🔧 Boost cash flow for raw materials, labor, equipment, and overhead in a capital-heavy industry.
⚙️ Finance equipment upgrades like CNC machines or welding tools to improve efficiency.
🚚 Handle large contracts or bulk orders without straining your working capital.
💳 Flexible options available—from equipment financing to business lines of credit and MCAs.
💼 Even bad credit is OK for many financing products (except SBA loans).
🏗️ SBA loans are available but require strong credit and more paperwork.
⏱️ Faster funding from alternative lenders vs. traditional banks with strict criteria.
📈 Smart financing = growth, improved credit, and long-term business scalability.
The metal manufacturing industry plays a vital role in supporting nearly every sector of the economy, including construction, automotive, aerospace, and infrastructure. However, staying competitive in this high-demand, capital-intensive industry requires ongoing investments in equipment, labor, inventory, and facility upgrades.
Between rising raw material costs, long customer payment cycles, and increasing labor expenses, metal fabricators and manufacturers often face cash flow challenges. Fortunately, small business loans for metal manufacturing companies can help bridge these financial gaps and provide the working capital needed to keep operations running smoothly and scale strategically.
Whether you’re looking to purchase new CNC machines, expand your production line, or stabilize your cash flow during slower seasons, the right financing solution can help your business grow and remain resilient.
For most metal manufacturing companies, growth is not produced by a single, massive investment or jump in demand. It is a gradual process with many stages, almost like a giant to-do list. The business must consistently acquire new resources and implement new strategies to improve efficiency and stabilize cash flow. This doesn’t just happen overnight or even over the course of one season. These changes are made at an almost sporadic pace, occurring at different times of the year. Small businesses with this type of spending pattern are often recommended to choose a business line of credit as their additional funding option. With a business line of credit, you can cover your desired expenses when you need to and keep your customers satisfied, regardless of the hurdles that may be coming your way.
Here are four valuable uses for a business line of credit in the metal manufacturing industry:
Equipment tends to break or go out of date. You don’t have to be in the manufacturing business to understand that the latter scenario’s timeline is definitely a lot shorter these days. But manufacturers cannot afford to lose productivity or fall behind schedule because they don’t have the proper equipment to meet today’s standards for efficiency. You can avoid such misfortunes by investing in preventative maintenance or simply replacing the pieces of equipment vital for maintaining the quality of your products. Up-to-date equipment also decreases the risk of liability cases or other related lawsuits.
When you have an equipment financing option like a business line of credit at your disposal, you can replace equipment before it begins inhibiting productivity. You may have heard that equipment upgrades are eligible for state and federal tax rebates. This depends on the kind of upgrade, so you should speak to your accountant before assuming you’ll be able to write off your desired expense.
If your company delivers products on a truck, you should certainly explore different shipping and handling options. Think back to how many times you’ve had something mailed to you in a box that was way too big. Well, had that company chosen a more appropriately-sized box, it would have been able to pack more boxes onto a truck and probably save a lot of money on gasoline. Odds are, your business does not package and deliver the same quantities of products as a popular online retailer. But there are plenty of investments you can make to save on shipping and handling costs. You could purchase a new truck that is larger or better on gas or buy cheaper packing materials. Even small changes to your shipping process could have a major impact on your annual shipping costs.
One of the most common functions of a business line of credit is covering payroll. Manufacturing companies are constantly expanding their teams. In addition to increasing the workforce on the factory floor, they must seek new salespeople and marketers to attract new customers. Unlike other industries, virtually every new employee of a manufacturing company is hired to increase efficiency or productivity in a relatively short period of time. A business line of credit is designed for short-term investments. So, until they begin to finance themselves, you can use a business line of credit to cover your new employees’ compensation.
The companies that are best suited for a business line of credit are frequently prone to fluctuations in revenue. A strong busy season will be followed by a potentially hazardous slow season. With a business line of credit, you can ensure the likelihood of a strong busy season and avoid having to lay off employees when business slows down. Many UCS clients use business lines of credit to order bulk quantities of materials to handle an upcoming surge in demand. They might use their funds to launch a marketing campaign that tells their customers that they can complete orders at higher speeds than their competitors.
A big reason for a manufacturing company to avoid layoffs during the slow season is the time it takes to train new employees. Even the most attentive training process cannot guarantee that a manufacturing worker will be up to speed by the time demand picks up. These orders must be filled promptly to revitalize cash flow, so you can’t have new employees slowing down the rest of the team. A business line of credit allows you to cover payroll during slow periods and keep your experienced employees on staff. Work will flow smoothly when those orders start coming in.
Tumultuous demand often results in tumultuous cash flow, making it very difficult to be approved for any small business loan. However, companies like United Capital Source are well-aware that in some industries, extreme ebbs and flows in cash flow are an inevitability, as opposed to a reflection of the business owner’s intelligence or work ethic. We regularly work with companies that require extra working capital to carry them over speed bumps leading into busy periods. The more profitable these busy periods are, the smaller the speed bumps will be. Uncontrollable factors shouldn’t stop you from accessing a business line of credit. They won’t if you choose a business financing company that is not deterred by the reality of cash flow.
United Capital Source has access to numerous business loans geared towards metal manufacturing companies’ various financing needs. Popular functions include upgrading machines, purchasing equipment, investing in new technology, or increasing staff. But business loans don’t necessarily have to be used for revenue-generating activities. We’ve worked with metal manufacturing clients looking to cover an emergency, consolidate other debts or pay taxes without impacting cash flow.
One of our specialties is facilitating the means to make large purchases with a single, upfront payment. Unlike the fixed payments of a lease, we can negotiate a payment structure that accounts for upcoming revenue fluctuations.
Speaking of fluctuations, working capital loans are typically best for neutralizing sudden changes in demand or increases in operational costs. On the other hand, a business term loan might be better for financing resources related to larger projects that have several phases: research, development, and completion. Borrowing amounts and terms are based on the number of months or even years that will go by before a return on investment (ROI) is produced.
A business line of credit is similar to a standard working capital loan but better suited for companies that regularly deal with unforeseen expenses. Planning for the unexpected is a crucial part of running a manufacturing company. With a business line of credit, you have a safety net that can be accessed at any time as long as you consistently pay off the balance.
For some business loans, the application and repayment processes are tailored for excessively busy borrowers. We are well-aware that, much like an auto shop, owners of metal manufacturing companies split their time between the shop floor and the office. They don’t have time to navigate confusing terms or wait four days to have a question answered. Rest assured: Your relationship with UCS will only make your day-to-day routine less stressful and never take you away from your most important responsibilities. Apply now to see how much you qualify for!
Metal Manufacturing Business Loans are specialized financing solutions designed to support the unique operational needs of metal fabricators, machine shops, foundries, and other businesses involved in shaping, cutting, and assembling metal products.
These loans provide access to working capital that can be used to purchase raw materials, upgrade or repair equipment, manage payroll, cover overhead costs, or expand production capacity. Whether you manufacture structural steel components, precision-machined parts, or custom metalwork, this type of financing can help ensure your business remains competitive in a capital-intensive and time-sensitive industry.
Metal manufacturing business loans come in the form of:
Metal manufacturing business loans provide fast and flexible access to capital, which can be used for essential expenses such as raw materials, machinery upgrades, labor, and facility maintenance. Unlike traditional bank loans that can take weeks or months to process, alternative lenders like United Capital Source offer streamlined application processes and faster approvals, often within 24 to 48 hours.
Working capital loans enable metal fabrication businesses to secure the necessary funds for ongoing operations. Equipment financing is ideal for upgrading or replacing manufacturing equipment. Business term loans offer a lump sum of capital to address a specific business need. A business line of credit provides a revolving credit line to meet business needs as they arise.
This type of financing is especially valuable when traditional banks fall short due to strict credit requirements, collateral demands, or lengthy approval processes. We work with metal manufacturers of all sizes to provide flexible options that align with your cash flow and production cycles.
Once approved, you can use the funds to meet a variety of production-related needs, including fulfilling large orders, restocking steel inventory, and financing new welding or CNC equipment. Repayment terms vary based on the type of loan, your revenue, and your business credit profile. Some options, like short-term loans or lines of credit, allow you to repay in smaller, more frequent installments that align with your cash flow.
At United Capital Source, we understand the cyclical nature and high overhead of metal manufacturing businesses. That’s why our lending partners offer loan products that are both flexible and responsive to your industry’s operational demands.
| LOAN TYPES | MAX AMOUNTS | RATES | SPEED |
|---|---|---|---|
| Merchant Cash Advances | $7.5k – $1m | Starting at 1-6% p/mo | 1-2 business days |
| SBA Loan | $50k-$10m | Starting at Prime + 2.75% | 8-12 weeks |
| Business Term Loan | $10k to $5m | Starting at 1-4% p/mo | 1-3 business days |
| Business Line of Credit | $1k to $250k | Starting at 1% p/mo | 1-3 business days |
| Receivables/Invoice Financing | $10k-$10m | Starting at 1% p/mo | 1-2 weeks |
| Equipment Financing | Up to $5m per piece | Starting at 3.5% (SBA) | 3-10+ business days |
| Revenue Based Business Loans | $10K – $5m | Starting at 1-6% p/mo | 1-2 business days |
Business loans for metal manufacturing offer a range of advantages that help companies maintain efficiency, meet demand, and support long-term growth and development. One of the most significant benefits is improved cash flow management. With the rising costs of raw materials, such as steel and aluminum, along with the need to pay skilled labor and invest in high-performance machinery, having access to consistent working capital enables manufacturers to maintain smooth operations without disruption.
These loans can also help metal manufacturers capitalize on time-sensitive opportunities, such as taking on larger contracts or fulfilling high-volume orders that require upfront investment. Financing enables businesses to purchase materials in bulk at lower prices, reduce production delays, and maintain a steady supply chain. Additionally, access to capital facilitates the upgrade of outdated machinery, enhances automation, and increases production efficiency—key factors for staying competitive in a fast-paced and precision-driven industry.
Another advantage is the flexibility in loan structures and repayment terms. Unlike traditional financing, which often comes with rigid requirements, alternative lenders offer customized solutions that align with your revenue cycles. Whether you need funds for a short-term project or a long-term expansion, business loans tailored to metal manufacturing can provide the agility and financial strength your company needs to thrive.
While business loans offer valuable benefits for metal manufacturing companies, they also come with potential drawbacks that should be carefully considered. One of the primary challenges is cost. Some financing options, especially those designed for fast access or businesses with lower credit scores, may come with higher interest rates or shorter repayment terms. This can increase your monthly financial obligations and affect long-term profitability if not properly managed.
Another consideration is the risk of overleveraging. In an industry that requires frequent investment in equipment and inventory, it can be tempting to rely heavily on borrowed capital. However, taking on too much debt can strain your cash flow and limit your ability to handle unexpected costs or downturns in demand. It’s also important to note that not all lenders are familiar with the complexities of the metal manufacturing industry, which may lead to loan offers that aren’t well-suited to your production cycles or business model.
Finally, the approval process—even with alternative lenders—may still require a minimum level of revenue, time in business, or documentation. While easier than working with a traditional bank, some metal manufacturers may still face difficulty qualifying for the best rates or highest funding amounts without a solid financial foundation.
Pros:
Cons:
The amount of paperwork required depends on the product you choose. Funds can be approved and distributed for most products within 1-3 business days. Here’s how to apply:
The first step is choosing the most sensible solution to the problem at hand. This should require some research, as each product is designed for different types of expenses and cash flow cycles. Are you looking to cover a short-term or long-term expense? Is demand expected to increase or decrease in the coming months?
Considering the funds’ purpose will also help us determine the correct borrowing and terms for your needs.
Here are the documents and information required for Metal Manufacturing Business Loans:
SBA Loans require additional documents and information, such as financial statements. To learn what’s needed for the SBA-backed loans, visit our SBA Loan page.
You can begin the application process by calling us or filling out our one-page online application. Either way, you’ll be asked to enter the information from the previous section along with your desired funding amount.
Once you apply, a representative will contact you to explain the repayment structure, rates, and terms of your available options. This way, you won’t have to worry about any surprises or hidden fees during repayment.
If you’re approved, we’ll contact you within 24 hours. After closing, funds for most business financing products should appear in your bank account within 24 hours to one week.
Your business loan isn’t just a way to get financing for your business. It’s also an excellent opportunity to start building (or improving) your credit.
Regardless of the type of business loan you get, make all your required payments on time and in full. If you get a business credit line or another form of revolving credit, keep your balance below the credit limit.
Consistently making your business financing payments on time and in full will positively impact your credit. And that means preferred rates and terms when you next need business financing.
If your application is declined, it’s possible that you applied for the wrong product to meet your cash flow needs. We would likely recommend a different product with a less hazardous repayment structure in this case.
Your application might also be declined if it is determined that you cannot afford to take on more debt at this time.
If your credit score is holding you back from accessing financing, consider working with a reputable credit repair service to raise your scores.
Metal manufacturers often need small business loans to maintain steady operations, keep net profits consistent, and stay competitive in a capital-intensive industry. These businesses regularly face high upfront costs for raw materials, equipment maintenance, and utility expenses. Business financing helps cover these essential needs, allowing manufacturers to take on larger contracts or invest in production improvements without interruption to their cash flow.
Metal manufacturing businesses often need funds for payroll during training periods for new employees. Hiring and onboarding skilled labor can take weeks, and wages must still be paid even if productivity is temporarily reduced. With rising wages, it can be challenging to attract and retain top talent. Loans help bridge that gap, ensuring your workforce is supported during crucial periods of ramp-up and has the funds to stay afloat during slow periods.
Additionally, small business loans can be utilized to finance new machinery, upgrade outdated technology, expand facilities, manage seasonal demand fluctuations, and purchase materials in bulk to lower costs. With the right financing solution, metal manufacturers can smooth out revenue fluctuations and scale strategically.
Both traditional and alternative lenders offer business loans to metal manufacturers, but the options vary significantly. Banks and credit unions may provide lower interest rates and longer repayment terms, but they often require strong credit, extensive documentation, and a lengthy approval process. Many metal manufacturers struggle to secure necessary funding due to their perceived risk by traditional lenders.
Alternative lenders, on the other hand, offer more flexible loan programs with faster approval times and less stringent qualifications. These lenders are more likely to understand the unique cash flow challenges and capital needs of metal manufacturing businesses, making them a valuable resource for companies that need quick access to working capital or don’t meet bank lending criteria.
Yes, metal manufacturing businesses can qualify for SBA loans, including popular programs like the SBA 7(a) and SBA 504 loans. These government-backed loans offer competitive interest rates, long repayment terms, and higher borrowing limits, making them ideal for funding equipment purchases, facility upgrades, or working capital needs.
However, the application process can be time-consuming and may require a strong credit history, detailed financial information, and collateral. Businesses that meet the SBA’s eligibility criteria often find these loans to be a cost-effective financing option.
Yes, many financing options are available for metal manufacturers with bad credit. Six of the eight loan products commonly used in this industry are accessible to borrowers with lower credit scores. While you may face higher interest rates and shorter repayment terms due to the increased risk of default, having strong cash flow or valuable collateral—such as equipment or inventory—can help offset the impact of bad credit and lead to more favorable terms.
Some financing options don’t rely on your credit score at all. For example, merchant cash advances are based on your credit and debit card sales volume, whereas accounts receivable factoring assesses your customers’ creditworthiness rather than your own. These options are often well-suited to metal manufacturers that invoice customers or experience steady sales activity.
The only product that typically isn’t accessible with bad credit is an SBA loan. SBA loans offer longer repayment terms, lower interest rates, and higher borrowing limits, but require good credit for approval. However, for other financing solutions, we can tailor your payment schedule and terms to match your production cycles, helping you stay current on all expenses.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
UCS will never communicate with a prospective client on Facebook, Facebook Messenger, or any other type of social media. Further, any email communications will always come from an official UCS email address and not a Gmail, Yahoo, or other email domain. If you believe you have been contacted by someone posing as an employee of UCS, please email [email protected].
