Quick answer
Business funding for manufacturers usually covers raw materials bought long before finished goods are paid for, machinery and plant, and customer payment terms that stretch the cash cycle. Equipment finance suits machinery, invoice finance and lines of credit cover the working capital gap, and property-secured loans from $20k to $5m suit factory upgrades and larger investments.
Key points
- Raw materials are paid for long before finished goods sell
- Machinery is a major, lumpy investment
- Customer terms extend an already long cycle
- Equipment finance and invoice finance are common tools
Manufacturing combines the cash demands of several industries at once: materials, labour, energy, machinery and customers on terms. The cycle from buying materials to being paid for the finished product can stretch for months, and a big order can strain cash even while it boosts sales.
The cash cycle in manufacturers
Materials are bought and held, production takes time, finished goods may be stored before dispatch, and customers pay on 30 to 60 day terms. Machinery needs maintenance, upgrades and occasional replacement. Energy costs can be significant. A large order from a new customer can need weeks of funding before the first payment.
Common pressure points
- Raw material price rises and minimum order quantities.
- Machinery breakdowns and upgrades.
- Large orders that need materials and overtime up front.
- Customers paying on long terms.
- Energy costs.
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Matching funding to the need
| Funding | Why it suits manufacturers |
|---|---|
| Equipment finance | CNC machines, presses, forklifts and plant |
| Invoice finance | Customers on account, funding grows with sales |
| Line of credit | Material purchases and overtime for big orders |
| Property-secured loan | Factory upgrades and expansion |
What an assessor will want to see
- Order book and customer concentration.
- Inventory levels and work in progress.
- Existing equipment finance.
- Margins and how cost increases are passed on.
Most unsecured lending in this sector falls between $5k and $500k. Owners with residential or commercial property can access $20k to $5m on a property-secured basis, with no valuation and flexible repayment structures.
Presenting your business to a lender
Lenders who see a lot of manufacturers know the industry’s rhythms, but they still need to see yours. Run all income through one business account, keep BAS lodgements current and be ready to explain any unusual months, such as a big one-off job or a slow patch caused by weather or a lost client. A short note on what the money is for, how much you need and how it will be repaid does more for an application than a long business plan.
How it might look (illustrative)
A sheet metal fabricator wins a $400,000 order from a construction supplier, paid in stages on 45-day terms. Steel and consumables for the first stage cost $110,000 and a new folder is needed. Equipment finance covers the machine, and a working capital loan funds the steel, repaid from the stage payments.
Fixes that cost nothing
Negotiate progress payments on large orders, review minimum order quantities with suppliers, schedule maintenance to reduce breakdowns and price contracts with clauses that pass on material increases.
In a nutshell
- Raw materials are paid for long before finished goods sell
- Machinery is a major, lumpy investment
- Customer terms extend an already long cycle
- Equipment finance and invoice finance are common tools
How we work through it with you
The process is built to avoid wasted time. The enquiry asks only what matters. The first call gathers what is missing. Statements are shared securely online, documents are signed electronically and any property security is prepared in parallel. Straightforward files can be approved within the hour, and funds can land within 24 hours once everything is signed. More complex files take a little longer, and you will be told why. Where a step is waiting on someone else, such as a co-owner’s signature, we will tell you so it can be chased.
A quick test before you borrow
Not every cash problem is a funding problem. Sometimes the better fix is a conversation with a supplier, a payment plan with the ATO, chasing an overdue invoice or adjusting prices. Funding earns its place when it solves a timing gap or unlocks an opportunity worth more than its cost. We will tell you honestly which situation you are in.
Paperwork worth gathering
A little preparation makes the first conversation far more useful, and it means the person who calls you can talk about options rather than chasing basic details:
- Your ABN and the legal name of the business.
- Online banking access, so recent statements can be shared through a secure read-only link.
- A rough figure for monthly turnover and the amount you need.
- A list of current loans and repayments, including any ATO payment plan.
- If property is involved, the address and roughly what is owed on it.
A quick word on the enquiry form
The enquiry asks for the amount, the purpose, how long you have traded, your monthly revenue, your credit history, your state and whether you own real estate. Each answer steers your enquiry towards the right option. Accurate answers let the first call move straight to solutions. Rounded-up turnover or a credit history that turns out to be different from the form means starting again, which costs everyone time.
Talk to a real person
It costs nothing to find out. Check your eligibility in about a minute, with no credit check and no obligation. One team handles your enquiry from start to finish, and you will hear from a person, not an automated system. Fill the form in as accurately as you can; a careful minute now saves days later.
Frequently asked questions
Can manufacturers finance second-hand machinery?
Often, yes, particularly common machinery with an established resale market.
Does the instant asset write-off apply to machinery?
Eligible businesses with aggregated turnover under $10 million may be able to write off assets under the $20,000 threshold. Check with your accountant.
Can manufacturers with bad credit get business funding?
Often, yes. Credit marks are considered case by case, with weight on how the business trades now and any property security available. Explain the background honestly in the enquiry.
Will an enquiry affect my credit score?
No. An enquiry runs no credit check. A credit check only happens if you decide to go ahead with a specific offer.
Ask right here, it takes a minute
The same 60-second enquiry, on this page. No credit check to enquire, and the person who reads it is the person who calls you.