When it comes to manufacturing financing, it's important to work with a lender that has a proven track record of success. At Manufacture Finance, we attribute our lending success to the 5-C Method: character, capacity, collateral, conditions, and capital. In this blog post, we'll break down each of these elements and explain how they contribute to our lending success.

Character: Trustworthiness and Integrity

The first C in the 5-C Method is character, which refers to the borrower's trustworthiness and integrity. When evaluating a borrower's character, we look at their credit history, business experience, and overall reputation in the industry. We want to make sure that we're working with borrowers who have a solid track record of paying back loans and who have a reputation for operating their business with integrity.

Capacity: Ability to Repay

The second C in the 5-C Method is capacity, which refers to the borrower's ability to repay the loan. We want to make sure that borrowers have a steady source of income and sufficient cash flow to make their loan payments. We'll evaluate the borrower's financial statements, including their income statement, balance sheet, and cash flow statement, to determine their capacity to repay the loan.

Collateral: Assets to Secure the Loan

The third C in the 5-C Method is collateral, which refers to the assets that the borrower can use to secure the loan. This could include equipment, real estate, or other valuable assets that can be used as collateral to secure the loan. By using collateral, we can reduce the risk of lending and provide borrowers with more favorable loan terms.

Conditions: The Purpose of the Loan

The fourth C in the 5-C Method is conditions, which refers to the purpose of the loan. We want to make sure that the loan is being used for a productive purpose that will benefit the borrower's business. This could include funding for new equipment, working capital, or other investments that will help the borrower grow their business and increase their profitability.

Capital: Investment in the Business

The final C in the 5-C Method is capital, which refers to the borrower's investment in their business. We want to work with borrowers who have a significant stake in their business and who are committed to its long-term success. By having a significant investment in the business, borrowers are more likely to be motivated to make the necessary investments and decisions to help the business grow and succeed.

Our Secret to Lending Success

At Manufacture Finance, we've found that the 5-C Method is the secret to our lending success. By evaluating each of these elements, we can make informed lending decisions that benefit both our borrowers and our investors. According to a study by the Small Business Administration, the average approval rate for small business loans is around 27%, but our approval rate is much higher. In fact, we've helped many manufacturing businesses secure the financing they need to grow and thrive.

If you're a manufacturing business in need of financing, consider working with Manufacture Finance. Our proven track record of lending success, along with our commitment to the 5-C Method, make us a trusted partner for manufacturing financing. Contact us today to learn more about our loan options and how we can help your business grow.