Getting Started as a Manufacturer
Starting a manufacturing company, like starting any company, has its challenges. As a manufacturer, you’ll more than likely be confronted with a lot of upfront costs. You’ll need to order raw materials, research and develop prototypes, purchase the necessary equipment to make your product a reality, and build a successful sales channel. While every manufacturing company is different, maintaining a positive cash flow is a top priority, especially early on in the life cycle of the business.
When selecting companies to work with during this critical time, you should seriously consider checking their business credit to gauge their financial health. The last thing you want is to be left high and dry by the company you ordered your raw materials from when you’re ready to roll out your product.
Many companies will pull your business credit report to help decide whether or not they want to work with you. Having a strong business credit file will help establish your credibility with insurance companies, lenders, suppliers, and buyers.