Growth Financing Options Guide
Find the right financing solution for your manufacturing business expansion
Schapira CPA | Manufacturing Growth Resources
Manufacturing Growth Financing Options
Selecting the right financing solution is critical for manufacturing businesses planning expansion, equipment acquisition, or other growth initiatives. This guide helps you navigate the various options available to manufacturers.
Matching Financing to Your Growth Needs
Different growth initiatives often align with specific financing approaches:
Equipment Acquisition
- • Equipment financing/leasing
- • SBA 504 loans
- • Term loans
- • Vendor financing
Facility Expansion
- • Commercial mortgages
- • SBA 504 loans
- • Term loans
- • Mezzanine financing
Working Capital
- • Lines of credit
- • Invoice financing/factoring
- • Revenue-based financing
- • SBA 7(a) loans
New Product Development
- • Government grants/programs
- • Angel/venture investment
- • Crowdfunding
- • R&D tax credits
Market Expansion
- • Term loans
- • Private equity
- • Mezzanine financing
- • Revenue-based financing
Acquisition/Succession
- • SBA 7(a) loans
- • Seller financing
- • Private equity
- • Mezzanine financing
Financing Decision Factors
When evaluating financing options, manufacturers should consider:
Business Factors
- Time in business
- Annual revenue and profitability
- Credit history and score
- Available collateral
- Industry segment and growth rate
- Current debt levels
Financing Factors
- Total cost of capital (not just interest rate)
- Funding timeline needs
- Flexibility and prepayment options
- Covenants and restrictions
- Reporting requirements
- Impact on balance sheet
Browse All Financing Options
Traditional Bank Loans
Term loans or lines of credit from financial institutions.
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SBA Loans
Loans guaranteed by the Small Business Administration, reducing lender risk.
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Equipment Financing
Loans or leases specifically for acquiring manufacturing equipment.
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Invoice Factoring & Financing
Selling accounts receivable at a discount for immediate capital or using them as collateral.
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Business Line of Credit
Revolving credit facility that allows borrowing up to a specified limit.
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Mezzanine Financing
Hybrid financing that combines debt and equity features, subordinate to senior debt.
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Private Equity Investment
Capital investment in exchange for ownership stake in the business.
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Revenue-Based Financing
Funding repaid as a percentage of ongoing revenues rather than fixed payments.
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Government Grants & Programs
Non-dilutive funding from federal, state, or local government programs.
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Vendor/Supplier Financing
Financing arrangements through equipment vendors or material suppliers.
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Crowdfunding & Peer-to-Peer Lending
Raising capital from multiple individual investors through online platforms.
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How to Use This Guide
This interactive financing guide helps manufacturing businesses identify the most appropriate funding options for their growth initiatives:
- Review the overview of financing options and how they align with different growth needs
- Complete the financing assessment questionnaire to receive personalized recommendations
- Compare different financing options using the comparison chart
- Explore detailed information about specific financing types
- Consult with a financial advisor to develop your specific funding strategy
Financing decisions should be made as part of a comprehensive growth strategy, considering both short-term needs and long-term implications.
© 2025 Schapira CPA. This growth financing guide is provided as a resource for growth planning.
For expert guidance on selecting and securing appropriate financing, contact our manufacturing specialists.
