Manufacturing Loans & Financing
Funding Your Factory,
The manufacturing industry is a vital engine of the US economy. In 2020, manufacturing contributed $2.33 trillion to GDP and employed over 12 million Americans across nearly 250,000 businesses. But running a profitable, growing manufacturing company requires significant capital investments in facilities, equipment, staff, inventory, and day-to-day operations. Accessing financing is crucial for manufacturers to fund growth and scale production.
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At Sunwest Bank, we understand the unique funding challenges facing manufacturing companies. That’s why we offer a range of tailored lending solutions to help manufacturing firms of all sizes access the capital they need. Whether you require real estate financing, equipment loans, working capital, or business expansion funding, we have the expertise and loan products to help your manufacturing business thrive.
Loans to Purchase and Expand Your Manufacturing Facilities
Purchasing, expanding, or renovating manufacturing real estate is often one of factory owners’ most considerable upfront costs. You can meet increasing production demands and scale your operations over time with the proper facilities.
Commercial Real Estate Loans
Sunwest Bank offers competitive commercial real estate loan options to help manufacturing businesses purchase, expand, or renovate their physical facilities. Our experienced commercial lenders work closely with manufacturing companies to provide facility funding based on your budget, expected growth, and financial objectives.
Commercial real estate loans can be used to:
- Purchase new manufacturing facilities, whether an existing building or the construction of a new factory. We offer loan terms of up to 25 years with flexible repayment.
- Expand your production floor space by building additions and new structures on your property. We’ll fund construction costs to upgrade your facilities.
- Acquire larger manufacturing equipment that requires facility investments like higher ceilings, reinforced floors, improved ventilation, and expanded electric/utility infrastructure.
- Renovate existing buildings to create modern manufacturing spaces with custom layouts tailored to your machinery, assembly lines, and processes.
- Refinance your current commercial mortgage to capitalize on a lower interest rate or access additional equity for investing in equipment upgrades.
Our commercial lenders work closely with clients to understand your business goals and identify the most cost-effective facilities financing. We offer expedited approvals, flexible terms, and clear guidance throughout the loan process.
SBA Loans for Purchasing Manufacturing Real Estate
The Small Business Administration’s SBA 504 loan program provides another attractive real estate financing option for eligible manufacturing companies looking to purchase or expand business facilities.
SBA 504 loans offer:
- Up to $5 million to buy/renovate existing buildings or construct new business facilities.
- Below-market fixed interest rates that help keep your mortgage affordable.
- Long 10, 20, or 25-year repayment terms so your monthly payments fit your budget.
- Require only a 10% down payment from the business. The SBA funds up to 50% of the loan amount, which helps manufacturers conserve working capital.
The SBA 504’s lower down payment and government-guaranteed structure make this loan more accessible for manufacturers who may not qualify for traditional commercial real estate financing.
Equipment Loans: Finance Your Manufacturing Machinery
Investing in new equipment and advanced manufacturing technology allows your business to boost production capacity, speed up processes, improve consistency and precision, and bring innovative products to market faster. However, modern manufacturing equipment can require millions in capital expenditures.
Sunwest Bank offers equipment financing loans to help manufacturers access capital for essential technology upgrades. Our business loans provide funding for new and used equipment purchases without forcing manufacturers to dip into valuable operating capital needed for payroll, inventory, and other expenses.
With Sunwest Bank, you gain access to:
Flexible Loan Amounts
Loans up to $5 million to finance small shop equipment to large-scale machinery purchases.
Accelerated Approval Process
Our simple online application and rapid approval process usually provide funding within five business days.
Extended Repayment Terms
Enjoy repayment terms from 2 to 7 years tailored to your projected equipment lifespan and use.
Competitive Interest Rates
Benefit from our variable and fixed rate financing options competitive with top national lenders.
Consultative Guidance
Our bankers help you identify the most strategic equipment investments for your manufacturing processes.
Whether you need CNC machines, 3D printers, robotics, CAD technology, laser cutters, or other specialized equipment, we have the loans to fund the right manufacturing machinery for your needs.
Asset-Based Lending: Financing for Manufacturers
Managing cash flow can be a perennial challenge for manufacturing businesses. Producing quality inventory requires upfront investments well before you receive client payments. That strain on working capital can make qualifying for lines of credit easier.
Sunwest Bank offers custom asset-based lending solutions designed to help manufacturers secure financing based on the strength of their business assets rather than relying strictly on credit scores.
Our asset-based financing options include:
Asset-Based Loans
Leverage your accounts receivable, equipment, machinery, inventory, and other assets as collateral to obtain asset-based loans. These loans provide urgent access to working capital so you can fulfill orders. Term lengths are tailored to your specific capital requirements.
Asset-Based Revolving Lines of Credit
Asset-based revolving credit lines allow you to draw financing up to a pre-approved limit as needed. As you collect payments and repay the line, those funds become available to access again, providing continuing working capital.
Inventory Financing
Inventory financing loans use your current finished goods, raw materials, and work-in-progress inventory as collateral. This provides financing to continue growing production levels. Repayment terms are structured around your inventory turnover rates and production cycles.
Accounts Receivable Factoring
Factoring involves selling your outstanding accounts receivables to a commercial finance company to receive immediate cash rather than waiting 30, 60, or 90 days for client payments. This rapid infusion of working capital allows you to meet payroll and fulfill new orders.
SBA Loan Options for Your
Manufacturing Business
The Small Business Administration (SBA) guarantee program helps manufacturing businesses access financing that may not be available through traditional lending channels.
Sunwest Bank is a top SBA lender, with SBA loans making up over 50% of our total annual loan volume. The SBA 504 and 7(a) loan programs are well-suited for manufacturers needing real estate, equipment, or working capital financing.
SBA 504 Loans
The SBA 504 loan provides attractive long-term financing for significant fixed assets, making it ideal for purchasing real estate and heavy manufacturing equipment. The 504 interest rates are lower than conventional bank loans, saving manufacturers substantially on interest over the life of the loan. The down payment helps preserve working capital.
SBA 7(a) Loans
The SBA 7(a) loan program offers financing up to $5 million for general business purposes, including:
- Purchasing machinery, equipment, hardware, and software
- Acquiring land, buildings, furniture, fixtures, supplies and materials
- Expanding facilities to accommodate growth
- Managing payroll, operating expenses, inventory
In addition to competitive variable interest rates, SBA 7(a) loans offer more flexible repayment terms up to 10 years – longer than conventional small business loans. This program helps manufacturing businesses access affordable financing that may not be available otherwise.
How Do You Choose the Right Financing?
With numerous loan and lender options, you must understand essential factors to choose finance aligned with your business needs and qualifications.
Loan Amount
Consider your immediate capital needs and longer-term growth plans when determining the ideal loan amount. Don’t limit yourself to the minimum required now if you foresee significant investments on the horizon.
Loan Term
The repayment term impacts your monthly payments and overall interest costs. But longer terms like 25 years for SBA real estate loans also provide cash flow flexibility so payments don’t strain working capital.
Interest Rates
Compare rates across multiple lender options. Lower rates through SBA loan programs provide significant interest savings over the entire loan term. Prioritize affordability.
Collateral Requirements
Most manufacturing loans require pledged business or personal assets to secure financing. This provides the lender recourse if you default. Have transparency into what collateral you can leverage.
Repayment Schedule
Look for loans that allow structured payments aligned with your seasonal production cycles and projected cash flows. Avoid loans with rigid repayment terms that ignore your operational realities.
Prepayment Penalties
Prepayment penalties reduce your flexibility to refinance or pay loans off early to access better financing. Try to avoid loans with these types of fees and restrictions.
Loan Purpose
Choose the loan program that aligns with how you will use the capital. Real estate loans fund facilities, while SBA 7(a) finances working capital and equipment purchases.
Why Sunwest Bank for Your Manufacturing Loans?
With over 50 years of providing customized financing solutions, Sunwest Bank has the experience to understand your manufacturing business and create the right loan package.
Industry Expertise
Our bankers understand the intricacies of manufacturing operations and supply chains. We craft optimal financing aligned with the dynamics of your business.
Flexible Loan Options
We offer a wide range of loan products and terms to access financing that best matches your capital needs and business profile.
Local Relationships
We take the time to build long-term relationships with our clients to support your financial needs across the business lifecycle.
Fast Approval and Funding
Keep your operations moving! We have efficient application and approval processes with funding in as soon as five business days for qualified applicants.
Personalized Guidance
Our bankers explain available financing options and provide expert advice to help you determine the ideal lending solutions for your manufacturing business.
