If you're in the market to buy a manufacturing facility, you'll want to do homework on the location and also on the industry you're about to invest in. The building should be located in an area that is easily accessible to your workers and has ample parking and public transportation if possible. It should be up to code, and if it needs modification or remodeling you need to know how much that will cost you. The infrastructure supporting the building should be examined also, including access roads, water, power, and sewage systems. These, and a thorough internal and external inspection of the building are the first steps you'll need to take before initiated the loan process.

 

Examine the industry you're going to be investing in and the equipment being used in the manufacturing facility. Is it the most modern available or is it outdated? Is the work you're going to do here being done elsewhere for less? Many manufacturing companies have gone out of business in recent years because outsourcing to Asia or Africa is cheaper than manufacturing here in the US. Textiles and plastics are two examples of industries that couldn't compete. Are you one of those or a manufacturing facility with a future? Can your equipment be adapted if you want to change products?

 

We're not trying to talk you out of your business venture. On the contrary, here at iBank we want you to succeed and so do the lenders that we can connect you to. To make sure that happens, it's important to make sure you know what you're getting into and what the costs involved will be. Manufacturing facilities often have multiple uses. Having a back up plan in the event that your first venture doesn't work is a good idea. The banks tend to look at that as reassurance of payment and proper planning.