Production Finance.


Production Finance.

Production Finance


Production finance is available for companies that do not qualify for purchase order financing because they have an element of work in progress that they need funding for. Production Finance is also a good solution for companies that work with multiple component vendors, which need to work in tandem to produce a finished good.

Production finance is like a manufacturing loan in that the proceeds of the funding are used to purchase raw materials or components, and in some cases to cover labor costs as well. Production financing is also like PO financing in that the client must have a purchase order from a credit worthy customer to be considered. Production finance companies typically look to a factoring company to pay off their funding once the goods are delivered to the customer. Some, but not many production finance companies will also cover the receivables risk and collect payment from the customer.

Production Financing is for companies that are generally healthy, but require additional working capital to get through seasonal issues and large orders. Production finance companies typically do not want to work with companies near failure, as the company needs to produce a finished product in order for the lender to receive repayment. While companies applying for production financing do not need to necessarily be profitable, there has to be a clear path to profitability and financial support from investors and owners.

Production finance deals typically take a little longer to close. Funders will want to visit the company on one or more occasions before committing to a production finance line of credit. These types of facilities are more likely to be funded if the lender has an intimate knowledge of the industry. Production finance companies will often specialize in industries that its owners know best.

Production finance is more expensive than purchase order funding as there are additional manufacturing risks involved. Production finance companies will typically spend a good deal of time underwriting the companies' history in producing the product and what their current production capacities are before approving a manufacturing loan.


Call us now at 855-424-2958 and get on the road to success! Or fax us at (855) 450-0885‚Äč.

Customized Financing Options


Asset Based Lending

Revolving lines of credit up to $20,000,000


Accounts Receivable Factoring

No minimums, up to $20,000,000


PO Financing

Secondary lines of credit for ABL or Factoring


Term Loans

Equipment & inventory facilities


Payroll Funding

Great for staffing & temp agencies

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