List Of Financing Alternatives for Manufacturing Companies In Nevada - 2024

Updated on August 12, 2024

Small to medium-sized manufacturing companies in Nevada face challenges when trying to get capital. Traditional bank loans are hard to get because of strict rules. Yet, there are many paths to consider. These include both borrowing money and getting investment, along with other unique ways to get funds.

The Nevada Department of Business & Industry offers a comprehensive guide. This guide helps companies find different ways to finance their business. It includes Charter School Bonds, Industrial Development Revenue Bonds, and the New Markets Tax Credit Program. Also, for those seeking new options, the Opportunity Zones Tax Incentive Program and various unconventional financing methods are available. Nevada shows its support for business owners through many grants and incentives as part of its economic programs¹.

Key Takeaways

• Securing traditional bank loans for manufacturing companies in Nevada can be challenging due to stringent requirements.
• Debt and equity financing are potential avenues for capital access for Nevada manufacturers.
• The Nevada Department of Business & Industry offers numerous financing options, including Charter School Bonds and Industrial Development Revenue Bonds.
• Opportunity Zones Tax Incentive Program and other non-traditional methods provide diverse Nevada manufacturing finance options.
• Grants and incentives from state economic programs directly support business funding solutions in Nevada.

Traditional Bank Loans in Nevada

In Nevada, traditional bank loans are a key option for business funding. They offer detailed funding solutions. Online lenders are getting popular, but bank loans usually have better rates and fixed payment plans².

Overview of Bank Loans

Nevada offers big funding through bank loans for various business needs. Needs like growth, buying inventory, or for cash flow. These are term loans that give a big amount up front. Then you repay it over time with set interest rates².

Eligibility Criteria for Bank Loans

To get these loans, a lot of paperwork is needed. You'll need to show your credit history, business plan, and finances². Nevada lenders want to see good finances. Often, they'll ask for something valuable as loan security.

Pros and Cons of Traditional Bank Loans

Bank loans have lower interest rates and predictable payments. That's good for businesses with strong finances³. But, getting a loan requires lots of documents and might take a long time³. They also might ask you to provide collateral.

Small Business Administration (SBA) Loans in Nevada

SBA loan programs are a big help for Nevada's entrepreneurs. They lower the risk for lenders. This means better loan terms for business owners. Lenders work with the SBA to offer loans that fit small business needs. This gives them access to important funds with good terms.

Types of SBA Loans Available

In Nevada, there are important SBA loans like the 7(a) and CDC/504. The 7(a) loan is very flexible. It can be used for many things like buying equipment or getting working capital. The CDC/504 loan is for buying real estate or big equipment. It covers up to 40% of costs, with the bank and borrower covering the rest.

• SBA 504 Loans have long payback times, which helps with planning⁴.
• Their interest rates are fixed and usually lower than average⁴.

How to Apply for SBA Loans

Getting an SBA loan takes a lot of paperwork. You need a detailed business plan, financial statements, and credit history. For a 504 loan, pre-qualification can happen in three days. Usually, it takes 30 to 60 days to get approved⁴.

1. Your business must have a net worth under $15 million and make less than $5 million a year⁴.
2. Be ready for various loan fees like CDC and attorney fees⁴.

Advantages of SBA Loans

Nevada's SBA loans have big perks. They offer low interest rates and long payment terms. Some loans can go up to $5.5 million for green projects. SBA loans can cover up to 90% of costs, saving working capital⁴.

• These loans are for small Nevada companies that want to grow².
• The loan process is hard, but the benefits are worth it².

Overall, Nevada's SBA loans like the 7(a) and CDC/504 are key for growth. They are vital for small businesses that want to succeed.

Asset-Based Lending in Nevada

Asset-based lending (ABL) is a vital choice for businesses seeking liquidity. It allows Nevada firms to borrow against assets like accounts receivable and inventory. This finance type is key for companies looking to grow, buy, or revamp.

What is Asset-Based Lending?

ABL lets businesses get loans based on their assets' liquidation value. It offers quick capital access, usually in 3 to 5 days, helpful for those facing cash issues. ABL is crucial for less capitalized companies in fields like manufacturing and services. Industry lenders provide ABL loans from $500K to $20M, serving a wide range of businesses.

Common Collateral Used in Asset-Based Lending

Collateral for these loans often includes:

• Accounts receivable
• Inventory
• Business equipment
• Factory machinery
• Personal assets of business owners⁵

Manufacturers and wholesalers regularly opt for this financing. Asset-based loans, receivables financing, and more are available globally from lenders like Lender #5. They offer $1M to $15M with required monthly sales revenue of $2.5 million to $10 million.

Benefits of Asset-Based Lending

ABL benefits include:

• Steady funding through revolving credit
• Quicker solutions than traditional loans
• Flexible terms, focusing less on credit scores
• Ideal for businesses with seasonal sales or fast growth⁵

Retail, staffing, and apparel industries in Nevada find ABL fitting due to its quick capital access and lenient credit needs. ABL rates vary from 0.69% to 1.59%, allowing companies to borrow at reasonable costs. This helps them operate smoothly and grow.

Accounts Receivable Financing in Nevada

Accounts receivable financing, also called receivable-based funding, helps businesses in Nevada get funds quickly. This includes IT and healthcare sectors. By using invoice factoring Nevada, companies can sell their invoices to firms like altLINE and Seacoast Business Funding. This gives them immediate cash flow support⁶.

Understanding Accounts Receivable Financing

Accounts receivable financing, or AR financing, lets businesses use their invoices to get money fast. It's great for handling immediate cash needs without waiting for invoice payments. Receivable-based funding is easier to get than traditional loans because it focuses on invoice quality over credit scores.

How Accounts Receivable Financing Works

Accounts receivable financing means selling receivables at a discount to get funds. For instance, healthcare factoring helps those in health with slow-paying clients. It helps them pay for costs and grow quickly⁷. IT companies can also get money in 24 hours, aiding in quick decisions and stable cash flow⁷.

Pros and Cons of Accounts Receivable Financing

AR financing has its ups and downs. Benefits include quick cash and repayment plans that match revenue flow. AR financing offers up to 90% loan-to-value for receivables, good for those with credit challenges⁷. Yet, it can be pricier than regular loans. Also, companies must deal with creditworthy clients to get financing.

Equipment Financing in Nevada

Equipment financing is key for Nevada's manufacturing companies. It lets them get expensive machinery without big upfront costs. This financing gives them great equipment loan opportunities, keeping them ahead in the fast-changing market.

These financing programs offer fast funds, sometimes in just 24 hours⁸. Midland Equipment Financing, a top choice, has loans from $50,000 to over $5,000,000⁸. This is crucial for firms wanting to grow quickly or update their equipment now.

Equipment loans stand out for their flexibility. They often need $0 down, letting businesses get vital machinery without hitting their wallets hard⁸. This approach to machinery financing Nevada helps sectors like construction and healthcare. They can wrap the equipment costs and extra fees into one easy payment each month⁸.

Lease options, like operating and finance leases, offer unique perks. Operating leases can mean tax-friendly payments, with terms from 36 to 84 months⁸. Finance leases, meanwhile, have steady monthly payments and tax benefits, lasting up to 84 months⁸. These choices help manufacturers plan their expenses while upgrading their gear.

Also, applying is simple. For deals up to $500,000, companies can use a single-page form⁸. This makes getting capital expenditure funding quick and straightforward⁸. So, Nevada's manufacturers can keep up with market trends and new tech easily.

In sum, equipment financing is vital for manufacturers. It allows them to get crucial machinery with low start-up costs. Plus, they can use the equipment itself as collateral. This financing method ensures Nevada's manufacturing industry stays strong, growing, and innovative.

How Equipment Financing Can Benefit Manufacturing in Nevada

Equipment financing is key for manufacturing expansion in Nevada. It lets manufacturers get or lease the machines they need without using up their cash. This way, companies can keep their money for other important parts of their business. They improve how they work and use the latest technology⁹. Equipment loan benefits include managing costs easily over time. This helps companies plan their finances better and stay stable.

Midland Equipment Financing is a top choice for equipment financing. They offer loans from $50,000 to over $5,000,000, designed for manufacturers. Their terms are flexible, from 1 to 7 years. This helps companies match their loan payments with how they make their products¹⁰. Applying is easy too. A one-page form is all that's needed for up to $500,000. Companies can get the money fast, often in 24 hours after finishing the underwriting process¹⁰.

There are big tax advantages with equipment financing too. By using Section 179 of the US tax code, manufacturers can cut their taxes a lot. They can deduct the cost of the equipment in the year they buy it¹⁰. This savings, along with being up-to-date with technology and offering specific loans for heavy equipment, makes financing attractive. It drives growth in manufacturing¹⁰.

Eligibility Criteria for Equipment Financing in Nevada

Manufacturers in Nevada need to meet certain criteria to get equipment financing. A good credit score, financial stability, and a detailed business history are key. These help a lot in the approval process. A strong business plan also makes a difference.

Lenders want proof that the equipment will help the business grow. This could mean showing how it can increase revenue or make things more efficient. Also, different lenders have different rules. It depends on the type of equipment and how long it's expected to last.

For example, Crest Capital offers loans up to $1 million if you have a good credit score¹¹. Balboa Capital lends for new and used equipment up to $500,000. You need a credit score of at least 620¹¹.

US Business Funding has flexible terms for loans from $10,000 to $2 million. They often include lease options with the chance to buy¹¹. CIT Bank works with firms that have great credit, offering loans up to $100 million. They do this without needing detailed financials¹¹.

Different equipment qualifies for loans. This includes computers, vehicles, and heavy machinery. New equipment is often easier to finance because it lasts longer. However, it's more expensive at first and loses value quickly¹¹. Used equipment is cheaper and loses value slower. But, it might cost more to maintain and require more collateral¹¹.

The USDA offers big loan guarantees for rural businesses. The terms can go up to 40 years. They cover 80 percent of the loan for Fiscal Year 2024. There's a 3 percent fee to start and a 0.55 percent yearly fee on the covered part¹². Interest rates can be fixed or variable, offering flexibility¹².

Merchant Cash Advances in Nevada

Merchant Cash Advances (MCAs) offer a quick financing option. They are popular in Nevada among businesses with lots of credit card sales. By providing a lump-sum advance, they are paid back through a part of daily sales plus fees.

Overview of Merchant Cash Advances

MCAs vary greatly in size from $7.5k to $1m. This makes them great for both small and large businesses that need money fast¹³. Getting approved for a merchant cash advance is quick, usually in 1-2 days. This helps businesses get to needed funds swiftly¹³. Rates begin at 1-6% per month. But, actual costs depend on the deal made with the provider¹³.

Industry-Specific Applications

Retailers and restaurants find MCAs very useful. This is because they usually have a lot of credit card sales. The last 3-6 months of credit card sales are looked at to decide the loan amount¹³. This amount can be from 50% to 150% of average sales. So, businesses get funding that matches their sales level.

Pros and Cons of Merchant Cash Advances

MCAs provide money quickly, which is vital for businesses in need. Their repayment method is flexible, adjusting with sales levels. But, these loans can be expensive. They come with high rates and fees, affecting cash flow¹³. Even though they accept less-than-perfect credit, they best suit businesses with good sales but poor credit¹³.

For more on business financing, visit this detailed guide on Nevada's small business loans¹³.

Grants and Incentives in Nevada

Nevada offers many grants and incentives for manufacturing companies. These help with economic development and business growth. They support small business expansion and draw investments, pushing for innovation and jobs in manufacturing.

Financial support like business growth grants in Nevada can pay for eligible costs. States like Colorado have incentives to promote energy efficiency in producers and schools¹⁴. Manufacturing companies can get support covering up to 50 percent of project costs¹⁵.

Arizona provides loans for energy retrofit projects through the Advanced Energy Technology Loan. This encourages companies to be more energy-efficient¹⁴. Nevada offers similar incentives for small businesses to use green and efficient technology.

Companies interested in green energy can get loan guarantees up to 80 percent for loans in Fiscal Year 2024¹⁵. They can also apply for Energy Efficiency Grants from $1,500 to $500,000¹⁵. This support is vital for businesses moving towards advanced manufacturing.

Financial aids are available to many small businesses through tax credits, rebates, and loans. Up to 75% of eligible project costs can be covered¹⁵. Businesses need an environmental review to qualify for these incentives.

In summary, Nevada's programs are great examples of helping manufacturing companies grow sustainably. Each step from applying to getting the funds is carefully planned. This ensures significant financial help and fosters lasting success in manufacturing.

Exploring Government Grants for Manufacturers in Nevada

Nevada provides essential funding for manufacturing businesses looking to grow and improve. These state grants offer money without giving up company ownership. This helps businesses expand, embrace new tech, and create jobs.

To use these grants, companies need to know who can apply and how. Money is given to businesses that help meet Nevada's economic goals. This includes things like creating more jobs and advancing technology. For instance, small businesses could get up to $750,000 over two years from programs like the SBIR and STTR¹⁶. This money comes from eleven federal agencies to help businesses innovate and expand.

The Department of Commerce has many grant options for businesses¹⁷. Their programs support advanced manufacturing, economic growth, and trade¹⁸. The NIST and NOAA give grants to aid industrial competitiveness and help communities¹⁸.

Money from the CARES Act supports small and minority-owned businesses. The MBDA got $10 million to help these businesses during COVID-19¹⁸. There's a lot of funding aimed at helping the manufacturing industry grow in many ways.

Minority-owned manufacturing businesses have special grants available. Grants like Wish Local Empowerment and Feed the Soul offer vital financial help¹⁶. These help with growth and encourage a more inclusive economy.

In conclusion, Nevada's grants and federal programs are key for manufacturers wanting to get bigger and innovate. By understanding what's available and qualifying, businesses can get funds to boost their industry and Nevada's economy.

Incentive Programs in Nevada

Nevada offers incentive programs to help manufacturers grow. These include tax breaks and lower rates to save money. They also support more investments and jobs. The Nevada Diesel Emission Mitigation Fund helps replace old diesel vehicles, offering funds based on various factors¹⁹.

Manufacturers get perks like weight exemptions for eco-friendly vehicles. This makes it easier for transport companies to use greener vehicles. Vehicles with special technology can carry more weight, up to 550 lbs. or 2,000 lbs. extra¹⁹.

Nevada is also working on electric vehicle (EV) support. They plan yearly for EV infrastructure with the U.S. Department of Transportation. Plus, they encourage using Renewable Natural Gas (RNG) for its clean benefits¹⁹.

The CHIPS Act boosts Nevada with an Advanced Manufacturing Investment Tax Credit. It offers 25% back on investments in semiconductor manufacturing²⁰. Nevada also backs over 50 renewable energy projects, like solar and wind, showing its eco-friendly goals²⁰.

Leasing an electric vehicle in Nevada can get you up to $75,000 in tax credits. This is thanks to the Inflation Reduction Act, making EVs more accessible²¹. It's part of Nevada's plan to match business incentives with climate aims.

Nevada urges manufacturers to explore its business programs. Programs like the Clean Trucks and Buses Incentive and the Nevada Clean Energy Fund offer grants for clean energy. They aim to boost financial gains and support eco-friendly practices¹⁹²¹.

Non-Traditional Financing in Nevada

In Nevada, new financing options are key for businesses. They offer flexible lending outside traditional banks. These methods are quick and often easier for firms to get the money they need.

Peer-to-Peer Lending

Peer-to-peer (P2P) lending lets borrowers and lenders meet online, skipping the middleman. Websites like Funding Circle match over 143,000 loans to small businesses in the US and UK²². This process comes highly recommended by more than 90% of US users²². In Nevada, P2P is a big help for small enterprises looking for adaptable financing.

Microlending Options

Microlending gives out small loans, typically between $1,000 and $15,000. These are perfect for new or small businesses without a lot of credit history. Kiva offers zero-interest loans up to $15,000 without caring about credit scores²³. They've handed out over $1.6 billion worldwide, making it easier for Nevada's businesses to start or grow²³.

Advantages of Non-Traditional Financing

P2P loans and microlending have big benefits for businesses in Nevada, especially those often overlooked by banks. Champions Funding has supported over 180 loans to diverse borrowers and non-traditional mortgages²⁴. The perks include:

• Quick Access to Funds: These options can speed up the approval and payment process. Credibly makes decisions in four hours²³, and Funding Circle funds in two days²³.
• Lower Credit Requirements: You don't need a high credit score for these loans. Bluevine takes scores from 625, and Kiva has no requirement²³.
• Diverse Borrower Eligibility: They serve many applicants, including those with weaker credit. Champions Funding even works with non-U.S. citizens²⁴.

Some non-traditional loans may have shorter payback times and higher costs. But, their ease of getting and flexibility are key for new and small companies. Nevada's alternate lending scene is growing, offering new ways to financial success.

Conclusion

Looking at the Nevada business financing overview, several funding options are open for the manufacturing sector. Traditional bank loans are strict but reliable. SBA 504 Loans are beneficial for small to medium-sized businesses⁴. They offer long payback times of up to 25 years. Plus, they have good interest rates for businesses making under $5 million in the last two years⁴.

Manufacturers can also look into asset-based lending and equipment financing. Asset-based lending uses collateral for securing funds. Meanwhile, equipment financing helps buy important machinery⁴. Both provide fast access to money and have easy payback options⁴.

For those who don't fit traditional bank criteria, there's peer-to-peer lending and microlending. There are also government grants and Nevada-specific programs available. It's wise for manufacturers to carefully check each option. They should consider their financial status and goals. Getting advice from financial advisors is recommended to choose the best funding²⁵.