A crucial industry for both restaurants and dining establishments as well as consumers is food manufacturing. Having enough capital to run a facility is essential for making sure operations run smoothly. Thankfully, there are several financing options for those in this position, and we’ll be sharing all the choices below.
A conventional business loan through a bank, credit union, or other lender is often the most affordable food and beverage manufacturing choice. The rates start in the low single digits, and there are usually longer terms ranging from three to 30 years. The financing can be used for facility upgrades, real estate, refinancing, and working capital.
An SBA loan has rates and terms similar to a bank loan since traditional lenders provide these loans. The Small Business Administration agrees to cover part of the losses if the manufacturer doesn’t repay the loan. This kind of loan can be used for operating capital, commercial property, and purchasing machinery and equipment.
Alternative financing is a way to get capital without financial documents, credit requirements, and net revenue. Preapproval happens minutes after applying and funding may be available in under a week. These loans have shorter terms than conventional loans. They can be used for capital to help with payroll, advertising, marketing, and expanding a business.
A small business in food manufacturing can choose a cash advance for immediate short-term needs. This doesn’t require excessive paperwork. A merchant cash advance is a good option for those with bad credit who need capital since future revenue is the focus. An ACH or MCA cash advance works well for bad credit financing.
Still not sure which loan is right for your food and beverage manufacturing facility? Northgate Capital Finance can help you decide. Get in touch with us, and we’ll point you in the right direction!