Why Choose First Horizon Solutions for Manufacturing Financing?

What Is Manufacturing Financing?

Manufacturing financing refers to a set of funding solutions designed to support the full ecosystem of production that stretches from companies that manufacture goods to the businesses that buy, distribute, or contract with them.

For manufacturers, it provides working capital, equipment funding, and expansion capital to improve output, efficiency, and scalability.

For businesses buying from or partnering with manufacturers, it offers customer-facing financing solutions that make it easier to commit to large purchases or long-term production agreements without tying up capital upfront.

At First Horizon Solutions, we offer both. We support manufacturers behind the scenes with capital and operations funding, and we help them offer financing to their customers at the point of sale. This two-sided approach helps both parties build stronger relationships, close deals faster, and scale with confidence.

Why Manufacturing Needs Purpose-Built Financing

Manufacturing is not just another industry—it’s the backbone of how goods get made, delivered, and scaled. But behind every product on the line is a complex network of costs that appear well before a single item ships. From sourcing materials to hiring skilled workers, investing in precision machinery, managing inventory, and navigating regulations, every step requires upfront capital.

Here’s the problem: revenue usually shows up last.

That delay between investment and return is where things get tricky. A manufacturer might land a large contract but need to pay suppliers, prep the floor, and hire extra staff before a dime comes in. At the same time, the buyer on the other side might be dealing with tight budgets, internal approval processes, or seasonal cash flow constraints.

This is where purpose-built financing matters.

Instead of forcing businesses to patch together funding from general-purpose loans or credit cards, tailored manufacturing financing gives both sides exactly what they need to move forward. For the manufacturer, it’s the confidence to say yes to bigger orders, upgrade equipment, or scale production without cash flow taking a hit. For the buyer, it’s the ability to place a large order, invest in custom production, or launch a new product line without tying up every available dollar.

When financing is aligned with how manufacturing actually works, everything runs smoother. Production schedules are easier to plan. Payments become more predictable. Customer relationships strengthen because both sides feel supported. And instead of hitting pause due to financial roadblocks, businesses move forward with confidence.

Purpose-built financing doesn’t just fill a gap. It drives momentum. It gives manufacturers the freedom to operate at full capacity and gives their customers the freedom to grow without hesitation. That’s what First Horizon Solutions is here to deliver capital that keeps things moving.

Financing Solutions for Manufacturers

Manufacturing growth doesn’t just rely on innovation or efficiency. It relies on capital. Whether you’re producing goods in-house or coordinating production through contract vendors, your ability to scale and compete comes down to timing, liquidity, and access to the right funding structure.

At First Horizon Solutions, we work directly with manufacturers to tailor financing solutions that fit their production cycles, customer demands, and operational priorities. From routine costs to strategic expansion, we help make sure capital is never the reason you can’t take on more work, improve your process, or fulfill a large purchase order.

Here’s a closer look at the funding options available and how they can be used in a real-world manufacturing environment.

Working Capital Loans

Working capital is the lifeblood of a manufacturing operation. It covers everything that keeps the floor running—from payroll and inventory to logistics and short-term obligations. But that capital is often stretched thin when you’re waiting on client payments, ramping up a new contract, or navigating fluctuating material costs.

A working capital loan provides immediate cash that you can apply wherever it’s needed most. Use it to cover rising input costs, retain skilled workers during slow periods, place bulk orders with suppliers for better pricing, or stabilize operations while waiting for receivables to clear.

Best for:

• Managing payroll during off-peak seasons

   

• Purchasing raw materials ahead of expected demand

   

• Fulfilling large purchase orders that require upfront cost coverage

   

• Keeping production on schedule while receivables are pending

   

Working capital loans are typically short to medium term, with flexible use cases and approvals based on your revenue, current obligations, and repayment capacity.

Equipment Financing

Modern manufacturing is driven by expensive and complex machinery. Whether it’s CNC machines, robotics, packaging systems, or custom tooling, the right equipment determines both the quality and the quantity of what you produce.

Equipment financing allows you to acquire or upgrade essential machinery without draining your operating cash. Instead of making a large lump-sum payment, you spread the cost over time while using the equipment immediately to generate revenue.

Because the equipment itself secures the loan, approvals are often quicker and more accessible for businesses with limited credit history or heavy balance sheets.

Best for:

• Upgrading outdated machines to increase output

   

• Acquiring new technology to reduce labor costs

   

• Financing vehicles, tools, or specialized production systems

   

• Adding machinery to support new product lines

   

The terms on equipment financing typically range from 24 to 72 months. In many cases, tax benefits such as Section 179 depreciation can further improve your return on investment.

Business Lines of Credit

Manufacturing rarely moves in straight lines. Client demand fluctuates. Material prices shift. Equipment breaks down. A business line of credit gives you the flexibility to respond quickly without having to reapply for funding or delay production while waiting for traditional loans.

This revolving credit allows you to pull funds as needed and only pay interest on what you use. It’s especially helpful for businesses managing multiple orders, variable project timelines, or unexpected shortfalls in supplies or staffing.

Best for:

• Filling short-term cash flow gaps

   

• Covering urgent orders or rush jobs

   

• Buying materials in bulk during supplier discounts

   

• Handling unplanned repairs or maintenance

   

Credit limits are based on your revenue and financial performance. As you repay, your available balance resets to provide you continuous access to capital when you need it most.

Facility Expansion and Leasehold Improvements

As your manufacturing business grows, so does the need for space. That might mean expanding your physical footprint, improving the safety and efficiency of your floor, or upgrading your electrical systems to support more machinery.

Facility financing helps you invest in infrastructure without diverting funds from operations. Whether you’re renovating a leased facility, adding square footage, or building out a new site, this capital helps you grow in place or move your business to a better location.

Best for:

• Adding additional production lines or assembly stations

   

• Renovating for compliance or efficiency

   

• Expanding warehouse space or integrating new loading docks

   

• Making safety, HVAC, or lighting improvements

   

Facility expansion and leasehold improvement loans are typically longer term and may involve appraisal or permitting steps, depending on the scope of the project.

Invoice Factoring

Delayed payments are one of the most common and damaging issues in manufacturing. Waiting 30, 60, or even 90 days for customers to pay can freeze up your ability to take on new work or meet day-to-day obligations.

Invoice factoring gives you immediate access to capital by turning outstanding invoices into working cash. You sell your receivables to First Horizon Solutions at a discount, receive the majority of the invoice amount up front, and we collect payment directly from your customer.

Best for:

• Stabilizing cash flow during periods of client payment delays

   

• Taking on new orders without waiting for existing invoices to close

   

• Reducing dependency on short-term borrowing or lines of credit

   

• Avoiding missed payroll or production delays due to slow receivables

   

Approval for invoice factoring is often based on the creditworthiness of your customers more than yours. Factoring offers a fast turnaround, often within one or two business days.

Choosing the Right Mix of Financing

Most manufacturers rely on multiple types of funding. Depending on your size, order volume, seasonality, and long-term goals, a blended approach is often the smartest strategy.

For example, many clients use equipment financing to acquire new machines, working capital loans to handle payroll during ramp-up, and invoice factoring to smooth out revenue cycles. With First Horizon Solutions, you can build a customized financing plan that supports every part of your operation without putting pressure on any single resource.

And because we understand manufacturing, we’re able to advise on what funding is available, how to structure it to best support your ongoing success.

Financing for Companies That Buy from Manufacturers

If you work with a manufacturer or outsource production, you know how difficult it can be to fund upfront costs for inventory, tooling, or deposits. This is especially difficult for new products or larger orders than normal. First Horizon Solutions gives your business the financial runway it needs to scale with a variety of financing for specialized manufacturing needs.

Customer Financing for Manufacturer Clients

We offer vendor financing programs that help manufacturers extend payment options to their customers. This allows you, as the buyer, to get what you need now while spreading out the cost over time. You keep your capital free, and the manufacturer gets paid in full.

Whether you’re launching a new product, fulfilling a large retail contract, or scaling a private-label brand, this type of financing ensures you can move forward without delay.

This option could work well for business that are:

• Launching a new product that requires custom manufacturing
• Placing a large wholesale order for resale or retail distribution
• Paying for tooling, molds, or prototypes
• Expanding a product line but need to conserve capital
• Managing seasonal inventory cycles that strain cash flow

Working Capital Loans for Buyers

Cover deposit payments, freight costs, and supplier minimums without slowing down. Our short-term loans and funding lines are structured to match your purchasing cycles.

Purchase Order Financing

Let us fund the manufacturing process on your behalf. You get the goods delivered, then pay once they’ve sold or your client has paid you.

Vendor Financing Programs for Manufacturers

One of the most powerful growth tools for any manufacturer is the ability to offer financing directly to customers. First Horizon Solutions helps you implement a white-label or co-branded financing program that allows your customers to buy with low monthly payments—while you still get paid upfront.

This not only helps you close more deals, but also increases average order size, reduces negotiation friction, and builds deeper loyalty with your customer base.

Key Benefits for Manufacturers:

• Present payment plans that help buyers say yes
• Receive full payment up front without risk
• Remove budget objections and pricing delays
• Compete more effectively with larger manufacturers or overseas vendors
• Boost revenue without expanding your sales team

If your customers have ever said, “We want to move forward, but we need more time,” offering financing can help them act today.

Common Use Cases for Manufacturing Financing

For Manufacturers:

• Upgrading to automated machinery to increase production
• Hiring skilled labor to support growth contracts
• Buying bulk raw materials at a discount
• Building a new facility to meet regional demand
• Installing technology to streamline operations

For Buyers and Clients:

• Placing a high-volume order for resale or e-commerce
• Producing a new product line before launch revenue arrives
• Covering the cost of tooling, molds, or setup
• Fulfilling a new wholesale contract without pulling from reserves
• Managing production without tying up capital in inventory

What to Expect from the FHS Process

Whether you’re a manufacturer seeking capital or a business sourcing from one, our approach is fast, flexible, and personal. We tailor financing solutions to the pace, structure, and needs of your business.

Fast, Flexible, and Built Around Your Business

If you’ve been in business for at least a year and have steady finances, you may be eligible to fast-track your application and get funding within just a few days.

Here’s what you can do right now:

• Submit a Fast Track Application for Funding to find out what financing and loan options are available for your business.

   

• Meet with a funding specialist who will walk you through tailored options based on your goals and growth plans

   

The process is simple, quick, and completely obligation-free. You won’t deal with complicated paperwork, long waits, or generic bank offers. Instead, you’ll get clear numbers, flexible structures, and expert guidance with a focus on finding the best solution for your business.

At First Horizon Solutions, we’re committed to providing you with the best available options, rates, and terms based on your unique needs. No pressure. No confusion. Just straightforward support that helps you move forward with confidence.

Build Smarter with Manufacturing Financing That Moves at Your Speed

The right manufacturing financing does more than fund your next purchase—it unlocks your potential. Whether you’re managing production in-house, scaling through vendor partnerships, or sourcing from a trusted manufacturer, access to capital is what keeps everything moving. At First Horizon Solutions, we provide more than money. We bring a real understanding of how manufacturers operate and what businesses need to grow. Our approach is simple, strategic, and tailored to where you’re headed next.

Why Businesses Choose First Horizon Solutions

• We work with manufacturers and the companies that buy from them
• We design custom financing programs that support both sides of the transaction
• We deliver fast decisions and flexible funding that align with production timelines
• We offer strategic guidance, not just loan approvals
• We treat every client like a partner, not a transaction

   

Let’s Take the Next Step Together

If you’re ready to move forward, whether it’s expanding your production floor, placing a major order, upgrading equipment, or offering financing to your own clients, First Horizon Solutions is here to help. You can get started in just a few minutes with no obligation.

• Start with a Quick Application to see what you qualify for
• Or Schedule a Short Call with a funding specialist to talk through your needs

We’ll help you find the best options, the best rates, and a funding solution that fits your business.