When you own a small business in the manufacturing industry, it can be difficult to find the funding that you need to get started and to grow bigger. The Small Business Administration is a good place to start when looking for loans for your company because they have many programs designed to help companies just like yours.
Know the Details and Be Able To Explain Them
The more specific details you know about how much money you need and what you need to use it for, the easier it will be to get the loan. This is because lending institutions like to deal with concrete numbers and specifics. Going through the SBA can help you back the loan, but you will still need to apply with both the SBA and a bank.
Provide Information and Collateral
Getting a loan means providing as much information and collateral as the underwriters require. For the manufacturing industry, your collateral could be the building for a real estate loan or unrelated assets for a working capital loan. The type of loan you choose can either be secured, requiring collateral, or unsecured, not requiring collateral, but it is not as easy to qualify for an unsecured loan and it may come with higher interest rates. The information you will most likely need to provide includes your personal and business credit histories, financial information about the property or items you want to purchase and your business plan.
Answer Questions and Practice Patience
Getting a loan is not an easy or quick process. Chances are that you will have to answer many questions that the underwriters have and that it can take months for them to do their due diligence on your application. This means that you will need to know the answers to the questions they are likely to have and be able to quickly produce paperwork. It also means that you will need to practice patience. A good place to start is by running your business plan by a mentor, an attorney for your company or an accountant to see if they can find any holes or missing information before you take your case to the banks.
Getting financing to start a company in the manufacturing industry, or for working capital in an existing company, can be easier than you think with the help of the SBA. You can find many loan programs designed to help find the funding you need, as long as you can provide good information, understand the details of why you want the loan and practice patience.