In the fast-moving world of manufacturing, waiting weeks to months for manufacturing funding from a traditional bank loan is not a viable option for many businesses. Whether it’s replacing a vital piece of equipment, funding a large order, or managing payroll during a downturn, manufacturers like you, often need cash—and they need it fast. That’s where non-bank loans come in.
This guide explores several strong manufacturing funding candidates for non-bank loan options for manufacturers. We’ll break down each type of funding, when it makes sense, how fast you can access it, and which providers are best positioned to help. We’ll also share links to partners to help you act fast and smart.
Why Your Manufacturing Business Might Need Quick Funding
Manufacturing has always been capital-intensive, but today’s demands require quite a bit of agility. From navigating supply chain disruptions to investing in automation, quick access to cash is vital for operational efficiency.
According to the National Association of Manufacturers, 73.5% of manufacturers cited access to capital as a significant challenge going into 2025. With demand fluctuating and supply chain pressures still high, financial flexibility can make or break a business.
When Quick Capital Funding Is Essential:
- Emergency equipment repairs
- Hiring and training staff for new contracts
- Buying raw materials in bulk for cost savings
- Surviving cash flow gaps during slow-paying customer cycles
Traditional bank loans often require:
- Extensive documentation
- Excellent credit
- Collateral
- Long approval times
For many small and mid-sized manufacturers, that simply won’t cut it. Enter: non-bank lenders.
Understanding Non-Bank Lenders: A New Era of Manufacturing Funding
Non-bank lenders are financial institutions or platforms that operate outside the traditional banking system. Think online lenders, fintech companies, private investors, or peer-to-peer networks. Unlike banks, they’re not bound by the same regulations, allowing them to offer faster, more flexible business financing solutions tailored to manufacturers.
The rise of non-bank lending is no fluke. A Forbes analysis reported that non-bank loans grew by 20% in 2024, driven by demand for quick capital among small and mid-sized businesses. For manufacturers, this means options like invoice financing, equipment loans, or merchant cash advances—each designed to address specific cash flow needs. Benefits include approvals in as little as 24 hours, minimal paperwork, and eligibility even with less-than-perfect credit.
Ready to explore?
What Are Non-Bank Loans?
Non-bank loans are financial products offered by institutions other than traditional banks. These include online lenders, fintech platforms, private lenders, and alternative finance providers. They typically offer faster approvals, more flexible qualification requirements, and innovative funding structures.
Bank vs. Non-Bank Loan Comparison:
| Feature | Traditional Bank Loan | Non-Bank Loan |
|---|---|---|
| Approval Time | 2–8 weeks | 1–5 business days |
| Credit Score Requirement | 680+ | 550–600+ |
| Required Collateral | Often required | Varies (many unsecured) |
| Flexibility | Rigid | High |
| Best for | Established companies | Small to mid-sized manufacturers |
1. Equipment Financing
Best for: Replacing or upgrading machinery
Equipment financing allows you to borrow funds specifically for purchasing new or used equipment. The equipment itself usually acts as collateral.
Pros:
- Keeps cash flow intact
- Tax benefits via depreciation
- Fast approval through specialists
Top Non-Bank Provider: Crest Capital – Known for competitive rates and dedicated manufacturing programs.
Manufacturing International Tip: Many providers offer pre-qualification with soft credit pulls.
2. Invoice Factoring / Accounts Receivable Financing
Best for: Solving cash flow gaps from slow-paying customers
Rather than waiting 30–90 days for payment, you can sell outstanding invoices to a factoring company at a small discount. You get immediate cash, and they collect from the customer.
Pros:
- No need for strong credit
- Speedy funding (often same-day)
- Scales with business growth
Top Non-Bank Provider: BlueVine – Offers flexible factoring programs tailored for small and mid-sized manufacturers.
Did You Know? A 2024 study from IBISWorld reports that U.S. invoice factoring services have grown 4.7% annually over the past five years.
3. Working Capital Loans from Online Lenders
Best for: Day-to-day operating expenses
Online lenders offer unsecured short-term loans for a wide range of business needs. These are generally repaid within 6–24 months and don’t require physical collateral.
Pros:
- Easy application process
- Approval within 24–72 hours
- No collateral needed
Top Non-Bank Providers:
Stat Watch: Over 56% of small businesses in the U.S. now prefer online lenders for working capital needs, according to the Federal Reserve.
4. Line of Credit
Best for: Flexible, recurring capital needs
A business line of credit allows you to draw funds as needed up to a set limit and only pay interest on the amount used.
Pros:
- Pay only on what you use
- Reusable access to funds
- Ideal for fluctuating costs
Top Non-Bank Provider: Fundbox – Offers fast decisions and revolving credit lines.
Bonus: Many manufacturers use lines of credit to cover project-based labor or seasonal raw material purchases.
5. Merchant Cash Advance (MCA)
Best for: Fast cash with strong revenue but poor credit
An MCA is not a loan but a cash advance based on future revenue. Lenders take a percentage of daily sales until the advance is repaid.
Pros:
- Lightning-fast funding
- No fixed monthly payments
- Ideal for urgent needs
Top Provider: Rapid Finance – Offers MCAs tailored to industrial businesses.
Caution: While convenient, MCAs can be expensive. Always compare cost-per-dollar and APR equivalents.
Key Criteria When Choosing a Non-Bank Loan
Before signing on the dotted line, assess your options based on the following criteria:
- Annual Percentage Rate (APR): Total borrowing cost, including fees
- Speed of Funding: How quickly you need the money
- Loan Terms: Repayment frequency, loan length, early payoff penalties
- Qualification Requirements: Minimum revenue, time in business, credit score
- Customer Reviews: Research each provider’s reputation via trusted review sites like Trustpilot or NerdWallet
Manufacturing International Tip: Use aggregators like Lendio or Fundera to compare multiple offers at once.
How to Boost Your Approval Odds for Your Non-Bank Financing
Non-bank lenders are flexible, but preparation still matters. Here’s how to improve your chances:
- Organize Financials: Have your last 6–12 months of bank statements, tax returns, and a basic business plan ready.
- Know Your Numbers: Be clear on how much you need and how you’ll use the funds.
- Build Your Digital Presence: Some lenders assess your company’s online credibility.
- Improve Your Credit Profile: Pay off small debts and correct reporting errors if possible.
Manufacturing International Final Thoughts: The Right Funding at the Right Time
Quick capital can be a game-changer for manufacturers—but choosing the right non-bank funding partner is critical. Whether you’re expanding operations, responding to a crisis, or just need flexibility, there’s a loan product out there for you.
To recap, here’s a quick look at your best options:
| Loan Type | Best For | Top Provider |
| Equipment Financing | New or replacement machinery | Crest Capital |
| Invoice Factoring | Solving cash flow gaps | BlueVine |
| Working Capital Loan | Short-term operational needs | OnDeck, Credibly |
| Line of Credit | Flexible, ongoing expenses | Fundbox |
| Merchant Cash Advance | Fast cash with strong sales | Rapid Finance |
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