Manufacturing business owners usually have a large overhead of expenses with equipment, raw materials, staff, and real estate. Having working capital is key to meeting the growing demand for products. Clarify provides manufacturing business loans ranging from $10,000 to $5 million, with no collateral required.
Whether you're running a production facility, food plant, or managing distribution operations, Clarify helps you secure fast, flexible funding. Our network of 75+ lenders offers some of the lowest APRs in the market, and funding can arrive in as little as 24 to 48 hours.
Let one of our dedicated loan advisors walk you through the loan application process and help you choose the best loan program to meet your business goals.
This guide covers the best business loans for manufacturers and distributors — comparing loan types, rates, and use cases — to help you secure the right funding for equipment, inventory, and growth.
| Top Manufacturing Business Loans | ||||
|---|---|---|---|---|
| Type of loan | Best for | Collateral required? | Speed | Credit requirement |
| Equipment financing | Purchasing or upgrading machinery | No | 1–2 business days | 550+ credit score |
| Invoice factoring | Unlocking capital from receivables | Invoices used as assets | 1–2 business days | Flexible |
| Short-term loans | Immediate capital needs | No | 1–2 business days | 500+ credit score |
| Business line of credit | Ongoing or seasonal needs | No | 24–48 hours | 50+ credit score |
| SBA loans | Long-term growth with low rates | Typically yes | Several weeks | Strong credit + docs |
| Asset-based lending | Leveraging inventory or equipment | Yes — physical assets | 1–3 business days | Flexible |
Top Loans for Manufacturers and Distributors
Manufacturing businesses often need large amounts of capital to keep production moving. Whether you're investing in new equipment, raw materials, or payroll, here are the top financing options available through Clarify's lending network.
Equipment Loans for Manufacturing: Best for Financing Machinery and Hardware
The success rate of manufacturers has a direct correlation to their equipment. If your machinery breaks down, business will come to a grinding halt. It's also one of the biggest expenses for most business owners.
An equipment loan lets you finance up to 100% of the cost to purchase, upgrade, or repair equipment, including heavy equipment, with no down payments required. Buying new technology or upgrading old machines can improve efficiency and output, which will have a positive effect on your bottom-line ROI.
Invoice Factoring for Manufacturing: Best for Improving Cashflow
Almost every manufacturer has cash flow tied up in unpaid invoices and trade credits at some point. Invoice factoring (also known as invoice financing) lets you get your money up front from a lender by using the unpaid invoices as collateral.
Factoring has an additional benefit: Your personal credit score is not a concern since the lender would instead look at the credit rating of the business that owes you money on the invoices. The factoring process also only takes one to two days.
Short-Term Loans for Manufacturing: Best for Immediate Capital Needs
Term loans provide your business with a lump sum infusion of cash. You get approved by Clarify for a set loan amount at a fixed-rate interest that is paid back over a specified term length. We tailor the loan term to fit your specific business needs to help you achieve your goals.
Interest rates for term loans start as low as 7% and have a term length of up to two years. There is no collateral needed to get approved for a short-term loan through our marketplace. Funds raised with a term loan can be used for any type of business expense.
Business Line of Credit for Manufacturing: Best for Growth Opportunities
In an ideal business scenario, you want to have access to working capital to jump on opportunities, instead of trying to fix emergencies. A business line of credit allows you to withdraw funds from a credit line when needs arise.
A business line of credit is a hybrid financing solution that is between a credit card and a term loan. Clarify approves you for a set credit limit that is always available for you to use for business expenses. You only pay interest on amounts that are utilized, thus being a cost-efficient type of funding.
SBA Loans for Manufacturing: Best for Excellent Credit Scores
SBA loans are provided by lenders approved by the Small Business Administration. They are lump sum loans similar to term loans, with the key difference being that they are partially guaranteed by the federal agency up to 85%. In order to qualify for an SBA loan, you need to have an excellent credit score and go through a lengthy paperwork process. As such, SBA loans are only recommended for manufacturers who are not in urgent need of funding. Clarify connects you with an experienced SBA lender who can guide you through the documentation process and help you get funded faster.
Automotive Manufacturing Loans: Best for Large-Scale Production Costs
Automotive manufacturers face high up-front costs for precision machinery, bulk raw materials, and skilled labor. Delays in production or supply chain issues can quickly impact delivery timelines.
A manufacturing loan gives you access to capital for new equipment purchases, staffing, R&D, and more, without using personal collateral. Clarify offers up to $5M in funding to help you stay competitive in a high-demand market.
Food Production Financing: Best for Fast-Moving Inventory and Compliance
Food and beverage manufacturers deal with perishable inventory, strict safety standards, and constant demand fluctuations. Staying ahead means investing in the right tools and infrastructure.
Use a business loan to buy raw ingredients in bulk, upgrade processing equipment, or meet compliance costs without draining cash flow. Clarify provides fast, flexible working capital loans built for producers.
Asset-Based Lending: Best for Leveraging Inventory or Receivables
Manufacturers often have valuable assets tied up in inventory, equipment, or accounts receivable. Asset-based lending (ABL) lets you tap into those assets to secure working capital.
ABL is ideal for companies with strong balance sheets but inconsistent cash flow or limited credit history. Clarify helps you unlock the value of fixed assets or unpaid invoices to access flexible, affordable funding, without selling equity or taking on high-interest debt.
Benefits of Manufacturing Loans
Manufacturing is a resource-intensive industry that requires constant access to working capital to purchase inventory, upgrade equipment, and hire skilled professionals. Anticipating financial needs in advance is key to meeting your business goals as an owner. Clarify can provide the growth capital needed to keep up with demand.
Here are some reasons you might consider a manufacturing loan:
Covering cashflow shortages. When demand is lower during seasonal trends, a line of credit or term loan can help pay for expenses and keep things running smoothly.
Buying inventory to meet growing demand. Maximize revenue potential by buying bulk inventory for your most popular products. Meet growing customer demand across your distribution channels.
Expanding your operation. Grow your business by opening a new facility, buying more equipment, and hiring more qualified employees.
Research and development of new products. Fund R&D efforts to bring new products to the market. With the economy on an upward trajectory, now is the time to invest in expanding your offerings.
Upgrading manufacturing equipment. Equipment is the lifeblood of running a successful manufacturing company. A business loan makes it easy to purchase new equipment or upgrade aging technology.
Hiring more skilled staff. Hiring highly qualified employees is expensive and comes with overhead expenses. Raising a financing round can cover payroll during slower market conditions.
