FOR MANUFACTURERS
Manufacturers pay for raw materials, labor and overhead long before customers pay their invoices, and one large order can tie up cash for months. Clear helps manufacturers and fabricators get working capital to take on bigger orders, cover payroll and keep production moving. One application gives you access to short term loans, merchant cash advances, lines of credit and asset-based loans from 100+ lenders.
One of my major vendors was slow to pay and I was having a hard time making payroll. Clear was able to quickly get me approved for a merchant cash advance. The terms were much better than I found elsewhere and I had funds in my account the very next day. Thank you Clear!
Related: Working capital loans · Merchant cash advance · Short term loan
Common uses include buying raw materials for a large order, covering payroll between customer payments, bridging long invoice terms, repairing equipment and expanding production. Merchant cash advances and short term loans have no restrictions on the use of funds.
Merchant cash advances and short term loans can fund within 1 to 2 days of approval, and it’s not uncommon for clients to receive funds the next day. You typically need only a completed application and your 3 most recent business bank statements. An asset-based loan offers larger amounts at lower rates, but underwriting can take up to 90 days.
Yes. An asset-based loan uses receivables, inventory and equipment as collateral for up to $10 million, with rates from 7% and terms of 2 to 10 years. It generally requires 1 year in business, $250,000+ in annual revenue and a 650+ FICO score. Invoice factoring is another way to turn unpaid invoices into cash.
A short term loan offers up to $5 million over 6 to 36 months with interest from 11%, and generally needs a 600+ FICO score. A merchant cash advance is our easiest product to get approved for (500+ FICO) and offers up to $2 million over 3 to 24 months, priced with a factor rate from 1.14 instead of an interest rate. Your Clear loan advisor can compare offers side by side so you can choose.
A factor rate is the total cost of a merchant cash advance. For example, if you receive $20,000 at a factor rate of 1.15, you repay $23,000, so your cost of money is $3,000.
Often, yes. A merchant cash advance can work with a FICO score of 500 or higher because approval is driven mainly by your revenue and bank deposits. Short term loans generally need 600+, and lines of credit 650+.
For a merchant cash advance: 6 months in business, $250,000+ in annual revenue and a 500+ FICO score. For a short term loan: 6 months in business, $250,000+ in annual revenue and a 600+ FICO score. For a line of credit: 12 months in business, $400,000+ in annual revenue and a 650+ FICO score.
Merchant cash advance payments are made daily (Monday to Friday), weekly or semi-monthly by automatic ACH withdrawal. Short term loan payments are weekly or monthly. With a merchant cash advance, payments are normally tied to a percentage of your sales, so if revenue drops you can usually ask to lower the payment.
Clear is a business loan marketplace with 100+ lenders. One application lets you compare offers across products, and a dedicated loan advisor helps you choose terms that fit your production and payment cycle. See how a manufacturer used a short term loan, a retail manufacturer and a toy manufacturer got funded.
