Manufacturing businesses with $15,000+/month in average bank deposits and a 500+ FICO can access $25,000 to $500,000 via MCA. Approval by the funding provider after review, funded once the provider approves your file. Repayment is a daily holdback percentage from bank deposits, with no fixed monthly payment and no equipment or real estate pledge.
The Manufacturing Cash Flow Problem
Manufacturing creates a structural cash flow gap that virtually every manufacturer faces: costs happen now, revenue comes later. Specifically:
- Raw materials must be paid upfront, or within 30 days, before production starts
- Labor and overhead are continuous: payroll runs weekly regardless of when customers pay
- Commercial customers pay on net-30/60/90 terms, sometimes longer for larger retailers and distributors
- Large orders amplify the gap: a $500,000 purchase order requires $150,000+ in materials before any revenue arrives
Traditional bank lines of credit and equipment loans don't solve this quickly enough. MCA fills the gap: lump-sum capital deployed once the provider approves your file, repaid as commercial payments clear through your bank account.
Illustrative Example: Manufacturing Order Float
Illustrative example only, not a record of a specific named customer or a guaranteed outcome. Actual approval amount, timeline, and rate depend on your own bank statements and profile.
A custom metal fabricator wins a $280,000 commercial contract from a distribution company, payable net-60. Materials and subcontracted machining cost $95,000 upfront. Weekly payroll for 8 employees over the 6-week production period is another $52,000.
Problem: $147,000 in costs before the contract pays. The fabricator can't take on two more contracts simultaneously without capital.
MCA solution: A $130,000 advance, once the provider approves the file, to cover materials and payroll. When the $280,000 payment clears in 60 days, the advance repays in 2-3 weeks from deposit activity. Net result: the fabricator took the contract, covered costs, and had capital to pursue the next order.
Based on the illustrative fabricator example above. Actual timing depends on the customer's real payment terms and how fast materials and labor are actually spent.
Best Uses for Manufacturing Working Capital
MCA vs. Invoice Factoring for Manufacturers
| Factor | MCA | Invoice Factoring |
|---|---|---|
| What you use it for | Pre-order capital (before job starts) | Post-invoice capital (after job invoiced) |
| Requirement | 6 consecutive months bank statements | Existing outstanding invoices |
| Best for | Funding new orders before they start | Accelerating payment on existing invoices |
| Customer notification | Not required | Often required (factor collects from customer) |
| Speed | Fast, set by provider | Verification-dependent |
| Relationship impact | None | Customer pays factor, not you; some clients prefer not to deal with factors |
Many manufacturing businesses use both: factoring for collecting on existing AR faster, and MCA for pre-order working capital to take on new contracts before current AR is collected.
Funding Amounts by Revenue Level
| Monthly Deposit Average | Typical MCA Range | Factor Rate |
|---|---|---|
| $15,000-$40,000 | $12,000-$55,000 | 1.20-1.35 |
| $40,000-$100,000 | $35,000-$140,000 | 1.18-1.30 |
| $100,000-$250,000 | $80,000-$340,000 | 1.15-1.26 |
| $250,000+ | $200,000-$500,000 | 1.13-1.22 |
Ranges from the table above, for orientation only. Your own average deposits and bank statement history determine the actual amount and rate a provider offers.
Qualification Requirements
Fund Your Manufacturing Business
No collateral. No hard pull during initial review. Review begins as soon as your file is complete.
Check My RateFAQ
- My manufacturing company's deposits are lumpy because clients pay large invoices sporadically. Will that hurt my approval?
- Lumpy deposits from large B2B payments are common in manufacturing and underwriters are familiar with the pattern. They look at the 6-month total and average, not daily consistency. A manufacturer with three large $60,000 deposits per month is evaluated the same as one with daily smaller deposits totaling $60,000/month. Include an explanation of your customer payment terms if helpful.
- Can I use MCA alongside an existing SBA loan or equipment loan?
- Possibly. It depends on whether your existing loan agreement has debt restriction covenants. MCA is a purchase of receivables (not a traditional loan), which some SBA agreements permit. Review your loan covenants with your existing lender or attorney. The MCA underwriter will also see existing debt service in your statements and factor it into the available advance amount.
- What if I need funding to fulfill a government contract?
- Yes. Government contract work qualifies. Government contracts typically have very reliable (if sometimes slow) payment. The consistent receivable supports MCA repayment well. Some government contracts also have progress billing provisions. Factoring (if the government allows assignment of receivables) or MCA both work for government contractors: MCA if you need pre-order capital, factoring if you have pending progress invoices.