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MANUFACTURING

Keep Production Moving. Financing Built Around Manufacturing.

Asset-based financing built around the demands of manufacturing, from materials and labor to equipment and growth.

FINANCING FOR MANUFACTURERS

Capital That Keeps Production Moving

Manufacturers invest in raw materials, labor, machinery and production capacity throughout the manufacturing cycle. Those expenditures often occur well before finished products are delivered, invoiced and paid for, so even an established, growing business can find its working capital tied up in production.

Great Elm Commercial Finance provides asset-based financing that can help address the resulting capital requirements. Our team evaluates each company's financing needs, available assets and business objectives to structure solutions suited to its circumstances.

Explore Financing Solutions
Glowing glass bottles on a forming line

INDUSTRY CHALLENGES

Navigating the Financial Demands of Manufacturing

Production costs are committed first and customer payments arrive later. The pressures below explain how that timing, and the cost of materials and equipment, affect available liquidity or the ability to fulfill orders.

Seeing where the pressure comes from is the first step toward a financing structure that fits.

Material, labor and production expenses are paid before a completed order is collected. When customers take longer to pay, the gap between spending and collecting widens and can limit the ability to accept additional orders.

Uninterrupted production requires materials and inventory on hand. Supplier requirements, changing material costs and larger orders can tie up substantial capital before finished goods generate revenue.

Machinery replacement, equipment upgrades and added capacity require significant capital up front, competing with the cash needed for day-to-day operations.

A change in lender, ownership or financial performance can leave a manufacturer needing a structure that fits circumstances outside traditional lending parameters.

WHO WE FINANCE

Financing for Established and Growing Manufacturers

Manufacturing businesses have different financing needs as production demands, customer relationships, and business objectives evolve. Great Elm works with companies seeking flexible capital structures supported by their eligible business assets.

Yellow industrial robots on a manufacturing line
  1. 01

    Established Manufacturers

    Businesses with established customer relationships, consistent production and meaningful receivables or productive assets such as inventory, machinery and equipment. They may be looking to strengthen liquidity or replace credit arrangements that no longer fit.

  2. 02

    Growth-Focused Manufacturers

    Manufacturers expanding capacity or customer relationships: accepting larger orders, entering new markets or adding equipment. These opportunities often create capital requirements before the added revenue is realized.

  3. 03

    Manufacturers in Transition

    Companies navigating refinancing, acquisitions or ownership changes. These situations can call for structures that accommodate larger, strategic capital requirements and changing business conditions.

$5MM–$500MM

Typical Annual Borrower Revenue

Financing availability and eligibility depend on the individual transaction, eligible collateral, and underwriting requirements.

$5MM–$30MM

Typical Target Loan Size

A typical target, not a limit. Loan size depends on the individual transaction, eligible collateral, and underwriting requirements.

FINANCING APPLICATIONS

Flexible Capital for Your Manufacturing Priorities

Manufacturing capital requirements extend beyond day-to-day operating expenses. Whether you’re managing customer payment cycles, expanding production capabilities, or navigating a major business transition, the right financing structure can help support your next move.

Sparks from a metal cutting machine

Bridge Production and Payment Cycles

Manufacturers often incur substantial expenses before collecting payment for completed orders. Raw materials, labor, transportation, and overhead must be funded while outstanding customer invoices move through the payment cycle.

Receivables-backed financing can help address this gap by providing working capital supported by eligible outstanding invoices, allowing businesses to maintain operations and respond to ongoing customer demand.

Ledgered Line of Credit

Invest in Equipment and Capacity

New machinery, facility improvements, and expanded production capabilities can create significant upfront capital requirements. Secured financing backed by eligible business assets may provide funding to support operational investment without relying solely on existing cash reserves.

Secured Term Loans

Finance Acquisitions and Business Transitions

Acquisitions, refinancing arrangements, and ownership transitions often introduce financing complexities beyond everyday working capital requirements. Great Elm evaluates the underlying assets, capital structure, and business circumstances to identify appropriate financing opportunities.

Unitranche LoansSecured Term Loans

FINANCING SOLUTIONS

Asset-Based Financing Solutions for Manufacturers

Great Elm offers financing structures designed to address different capital requirements. The appropriate solution depends on your business objectives, eligible collateral, and existing financial obligations.

Ledgered Line of Credit

Revolving financing supported by eligible accounts receivable, helping manufacturers manage working capital needs as customer payments and business activity fluctuate.

Secured Term Loans

Asset-backed term financing supported by eligible collateral, including inventory, machinery, and equipment, for capital investment, liquidity needs, or refinancing.

Unitranche Loans

A combined debt financing structure that can support qualifying acquisitions or capital restructuring that need a streamlined arrangement.

Recent Deals

Financing deals that move businesses forward.

Explore our recent financing transactions and discover how we’re helping businesses access the capital they need to grow and succeed.

See More Deals

FREQUENTLY ASKED QUESTIONS

Manufacturing Financing FAQs

Answers to the questions manufacturers ask most about borrowing against their invoices, equipment and inventory.

Yes. A Ledgered Line of Credit provides borrowing availability based on eligible outstanding customer invoices, which can help manufacturers manage the time between paying production expenses and collecting payment.

Depending on the loan structure and underwriting requirements, eligible inventory, machinery and equipment can support secured financing. Eligibility and valuation are evaluated as part of the lending process.

Financing is based on the assets a business holds rather than on cash flow alone, so availability can follow receivables and other eligible collateral as production moves toward collection. The structure depends on the company's cycle and assets.

Great Elm offers structures that may suit refinancing or a lender transition. Available options depend on the capital structure, collateral, financial condition and refinancing objectives.

Let's Discuss Your Manufacturing Financing Needs

Whether your business needs working capital, additional production capacity or a new financing arrangement, Great Elm can evaluate your objectives and eligible assets.

Contact Our Financing Team

Tell us about your business and what you’re looking to finance. A member of our team will follow up to discuss your needs and potential next steps.