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.
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.
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:
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.
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:
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.
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.
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.
Our bankers help you identify the most strategic equipment investments for your manufacturing processes.
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.
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 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 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.
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.
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.
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.
The SBA 7(a) loan program offers financing up to $5 million for general business purposes, including:
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.
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.
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.
Compare rates across multiple lender options. Lower rates through SBA loan programs provide significant interest savings over the entire loan term. Prioritize affordability.
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.
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 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.
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.
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.
Our bankers understand the intricacies of manufacturing operations and supply chains. We craft optimal financing aligned with the dynamics of your business.
We offer a wide range of loan products and terms to access financing that best matches your capital needs and business profile.
We take the time to build long-term relationships with our clients to support your financial needs across the business lifecycle.
Keep your operations moving! We have efficient application and approval processes with funding in as soon as five business days for qualified applicants.
Our bankers explain available financing options and provide expert advice to help you determine the ideal lending solutions for your manufacturing business.