Getting a Business Loan for Manufacturing Companies

Are you a manufacturing business in need of equipment finance? Look no further. Bizcap offers tailored equipment loans that can provide you with the financial resources you need to acquire the machinery and equipment necessary for your operations.

Manufacturing loans are an excellent financing option for businesses in the manufacturing industry that need access to capital. These loans can be used for a variety of purposes, including purchasing new equipment, hiring additional staff, and expanding operations. This page covers all things related to manufacturing loans and the benefits they offer to your business.

Getting a Business Loan for Manufacturing Companies

Types of Manufacturing Loans

One of the most common types of manufacturing loans is equipment financing. This type of loan is designed specifically to help businesses purchase new equipment. The equipment itself is used as collateral, which means that if the borrower defaults on the loan, the lender can seize the equipment to recoup their losses.

Working capital loans are another type of loan manufacturers are original equipment manufacturers (OEM) can use when deciding on a manufacturing loan. These loans provide businesses with the capital needed to cover day-to-day expenses such as payroll, rent, and utilities. Inventory financing is also available, which provides businesses with the capital needed to purchase inventory. The inventory itself is used as collateral, meaning that if the borrower defaults on the loan, the lender can seize the inventory to recoup their losses.

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One of the biggest benefits of manufacturing loans is that they provide businesses with access to the capital they need to grow and expand. This can be particularly important for small businesses that may not have the resources to invest in new equipment or expand operations on their own. Manufacturing loans typically offer flexible repayment terms, which can be tailored to the specific needs of the borrower. This can include extended repayment periods or variable interest rates.

Manufacturing loans also often come with lower interest rates than unsecured loans, as they are typically secured loans backed by collateral.

With access to capital, businesses in the manufacturing industry can take advantage of new opportunities for growth and expansion, helping them stay competitive in an ever-changing market.

Manufacturing Loans and Taxes

In Australia, there are several tax benefits available to businesses that take out manufacturing loans. Here are a few of the most significant:

Deductible Interest
: the interest paid on a manufacturing loan is generally tax-deductible, which means that businesses can reduce their taxable income by the amount of interest paid on the loan.

“We believe that small businesses should have fast access to the capital they need to grow, and they shouldn’t be limited by antiquated methods of loan approvals.”

- Bizcap

Depreciation: when a business purchases new equipment using a manufacturing loan, they may be able to claim depreciation on that equipment as a tax deduction. This allows the business to spread the cost of the equipment over several years and reduces their taxable income in the process.

Instant Asset Write-off: the Australian Government offers an instant asset write-off scheme that allows businesses to immediately write off the cost of assets they purchase, including equipment financed with manufacturing loans, up to a certain threshold. This can significantly reduce a business’s taxable income in the year the equipment is purchased.

Research and Development Tax Incentive: the Australian Government also offers a research and development tax incentive that provides a tax offset for eligible research and development activities. Manufacturing businesses that take out loans to fund research and development activities may be able to claim this tax offset, reducing their taxable income.

It’s important to note that the specific tax benefits available to a business will depend on their individual circumstances and the type of manufacturing loan they take out. It’s always a good idea to consult with a qualified tax professional to determine the tax implications of any financing decisions.

Manufacturing loans are an excellent option for businesses in the industry that need access to capital to grow and expand. Whether you need to purchase new equipment, hire additional staff, or expand operations, there are a variety of manufacturing loan options available to meet your needs.

Fast Funding for Manufacturing Loans

If you find yourself in a situation where you need finance, lenders such as Bizcap offer SME owners access to the funds they need, within the day.

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FAQs about Bizcap
Business Loans

How soon can I get the funds?

The approval process for a business loan can be surprisingly quick. In as little as three hours, you could receive approval for a business loan. Once we have your application, bank statements, and any other supporting information needed for the business loan evaluation, our team will assess your file within a couple of hours. If everything is in order, we’ll make you an offer for an unsecured business loan.

After you’ve agreed to the business loan offer, the funds will be transferred into your account promptly. Business loans are an excellent financing option for businesses that require funds quickly and without the need for collateral. This fast approval process is one of the main advantages of a Bizcap business loan.

If you need the funds from a business loan even more urgently, just let your Account Manager know, and they’ll fast-track your application. This expedited process will help ensure that your unsecured business loan is approved and disbursed as quickly as possible, allowing you to address any immediate financial needs your business may have. In summary, unsecured business loans can be approved and funded within a matter of hours, providing businesses with a quick and efficient financing solution.

How much can I borrow?

We provide business loans from $5,000 to $2,000,000 and our loan terms vary from 3 to 12 months, with payment terms that are either daily or weekly. The total amount of your loan will depend on the specific circumstances of your business – we consider a variety of factors to determine the health of your business, and lend accordingly.

How does the process work?

We leverage our proprietary technology system and extensive underwriting experience to provide ‘out of the box’ solutions to our customers. This allows us to lend to customers that come from all walks of life and across a multitude of different industries. Once you complete your application (customer details and bank statements), we assess your file. From there, we provide you with an offer. If you’re happy with the loan offer, we can provide you the funds within 3 hours. Please note, you must be in business for at least 5 months, you must have an active ABN and your turnover must be over $12,000 a month (this requirement may be higher for certain industries).

What are our rates and how are they determined?

Each applicant’s cash flow, payment history, and financial strength is considered to determine a risk-adjusted repayment plan specific to that applicant. Payments are determined by factors such as: the amount and consistency of the business’s cash flow; the number of years the business has been in operation; the assets owned by the business; and the proposed use of funds. We charge a fixed fee on the loan which is agreed upon upfront. We do not penalise you for wanting to pay out your loan early either.

What factors affect loan application approval?

Being a cashflow lender our main consideration is your business’ cashflow. However, there are a range of different factors that could impact your business loan approval. These factors include: age of the business (as well as the revenue history); assets and credit history of the business for example. All these factors help us build a comprehensive profile of the applicant that allow Bizcap to determine a businesses ability to repay their business loan.

How are loans repaid?

Loans are repaid through automatic deductions from the business’ bank account. Loans can be repaid either daily or weekly (excluding weekends and holidays).

Will you check my personal finances?

Although the business’ asset-profile and cash-flow are our primary concern, we do review the business’ and owner’s credit reports to identify current judgments, open bankruptcies, tax liens and other factors.

What can I use funds for?

Business loan funding can be used for a variety of purposes to support and grow your business. Here are some common ways in which business owners use loan funds:

  • Working capital: You can use the loan to cover day-to-day operational expenses such as inventory purchases, payroll, rent, utilities, and marketing costs.
  • Equipment and machinery: If your business requires specialized equipment or machinery to operate or expand, you can use the loan to purchase or lease them.
  • Expansion and renovation: If you’re planning to expand your business or renovate your existing premises, a business loan can provide the necessary funds for construction, remodeling, or leasing additional space.
  • Inventory and supplies: You can use the loan to purchase inventory and supplies in bulk, take advantage of discounts, or meet increased demand.
  • Marketing and advertising: Loans can be utilized to fund marketing campaigns, advertising efforts, and promotional activities to increase brand awareness and attract new customers.
  • Technology and software: Investing in technology infrastructure, software systems, or upgrading your existing IT setup can be facilitated by a business loan.
  • Staffing and training: If you’re experiencing growth and need to hire additional employees or provide training for your existing staff, loan funds can support these expenses.
  • Debt consolidation: If your business has multiple high-interest debts, you can use a business loan to consolidate them into a single, more manageable loan with a potentially lower interest rate.
  • Acquiring another business: If you’re looking to acquire another business or buy out a competitor, a business loan can provide the necessary capital for the purchase.
  • Research and development: For businesses involved in research, innovation, or product development, loan funds can be used to finance these activities and bring new products or services to market.

It’s important to note that the specific uses of a business loan may vary depending on the lender and the terms of the loan. It’s recommended to consult with your lender and financial advisors to determine the best use of funds for your business.

Can I repay early?

Yes, you can definitely repay your business loan early. In fact, we encourage early repayment of business loans if it suits your financial situation. Unlike some lenders, we do not penalize borrowers for early repayment of business loans. This means there are no early repayment fees or other charges associated with paying off your business loan ahead of schedule.

Business loans are designed to be flexible and accommodating to the unique needs of businesses. If you know that you only require the capital for a short period – for example, to purchase stock that you’ll sell in two or three weeks – it’s a good idea to let your Loan Specialist know. In such cases, we can arrange an early payment discount for you, making the early repayment of your unsecured business loan even more advantageous.

By repaying your business loan early, you can potentially save on interest costs and improve your business’s financial standing. The flexibility and convenience offered by Bizcap business loans, including the option for early repayment without penalties, make them an attractive financing solution for businesses with varying financial needs and goals.

I have a loan with you, but I need more access to funds, can you help?

Absolutely, we can help you if you already have a business loan with us and need additional access to funds. It’s not uncommon for businesses to require more financial support as they grow or encounter unexpected expenses. If you’ve had a business loan with us for at least seven weeks, you can reach out to your unsecured loan specialist to discuss your options for obtaining additional business loans.

We understand that businesses may have changing financial needs, and we aim to be as accommodating as possible in providing the necessary support through our business loan offerings. Your unsecured loan specialist will evaluate your current financial situation and the performance of your existing business loan to determine if you are eligible for additional funds.

It’s important to remember that taking on multiple business loans should be done responsibly and with a clear understanding of your financial obligations. By carefully assessing your needs and the capacity to manage additional business loans, you can ensure that your business continues to grow and thrive.

In summary, if you have an existing business loan with us and need more access to funds, we are here to help. Contact your unsecured loan specialist to discuss your options for additional business loans, and we’ll do our very best to support your business’s financial needs.

I already have a loan with another lender, can Bizcap help me?

Absolutely, Bizcap can still help you even if you already have a business loan with another lender. It’s not uncommon for businesses to have multiple business loans from different lending institutions. In fact, many of our clients have business loans with other lenders while seeking additional financing options from Bizcap.

Bizcap offers a variety of business loan products and services that can cater to your specific financial needs. Whether you are looking for additional funds to support your business’s growth, manage cash flow, or address unforeseen expenses, Bizcap can provide a tailored business loan solution that complements your existing financing arrangements.

It’s important to carefully assess your business’s financial situation and capacity to manage multiple business loans before taking on additional debt. However, with responsible borrowing and a clear understanding of your financial obligations, having multiple business loans from different lenders can help support your business’s ongoing success and growth.

In summary, Bizcap can indeed help you with a business loan even if you already have a loan from another lender. By offering a range of business loan products and services, Bizcap can provide the financial support your business needs while taking into consideration your existing debt obligations.

What type of Small Business loans does Bizcap offer?

Bizcap offers both unsecured business loans and secured business loans. Loans provided can be used for any purpose, this could include buying a new vehicle or equipment, funding for growth opportunities, launching a new marketing campaign or helping you manage your cashflow. Our loan sizes vary from $5,000 to $2,000,000 with same day funding available to help you get on with business.

Does Bizcap require personal guarantees?

Bizcap may take personal guarantee(s) from directors of corporate borrowers, directors of corporate guarantors and certain individuals.

Is any security required on a Bizcap Small Business loan?

When assessing a loan application, Bizcap generally does not take into account whether a prospective borrower has specific assets to provide as security.

If the loan amount is above $30,000 (or any other figure Bizcap determines from time to time), Bizcap will, under the loan agreement, take a charge over the assets of the borrower and its guarantor(s). Bizcap may register its security interest(s) on the relevant register including the Personal Properties Securities Register and the relevant land interests register. In certain instances, Bizcap may require specific security to be granted over assets. Examples of security (based on loan size and the customer’s individual circumstances) include charges over bank accounts, vehicles or other personal property or caveats over land.

When assessing a loan application, Bizcap generally does not take into account whether a prospective borrower has specific assets to provide as security.

Security and assets are not required for an application regardless of the loan amount.