Financing for Manufacturing Projects
Manufacturing
Manufacturing's role is changing. The way it contributes to the economy shifts as nations mature: in today's advanced economies, manufacturing promotes innovation, productivity, and trade more than growth and employment. The sector is entering a dynamic new phase. As a new global consuming class emerges in developing nations, and innovations spark additional demand, global manufacturers will have substantial new opportunities—but in a much more uncertain environment.
At Capital Corp Merchant Banking, our winning growth strategies for manufacturing businesses have produced successful results for our clients for over 35 years. By combining consistent and transparent communications, field expertise spanning several decades, and our own knowledge of the financial world, our clients remain well served.
The Manufacturing Industry Today
The Current Situation
In a slow-growth environment such as this, productivity gains are paramount. And that could be a boon for industrial manufacturers. Indeed, industrial manufacturers can best serve their customers (and themselves) by designing tools and equipment that improve the efficiency, costs, and performance of factories and other capital projects. Whether enhancing their or their customers’ plants, industrial manufacturers have an opportunity to profit from innovation strategies that build upon advanced manufacturing concepts and the potential of the industrial Internet.
The Opportunities
By 2025, a new global consuming class will have emerged, and the majority of consumption will take place in developing economies. This will create rich new market opportunities for manufacturers worldwide. A rich pipeline of innovations in materials and processes - from nanomaterials to 3-D printing to advanced robotics - also promises to create fresh demand and drive further productivity gains across manufacturing industries and geographies. However, these opportunities arise in an extremely challenging environment.
Capital Corp Merchant Banking has more than 35 years of experience working with manufacturing companies. Our skilled expertise in this field has made us a leading source of funding for businesses across the manufacturing spectrum.
Funding Manufacturing Projects
A great feature in funding manufacturing energy projects is the fact that:
1) Traditional funding instruments can and often are used, and
2) NO special accommodations or arrangements need to be added on to a funding arrangement involving renewable or non-renewable energy.
The best case scenario is if you (as project promoter/owner) have an off-take agreement (agreement in which a third party that has signed a contract guaranteeing that they will be buying the owner's output for a certain length of time in the future) right from the start.
The Funding Process
On the business end of a manufacturing project, the promoter/ project owner is required to produce essentially the same basic information and documents as he/she would in any other type of project:
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Business Plan
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Feasibility Study (if you have it)
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Any and all information and documents connected with the technology to be used
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PLUS off-take agreement
What can often be the (only) tricky part of funding a manufacturing project is assessing the technology that will be used to produce the output; but solid, time-tested processes do exist and are often favored in these types of deals.
There are many financing tools that we use in manufacturing project transactions in order to create the best-fitting financing structure, such as:
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Debt financing
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Mezzanine financing
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Equity investment
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Asset-based
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Expansion capital
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Government programs
Ready to take the next step? Got a manufacturing project (startup, expansion, equipment, etc) that needs funding?
Get in touch with us today and find out how we can help you!
45 Years of Experience in the International Banking Industry
Experienced Project Financing
Engineer
Awarded in Orlando's Business Hall of Fame for 12 Years Running
2017 Gamechanger of the Year Award Winner
Are you a consultant looking for new funding sources for your clients?
We always appreciate the interest garnered by the high-caliber service we have been providing for 40 years. While we do not have agents representing us in any countries of the world, we still get most of our business from banking consultants, introducers, and brokers worldwide.
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If you are a broker, banking consultant, or professional introducer, we welcome the opportunity to do business with you; and in that respect, if you are interested to submit any manufacturing projects that require funding, we invite you to fill out the contact form below.