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Financing Services: Solution to the Manufacturers’ Challenges

Posted On: March 27, 2019 author Paul Kendall

Do you need help from manufacturers financing services?

The manufacturing industry has seen and weathered years of sluggish growth in the past. However, manufacturers still face numerous challenges every day.

Sometimes it’s the rise of new technology that makes your competitors more productive than you are. Other times it’s the breakdown of equipment integral to your production line.

Challenges like these require financial investment. But not all manufacturers can easily afford to shell out the large amounts of money often required to resolve these problems.

Fortunately, there is a solution to this that manufacturers can now use. Nowadays, manufacturers financing services can actually help business owners survive and even prevail over the many challenges they face.
In this blog post, I’ll be discussing how manufacturers financing services can help overcome operational challenges in the manufacturing sector.

Manufacturers Financing Services in Handling Operational Challenges

 

Manufacturers are threatened by the possibility of profit loss every day because of the instability of the market. Cash flow fluctuations are fairly commonplace.

This makes the usual operational costs problematic by themselves. What more the sudden large expenses that are sometimes necessary for continued production -- like the purchase of a new assembly tool after the old one finally gives up the ghost?

This is why manufacturers financing services can be a great help for manufacturers. Equipment financing companies can provide solutions for business owners that can help them get a handle on their operating budgets.

Before we go into those solutions, though, let’s talk first about what challenges manufacturers have to face every day.

Challenges Faced by the Manufacturing Industry

 

As mentioned earlier, manufacturers have a lot of challenges to face. For instance, they have to worry about the cost-effectiveness of their method for sourcing their raw materials as well as the delivery of their products. Depending on the company and industry involved, various complications in those areas can cause an increase in expenses.

Expense increases can hurt a company’s financial stability. Fortunately, manufacturers financing services can help in most cases. In others, all it takes is a little bit of foresight and planning from the company administrators.

That’s why it pays for manufacturing companies to keep an eye out for the most common challenges in their sector. Below are just a few of the ones you want to look out for.

 

 

Financing Services Solution to the Manufacturers’ Challenges - manufacturers

 

Shortage of Skilled Employees

 

One classic business dilemma is a shortage of employees. For manufacturers of this time, the problem is even more acute. Most of their skilled employees come from another generation… and are slowly growing too old to work.

Unfortunately, the Baby Boomer generation is starting to retire. This is the generation that has powered the current manufacturing industry for the past few decades.

That’s why manufacturers are now beginning to take in fresh new faces. The only downside is that these fresh new faces also have little to no experience.

Not only do manufacturers need to teach a new set of employees, but they need to encourage them enough to sign up for it. Manufacturers are now forced to think of creative and effective ways to attract workers, especially millennial's.

Fast-Changing Technologies

 

Technological advancements appear every day. But because of this, manufacturers struggle to keep up with technology’s fast-paced growth.

In addition, technology brings new threats with it all the time. As technology advances, the threat of cybercrime also rises. With nearly every machine now being connected to the rest, manufacturers have to face risks like viruses and cryptominers.

Manufacturers can try to catch up with technological research and set precautions against cybercriminals. However, new studies and threats typically arise faster than they can put up firewalls against them.

In some cases, the damage caused by cyber-threats to equipment can be bad enough to require their outright replacement. That’s when a manufacturer may need to turn to manufacturers financing services for help.

Growing Local and Global Competition

 

Competition is a challenge for every business, of course. Manufacturers are no exception.

Depending on your company and niche, you may have more or less competition. Even if yours is currently on the “less” side, however, you shouldn’t be too quick to rest on your laurels.

The simple fact is that more competition can always appear out of nowhere… and sometimes does.

No one can stay at the top forever in any market. For instance, consider the fact that China currently has the top spot as the world’s most competitive economy. But studies state that the US is expected to take China’s place in 2020.

So manufacturers need to stay competitive throughout market changes and throughout time. Without manufacturers financing services, however, most business owners may not even be able to afford to compete at all.

 

Manufacturing Regulation Amendments

 

Another problem for manufacturers has to do with labor costs and government regulations. These problems prevent the US from effectively competing with its offshore competition.

New regulations are also constantly added. These issues cause manufacturers to spend even more on monitoring compliance in an effort to adjust to the changes.

Without manufacturers financing services, business owners run the risk of spending too much on catching up. Without realizing it, they could be spending more than they’re actually making in an effort to catch up with regulations.

 

Project Management Glitches

 

Similar to catching up with regulations, manufacturers also need to comply with tight and stressful timelines. This is in order to get their products on the market according to strict deadlines.

Not being able to get their products on the market in time spells big losses for any type of business, especially manufacturers. It could mean losing millions in potential revenue.

When project management glitches happen, a cascade of problems can start. The ability to update and adjust accordingly is sacrificed in order to meet quotas and delivery deadlines. As a result, product quality can degrade as well.

Businesses without manufacturers financing services are then forced to choose which problem to face first. This also includes choosing which problem to spend more on first.

 

 

Financing Services Solution to the Manufacturers’ Challenges -  manufacturing (1)

 

Financing Options as Solutions

 

With so many challenges to face, most manufacturers have to operate on tight budgets. Depending on which challenge they may be facing at present, it can be hard for them to afford big purchases.

This is where financing options should be considered. Manufacturers financing services allow manufacturers to finance more or better equipment without paying the equipment’s full price in one go.

The equipment financed will then be able to help generate revenue while also paying for itself. Eventually, it can make enough profit to cover other expenses -- or help with other challenges -- that manufacturers have to deal with.

Luckily, many financing companies like Trust Capital can provide tailored solutions for your company’s needs. Trust Capital also gives you the option of upgrading your equipment even during the lease duration.

This can allow manufacturers to keep up with the best equipment for their industry. As a result, they can stay competitive and profitable.

 

Trust Capital Finance Solutions

 

You can take your first step to finance by applying online in order to get pre-approved for manufacturers financing services. Their simple application process can get you started right away.

Trust Capital also gives you the option to get a glimpse of how much your financing payments can cost with the use of their financing calculator.

Other than that, Trust Capital can offer various and flexible solutions to suit your needs:

  • Regular fixed monthly payments up to 84 months with no pre payment penalty,
  • $99 for the first 6 months - Requires only $99 to start,

  • 90-Day Deferral - Offers payments of only $0 for the first three months,

  • Seasonally Varied - Matches payment plans to a business' uneven cash flow,

  • "0% Interest" for 24 Months with a 20% buyout (restricted to specific equipment),

  • "Stepped Down" Leases - Payments mirror the declining value of the equipment,

  • Fast Approvals - Online application only up to $500,000.00, full financials above $500,000.00,

  • *Standard products offer Fair Market Value, 10%, and $1 buyouts and terms from 12 - 84 months.  

 

Final Thoughts on Manufacturers Financing Services in Handling Operational Challenges

 

In this blog post, we’ve gone through some of the different challenges that manufacturers face. These challenges can easily eat up their revenues until they find themselves without profits.

But with proper manufacturers financing services, business owners can handle their expenses better. They can deal with most of the challenges involved in manufacturing without having to wreck their operating budgets. They can also have the option of financing equipment that can immediately help them generate more profit.

All of this shows why more manufacturers should consider manufacturers financing services when struggling with their working capital or just want to budget better for a stronger balance sheet. If you still need help regarding manufacturers financing services, you can reach out to Trust Capital at (866) 458-4777.

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