How to Secure a Business Line of Credit for Manufacturers: Top 10 Strategies

Securing a business line of credit is a cornerstone for manufacturers looking to optimize cash flow, purchase inventory, and invest in equipment without tying up precious working capital. In the manufacturing industry, where expenses can spike unpredictably; from raw-material surges to sudden machine repairs a flexible revolving credit facility is a must have. Let’s dive in and explore ten traditional and non-traditional strategies manufacturers can use to obtain a line of credit tailored to your unique manufacturing needs.

1. Partner with SBA Lenders for Traditional Lines of Credit (Access up to $5M)

The U.S. Small Business Administration (SBA) offers lines of credit through programs like CAPLines, providing up to $5 million with competitive terms for manufacturers.

Low rates & long terms help manufacturers maintain stable financing for operations.

Where It Helps Manufacturers

• Working capital: Cover payroll or supplier payments.
• Inventory: Stock up for production spikes.
• Equipment: Finance machinery upgrades.

Recommended Tools/Resources

• SBA Loan Portal
• Fundera (Affiliate)
• The SBA Loan Book
• SBA CAPLines Explained

Partner with SBA-preferred lenders to streamline approvals—check eligibility first.

2. Explore Non-Bank Lenders for Fast Credit Lines (Approval in 24–48 Hours)

Non-bank lenders like BlueVine and Kabbage offer lines of credit funding in 24–48 hours per the Federal Reserve’s 2023 Survey.

Rapid funding and flexible terms fill urgent cash flow gaps.

Where It Helps Manufacturers

• Cash flow: Bridge slow payment cycles.
• Production: Fund raw materials or overtime.
• Emergencies: Cover equipment repairs.

Recommended Tools/Resources

• BlueVine
• Kabbage
• Non-Bank Financing Basics
• Non-Bank Lending for SMBs

Compare APRs on Fundera to find cost-effective terms.

3. Build a Strong Business Credit Profile (Boost Approval Odds by 50%)

A robust business credit score can raise approval odds by up to 50%, according to Dun & Bradstreet.

Higher credit scores unlock larger lines and better terms.

Where It Helps Manufacturers

• Loan approvals: Secure larger credit lines.
• Supplier terms: Negotiate extended schedules.
• Credibility: Strengthen vendor & lender partnerships.

Recommended Tools/Resources

• Nav (Affiliate link)
• D&B Credit Monitoring
• Business Credit Building
• How to Build Business Credit

Pay suppliers early to boost your score and approval odds.

4. Leverage Invoice Financing as a Credit Line Alternative (Access 80–90% of Invoices)

Invoice financing unlocks 80–90% of receivables within days, per Fundbox.

Access capital tied up in invoices to keep lines running.

Where It Helps Manufacturers

• Cash flow: Pay for materials or labor.
• Growth: Fund new product lines.
• Seasonal: Stock for peak demand.

Tools/Resources

• Fundbox
• BlueVine Factoring
• How Invoice Financing Works
• Cash Flow Strategies

Negotiate shorter payment terms to reduce financing reliance.

5. Work with Community Banks for Traditional Credit Lines (Competitive Rates)

Community banks offer tailored credit lines at lower rates than larger banks, per the ICBA.

Local insights & personalized terms support regional manufacturers.

Where It Helps Manufacturers

• Working capital: Cover daily operational costs.
• Expansion: Fund new production lines.
• Refinancing: Consolidate debt to save costs.

Recommended Tools/Resources

• ICBA Loan Locator
• Lendio (Affiliate link)
• Business Loans 101
• Community Banking Overview

Cultivate relationships with local bankers to improve approval chances.

6. Use Equipment as Collateral for Secured Credit Lines (Lower Rates)

Secured lines of credit backed by manufacturing equipment offer lower interest rates, per the Equipment Leasing & Finance Association (ELFA).

Using equipment as collateral reduces lender risk, securing better terms and lowering borrowing costs.

Where It Helps Manufacturers

• Equipment upgrades: Finance new machinery to boost production.
• Cash flow: Access funds without selling critical assets.
• Production: Maintain operational capacity.

Recommended Tools/Resources

• Crest Capital (Affiliate link)
• Balboa Capital (Affiliate link)
• Equipment Financing 101 – ELFA
• Business Financing Basics – Udemy

Get an appraisal for high-value equipment to maximize your credit limit.

7. Tap into Trade Credit for Supplier-Backed Lines (Non-Traditional Financing)

Negotiating trade credit with suppliers acts as a non-traditional line of credit, allowing manufacturers to defer payments and save 5–10% on material costs, according to the National Association of Manufacturers (NAM).

Trade credit enhances liquidity without formal loans, aligning payments with revenue cycles.

Where It Helps Manufacturers

• Inventory: Delay payments to align with sales cycles and free up cash.
• Production: Fund raw materials upfront to keep lines running.
• Supplier relations: Strengthen partnerships by building trust with vendors.

Recommended Tools/Resources

• Coupa (Affiliate link)
• TradeGecko (Affiliate link)
• Negotiation Skills for Business
• Getting to Yes

Offer early payments for discounts to build stronger supplier relationships.

8. Apply for Industry-Specific Credit Lines from Credit Unions (Tailored Terms)

Credit unions like Navy Federal offer lines of credit tailored for manufacturers, often with lower rates, per the NCUA.

Manufacturer-friendly terms and personalized service align with industry challenges.

9. Optimize Financial Statements for Lender Confidence (Increase Approval Rates)

Well-prepared financial statements, including cash flow projections, balance sheets, and income statements, boost lender confidence—businesses with clear financials are 30% more likely to secure financing, per the SBA.

Accurate statements demonstrate stability, increasing approval odds and obtaining better terms.

Where It Helps Manufacturers

• Loan approvals: Secure larger lines by demonstrating health.
• Credit limits: Unlock higher amounts by proving profitability.
• Trust: Enhance credibility with investors and lenders.

Recommended Tools/Resources

• QuickBooks (Affiliate link)
• Xero (Affiliate link)
• Financial Statements for Small Businesses
• Preparing Financial Statements

Hire a CPA to polish statements and include seasonal production cycle projections.

10. Use Revenue-Based Financing for Non-Traditional Credit (Repay Based on Sales)

Revenue-based financing, offered by Clearco, allows manufacturers to repay as a percentage of sales, per Forbes.

Align repayments with revenue, offering flexibility during lean periods.

Where It Helps Manufacturers

• Growth: Fund new product lines without fixed repayment burdens.
• Inventory: Stock for seasonal demand or large orders.
• Flexibility: Adjust payments based on sales performance.

Recommended Tools/Resources

• Clearco (Affiliate link)
• Fundbox (Affiliate link)
• The Revenue-Based Financing Guide
• What is Revenue-Based Financing?

Use for short-term projects and ensure accurate sales forecasts for favorable terms.

Conclusion

Securing a business line of credit for manufacturers in 2025 demands a strategic mix of traditional and non-traditional approaches tailored to the manufacturing industry. From SBA-backed lines to revenue-based financing, these ten strategies empower manufacturers to access flexible capital to drive growth and stability. Tools like Fundera, BlueVine, and Clearco (with affiliate opportunities) streamline the process, while Manufacturing International provides expert guidance every step of the way.

Start implementing these strategies today to fuel your manufacturer’s success. Visit our affiliate partner page for details on recommended tools and services to support your manufacturing business.

Sources:

• SBA.gov
• Federal Reserve
• National Association of Manufacturers (NAM)
• Equipment Leasing & Finance Association (ELFA)
• Dun & Bradstreet
• Independent Community Bankers of America (ICBA)
• National Credit Union Administration (NCUA)
• Forbes