Industries

Working Capital and Merchant Cash Advance for Manufacturers and Distributors

Manufacturers and distributors buy raw materials and inventory, then wait 30 to 90 days for customers to pay. Apex Funding Services compares bridge funding and merchant cash advance offers from multiple funders with one application, so you can take the big order without draining working capital. We are a broker, not a lender.

Featured option: working capital through a merchant cash advance

A merchant cash advance provides a lump sum in exchange for a share of future receipts, sized on bank deposits and repaid by fixed ACH. It funds fast when an opportunity cannot wait, but for most B2B companies with strong receivables, factoring, an AR line or asset-based lending will be cheaper. We will show you both.

Why owners choose it:

  • Speed: decisions often within 24 to 48 hours, with funding soon after approval

  • Sized on revenue: offers are based mainly on your deposits, not just your credit score

  • Repayment matched to how you get paid: split funding or lockbox for card-heavy businesses, so payments rise and fall with sales, or a fixed ACH payment for businesses paid by check, ACH or invoice

  • Limited paperwork: usually bank statements and a short application, with no real estate collateral. Most funders do ask for a personal guarantee of performance

Common uses:

  • Raw materials for a large order

  • Covering payroll while customers pay on long terms

  • Urgent machinery repairs

  • Short-term cash needs during a growth spurt

How repayment works: split funding, lockbox or ACH

  • Credit card split funding: your card processor automatically sends an agreed percentage of each day's card batch (the holdback) to the funder before the rest settles to you. Payments rise and fall with sales.

  • Lockbox funding: card receipts are deposited into a controlled account, the funder's share is taken out and the balance is passed to you. Used when your current processor cannot split payments.

  • ACH: a fixed daily or weekly debit from your business bank account.

Fit for manufacturing and wholesale: ACH. Revenue arrives through invoices paid by ACH, check or wire rather than daily card batches, so split funding and lockbox are not a fit and advances are repaid by fixed ACH.

Bridge funding

Bridge funding is short-term capital that covers the gap until money you are expecting arrives, such as a customer payment, a loan closing or your busy season. It is typically structured as a short-term advance or loan and repaid when the expected cash comes in. Common bridge situations:

  • Funding production until a large customer pays on net 60 or net 90

  • Bridging until an asset-based facility or bank line closes

  • Covering a supplier deposit on a big purchase order

  • Bridging a seasonal inventory build

All your options at a glance

We are not tied to one product. Here is how the main options compare for manufacturers and distributors:

  • Merchant cash advance (working capital): fastest and easiest to qualify for, and usually the most expensive. Best for short-term needs with a clear payback.

  • Revenue-based financing: similar to an advance, repaid as a percentage of revenue, sometimes at a lower cost for stronger businesses.

  • Short-term working capital loan: a fixed amount with fixed daily or weekly payments over 6 to 24 months.

  • Asset-based lending: a strong fit, combining receivables, inventory and machinery into one borrowing base.

  • Invoice factoring and AR lines: a strong fit for invoices to creditworthy business customers.

  • Purchase order financing: pays suppliers directly so you can fulfill large orders.

  • Equipment financing and sale-leasebacks: for machinery, forklifts and production lines.

Traditional alternatives

If your business has the history and credit for it, traditional financing is usually the cheapest money available:

  • SBA 7(a) loans: up to $5 million for working capital, equipment, expansion or buying a business, with terms up to 10 years for working capital and equipment

  • SBA 504 loans: long-term, fixed-rate financing for real estate and major equipment

  • Bank term loans: a lump sum repaid monthly over several years

  • Bank lines of credit: draw and repay as needed, paying interest only on what you use

  • Bank equipment loans: the equipment itself secures the loan

These cost less, but they take longer, often 30 to 90 days, and usually require two or more years in business, good personal credit, tax returns, financial statements and sometimes collateral. If you qualify, we will tell you, and we can refer you to SBA and bank lenders. A common approach is to use a merchant cash advance or bridge funding now and refinance into bank or SBA financing once it closes.

For manufacturers and distributors: SBA 504 loans fit facility and machinery purchases, and established manufacturers with reviewed or audited financials can qualify for a bank revolver or bank asset-based line.

Credit card processing

We can set up B2B card acceptance with Level 2 and Level 3 data, which can lower processing costs when customers pay with corporate or purchasing cards, plus online invoice and ACH payments.

Processing is provided through our processing partners. Send a recent processing statement and we will show you your effective rate and fees, with no obligation to switch.

Before you sign

Speed costs money. A merchant cash advance is a purchase of future receivables, not a loan, and it usually costs more than bank financing. Before you accept any offer, we walk you through:

  • The amount you receive and the total payback

  • The factor rate, holdback percentage or daily and weekly payment

  • How reconciliation works if your sales drop

  • Fees deducted at funding

  • How a new advance fits with any advance you already have. Stacking too many positions is the fastest way into a cash flow crisis, and we will tell you if it is a bad idea

Approval, amounts, rates and terms are set by the funder. Submitting a request does not guarantee approval.

What funders look at

  • Customer concentration and customer credit quality

  • Accounts receivable aging and inventory turnover

  • Gross margins and financial statements

  • Existing liens on receivables, inventory and equipment

Documents to have ready

  • Last 3 to 6 months of business bank statements

  • Accounts receivable and payable aging

  • Recent financial statements

  • Owner ID and a voided business check

Ready to see what you qualify for? Start your application or call (516) 474-3776. One application, multiple funders, no obligation to accept.