Industry

Manufacturing funding in Canada: what funders actually read.

The deposit patterns, seasonality and timing that decide how a Canadian manufacturing file is read.

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How funders read manufacturing files

Raw-material purchases, purchase orders and 30 to 60-day receivables make manufacturing a cash-flow-timing business.

Receivable cycles and customer concentration
Purchase-order timing against material costs
Equipment financing already in place
Export receipts and currency

A worked example

Illustrative arithmetic

A Mississauga manufacturer with $150,000 a month in deposits takes $70,000 at 1.22 to buy materials for a large order, repaying $85,400 weekly over about 24 weeks.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Common questions

What do funders read first in manufacturing files?

Receivable cycles and customer concentration, then purchase-order timing against material costs.

What is the money usually used for?

Most often: raw materials ahead of a large order; tooling and equipment; expanding shifts or staff; bridging slow-paying customers.

Is manufacturing funding the same as for other trades?

The review reads the same things in every trade. What changes is the rhythm: raw-material purchases, purchase orders and 30 to 60-day receivables make manufacturing a cash-flow-timing business.

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