Wondering how you can prepare for the next phase of growth while dealing with the economic distractions of 2020 and 2021? Julie Murphy, our VP of Marketing, wrote an article for Fabricating and Metalworking Magazine that discusses just that. Read the outline below, or access the full article - Financing for the Next Stage.
Machine shops must invest in technology to compete; however, cutting-edge technologies become obsolete sooner, and with a low demand on the secondary market, lenders are reluctant to finance your growth plans. Thankfully, there are a variety of financing mechanisms to consider.
Let’s face it: the last 18 months have been a roller coaster ride. And while the circumstances have been less than ideal and exceptionally unpredictable, the future of manufacturing is as bright as ever. It’s time to look forward and plan for the next stage of your business.
Regardless of your current business stage (startup, growth, maturity, renewal), you need money to move the business forward and remain competitive in today’s environment. With the current labor shortages and uncertainty and increasing wage demands, technology is becoming a key factor to remain competitive.
As you consider what equipment and technology you need, it’s wise to understand the goals you are trying to achieve. What will make your business more competitive or operationally sound?
To help achieve your goals, you can employ a number of technologies (or combination of technologies). Some of these include:
- Process or Product Capability Expansion
- Employee Training and Development
It can be difficult to obtain financing for software, new technology and additive equipment or even retooling your existing plant. Rapid development leads to faster obsolescence and smaller demand on the secondary market, making lenders more reluctant to finance these types of improvements. But there are a variety of financing options available to manufacturers if you have the right lending partner.
- Equipment Loans
- Working Capital Loans
- Line of Credit
- Asset Based Loans
Paycheck Protection Program Forgiveness
The Paycheck Protection Program (PPP) officially ended on May 31, 2021, and businesses can no longer apply for loans under the program. However, if your company received a PPP loan, you can apply for PPP loan forgiveness because the program allows businesses that received PPP loans to have the loans forgiven instead of having to repay the proceeds of the loan, provided you complied with eligibility and performance restrictions. For additional details on the PPP loan, refer to the full article.
This article first appeared in Fabricating and Metalworking Magazine, Aug. 2021.