U.S.-based manufacturing continues to rise and as a sign of continued economic growth, it doesn’t look to slow down anytime soon. More and more companies are finding it economical to manufacture durable goods here rather than overseas in China.
Growth of local manufacturing has also spurred growth of machine tool sales, the highest in a decade according to a recent survey by Modern Machine Shop. Such rise in sales indicates companies themselves have been purchasing in large numbers machine shop tooling and equipment to either meet its own current growth demands or buy into future growth. By making these bulk purchases in advance when prices are low and competitive, companies can save a lot of money over time.
Purchase Expensive Metalwork Materials with Factoring Receivables
Machine shop factoring from a reputable invoice factoring company can help you get cash you need quickly to purchase large orders of machinery and equipment when prices are low, particularly for high cost metalworking facilities. It is common for companies to use manufacturing factoring to get this cash even before their facilities actually need the equipment. By doing so, companies can ramp up production quickly without having to slow down due to lack of equipment or capacity.
In addition, those in metalworking can take advantage of manufacturing factoring to purchase new, cutting-edge technology that may save costs in the long run and increase productivity. In order to remain competitive, having the latest production equipment becomes more and more important every day. “Doing more with less” remains the mantra for those in this ever-changing sector. By using cash from manufacturing factoring, companies can get the latest equipment sooner and have an edge over competitors.
Factoring Companies Routinely Offer Manufacturing Financing
Manufacturing loans are frequently used to purchase new equipment, meet payroll, expand facilities and more. This is because receiving payment from customers can take more than 30 days yet metalworking and facilities need to have cash available right away to complete its purchases. In fact, financing manufacturing constitutes one of the largest sectors of business for factoring companies.