Many manufacturing companies have a seasonal business cycle where sales drastically grow during a set time of year whether it’s the traditional holiday season, the warm summer weather or the cold of winter. If you manage one of these manufacturing companies, you know it is never too early to prepare for the revving up of production that this seasonal boom usually brings.

Manufacturers of these popular products, from the hottest holiday toys and gadgets to winter scarves and summer swimwear, know their season is their most profitable time of year. Failure to plan for success for this cyclical increase could negatively impact the company for months to come and even cause a business to go under.

Invoice Factoring Fits the Feast-or-Famine Manufacturing Cycle

Because seasonal planning is so critical to the success of many in manufacturing, it is a good idea to take a look now at financing options available, including textile loans and manufacturing factoring. Also known as factoring receivables or account receivables factoring, the process is tailor-made to fit the manufacturing industry with its natural ebbs and flows of business.

So let’s say you are tasked with preparing your company for its seasonal growth period. You need to make sure you have cash on hand to cover payroll for an added shift of seasonal factory workers needed to meet ramped up production demands. Or maybe you need to upgrade or rent additional equipment to support increased production or change suppliers due to cost or inefficiencies. In these instances, this is where factoring would be a great short term financing option for you.

Get Cash in Hand with Factoring Receivables to Cover Growth

Whatever the case may be, you certainly do not want to run out of money during this critical time, and the right manufacturing financing company can make sure this never happens. Because account receivables factoring works based on your existing invoices or orders, it can give you the cash right away so you don’t have to wait to get paid by your customers. The company will do the waiting for you.

Though invoice factoring companies charge a percentage, usually 3-8 percent, for getting you the cash you need in less than 48 hours, you are able to inject this cash directly into your company’s production efforts almost immediately. In the end, the payoffs of invoice financing tend to outweigh the costs. After all, if you are in the manufacturing business, nothing is more costly than weak sales during a peak growth period because of failure to cover the overall costs of production.