing

We work closely with contract manufacturers to secure funding based on outstanding purchase orders. Rather than focusing on your company’s balance sheet, we will base our financing decisions on the strength of your customer, and their creditworthiness. We will take into consideration the length of time they have been operating, their net worth, financial statements, credit rating and how current they are on paying outstanding invoices.

This type of option allows you, the manufacturer, to benefit in numerous ways including:

  • Nearly immediate access to cash– we can typically provide financing within 48 hours of approval.
  • Customized approach– you determine which purchase orders you want to factor. We work closely with you to understand your needs and we can create a funding program that best meets your needs.
  • Allows you to accelerate your growth– if you do not need to worry about having cash to fund the manufacturer, you will be able to seek out larger orders from your customers. This can help you grow your business more rapidly and offer more flexible terms to your customers.

PO financing enables you to deal with large orders, expand your production and promote business growth all without worrying that doing so will eliminate the cash you have on hand.

Discover new ways to
fund your business

Accounts Receivable Factoring

Some manufacturing companies have the raw materials on hand to fulfill a contract. However, once they have delivered the final goods, they may have to wait up to 90 days for payment. When you work with us, you can submit your invoice to us after the final product is delivered to your customer, and in some cases, receive and advance against the invoice within 48 hours after approval. This is a bonus because it allows you to move onto the next job or project in advance of receiving payment from your customer. Whether you decide to factor a single invoice, or you prefer to factor multiple invoices, we will help you find the right solution for your business.

No Negatives on Your Balance Sheet

One of the primary reasons more manufacturers are turning to accounts receivable and purchase order financing to address their cash flow needs is they are not taking on debt. Because both PO financing and invoice factoring are tied to either a contract to deliver products, or an invoice after a product is delivered, you are receiving a cash advance.

Today, a company’s strength is often measured by their balance sheet. You can continue to grow your business, hire new employees, and take advantage of vendor discounts when you have nearly immediate access to cash based on your sales. Having cash on hand ensures your business can continue to grow and thrive and not be concerned about not having the cash you need to meet your everyday obligations.

If you are a manufacturing company or a contract manufacturer and you are considering expanding, or you simply need additional cash flow to help you meet your financial obligations, consider contacting us for help. Let a Capstone Capital Group representative explore the various financing options available to help your business continue to grow and thrive. Never allow a lack of ready cash prevent you from expanding your business or prevent you from accepting a large contract.

Capstone is committed to helping manufacturers and contract manufacturers in various industries. For more information regarding our financing options, please email us at [email protected] or call us at 347-821-3400 to speak with a representative today. We will work with you to develop a customized financing program that will allow you to accept larger contracts, purchase raw materials needed to fill existing contracts, or meet your immediate cash flow needs.

Restarting Your Business After COVID-19 Mandatory Shutdown

Capstone Capital Group, LLC wants to help you make sure your planning is flawless, which is why we are offering this free guide to help you get back to business on a sound financial footing.

Call Now ButtonCall Now