At a glance
- Best for machinery
- Equipment financing up to $10,000,000
- Best for slow payers
- Business line of credit
- Best for facilities
- SBA 504 (up to $5.5M) or 7(a) loan
- NexGen amounts
- $10,000 to $20,000,000 across programs
- Approval speed
- Typically 1 to 24 hours for many programs
- Credit
- 650+ on most programs; 500+ for revenue-based financing; 700+ for SBA loans
Manufacturers carry cash longer than almost any other kind of business. You buy raw materials, run them through production, ship finished goods, and then wait 30, 60 or even 90 days for customers to pay. Meanwhile machines need maintenance, new contracts need materials, and growth means buying equipment that can cost as much as a building.
This guide covers the best financing for machine shops, fabricators, food and beverage producers, plastics and packaging companies, printers, contract manufacturers and other producers, plus how to qualify and the questions owners ask us most.
At NexGen Lending, we help manufacturers nationwide compare equipment, working capital and growth financing with one application.
Why Manufacturing Financing Is Different
- Long cash cycles. Money goes out for materials and labor long before customers pay.
- Capital-intensive equipment. CNC machines, presses, injection molders, packaging lines and forklifts are major investments.
- Large customers, slow payments. Distributors and big-box buyers often pay on 30- to 90-day terms.
- Raw material swings. Steel, resin, aluminum and food input prices can change quickly.
- Strong collateral. Equipment, inventory and receivables give lenders assets to lend against.
The Best Types of Financing for Manufacturers
| Financing type | Best for |
|---|---|
| Equipment financing | CNC machines, presses, fabrication and packaging equipment, forklifts |
| Business line of credit | Raw materials, payroll and short-term cash flow gaps |
| Term loans & unitranche debt | New production lines, capacity expansion, hiring |
| SBA 7(a) or 504 loan | Buying a facility, major equipment, acquisitions and refinancing |
| Real estate funding | Unlocking equity in a plant, warehouse or facility you own through a cash-out refinance or equity loan |
Manufacturing equipment financing
New equipment can increase output, cut labor costs and win contracts you couldn’t take before. Because the machine secures the loan, lenders are often flexible on terms. NexGen equipment financing runs from $10,000 to $10,000,000, with up to 100% financing and no down payment for qualified borrowers. Qualifying purchases may also be eligible for the Section 179 tax deduction; talk to your tax professional.
Covering long payment terms
If your customers pay on 60- or 90-day terms, a business line of credit (up to $1M for businesses with 12+ months in operation, $10K+ monthly revenue and a 650+ credit score) bridges the gap until invoices are paid. Revenue-based financing, starting at a 500 credit score, is another option.
SBA loans for facilities and major equipment
SBA 504 loans go up to $5.5 million for major fixed assets like buildings and heavy equipment, with long fixed-rate terms and down payments often around 10%. SBA 7(a) loans go up to $5 million and can cover equipment, working capital and buying another business.
How to Get the Best Manufacturing Financing
- Know your cash conversion cycle. Show lenders how long cash is tied up and how financing bridges the gap.
- Keep receivables aging current. A clean accounts receivable report supports a line of credit application.
- Bring purchase orders and contracts. Signed orders and customer contracts show where repayment comes from.
- Show the payback on new equipment. Explain the added capacity, labor savings or new contracts the machine will bring.
- Get equipment quotes first. Vendor quotes with make, model and price speed up approval.
- Maintain clean financial statements. Manufacturers seeking larger amounts are often asked for a balance sheet and P&L.
- Compare offers. Look at total cost, payment schedule and collateral. See how we compare offers.
What Lenders Look for in a Manufacturer
- Time in business and industry experience
- Revenue, gross margins and customer concentration
- Personal and business credit
- Accounts receivable aging and customer credit quality
- Equipment, inventory and other collateral
- Backlog, purchase orders and contracts
- Financial statements and tax returns for larger requests
Common Questions Manufacturers Ask
Can I finance used manufacturing equipment?
Usually, yes. Lenders will ask for the make, model, year, condition and seller. Older equipment may receive shorter terms.
How do I fund a large order before the customer pays?
A line of credit can cover materials and labor until the customer pays for the finished order. Bring the purchase order so lenders can see the deal.
What if one customer is most of my revenue?
Customer concentration is a common lender concern. Strong customer credit, long relationships and signed contracts help offset it.
Can I use an SBA loan to buy my building?
Yes. If your business occupies at least 51% of an existing building, SBA 504 and 7(a) loans can finance the purchase with long terms.
Can a manufacturer with lower credit get financing?
With a 500 to 649 credit score, revenue-based financing is the main option, since it leans on sales more than credit. Most other NexGen programs, including equipment financing and lines of credit, require 650+, and SBA loans require 700+. Below 500, NexGen's business credit guidance can help you understand your credit profile and build toward approval.
How fast can a manufacturer get funded?
Many NexGen programs approve in 1 to 24 hours. SBA loans and real estate funding take longer because of appraisals and documentation.
Get Your Manufacturing Business Funded with NexGen
- Equipment financing from $10,000 to $10,000,000, with up to 100% financing for qualified borrowers
- Lines of credit and revenue-based financing for long payment cycles
- Term loans, SBA loans and real estate funding for growth, from $10,000 to $20,000,000 across programs
- Nationwide service, from our office in Hoboken, New Jersey
This article is for general informational purposes only and is not financial, legal, or tax advice. SBA figures come from the U.S. Small Business Administration and NexGen figures from NexGen’s service pages, as of October 2026. Loan terms, rates, and eligibility vary by lender and program and are subject to approval. Availability varies by state.