Did you know that a large percentage of American manufacturing is done by companies with well under 100 employees? These manufacturers may employ a smaller number of people, but the economic impact is sizable. If you’re a manufacturer, chances are your primary goal is to boost production. Sometimes doubling sales is the easy part, however doubling production, may not come as easily due to the lack of capital or the ability to borrow the money to meet sales demands quickly.
All too often manufacturers outsource subcomponent production to other countries, because local manufacturers can’t keep up. The issue here isn’t will, expertise, or resources, it’s financing. This outsourcing can conflict with manufacturers who truly want to be a part of the “Made in America” movement.
Fortunately, there’s a solution; invoice factoring. By selling unpaid invoices, cash can be generated immediately to finance larger customers, larger orders, and larger production capacity.
Invoice factoring has several critical advantages for manufacturers:
1. Application approval only takes a few days.
2. Converting outstanding invoices only takes a few hours.
3. The rates are typically between 1% to 4.0%
4. Having cash on hand allows you to purchase raw materials in bulk. Bulk purchasing savings often offsets the cost of invoice factoring. Having more materials on hand and cash flow to pay staff are 2 key pieces to boosting production.
For manufacturers who struggle to increase production just so they can be true to the “Made in America” stamp, Universal Funding has the fastest financing option. Universal Funding has been helping manufacturers and fabricators increase production and revenues for decades. Check us out by calling 1-(800) 405-6035.