Textile and apparel manufacturing is the backbone of the global fashion industry. From local cut-and-sew factories to vertically integrated brands, growth requires capital—especially in a fast-paced, trend-driven environment.
Funding for textile and apparel manufacturing businesses can unlock everything from inventory scale and staffing to machinery upgrades and supply chain improvements. This guide will walk you through the top financing options, qualification requirements, and the best ways to use funding to grow your textile or apparel operation.
The fashion and textile sectors are resource-heavy. Manufacturers face constant pressure to improve efficiency, meet seasonal demand, and navigate supply chain volatility.
Purchasing bulk raw materials (fabrics, trims, dyes)
Upgrading or automating sewing machines and looms
Hiring and training skilled labor
Expanding production facilities
Managing cash flow between client payments and production cycles
Access to the right funding enables apparel manufacturers to scale production without compromising quality or timelines.
Here are the most practical and widely-used financing methods in the industry:
Covers up to 100% of machinery cost
Equipment acts as collateral
Preserves cash for other expenses
Best for: Cutting machines, industrial sewing machines, dyeing machines, CAD/CAM systems
Lump sum loans used for operating costs
Flexible use: payroll, inventory, utilities, etc.
Best for: Seasonal cash flow gaps or launching new product lines
Revolving credit facility
Borrow and repay as needed
Best for: Covering material costs or bridging supplier delays
Advance capital based on a client’s purchase order
Covers cost of production before receiving customer payment
Best for: Export or wholesale manufacturers with long lead times
Government-backed loans up to $5 million
504 for real estate/equipment, 7(a) for general use
Best for: Long-term expansion and factory improvements
Identify specific funding needs
Choose the right loan type
Prepare business financial documents
Obtain vendor quotes or PO contracts
Apply with lender or SBA partner
Review terms and interest rates
Invest funds strategically to scale
Here’s how financing can transform your operations:
Modern equipment boosts efficiency, consistency, and compliance.
Computerized sewing machines
Textile printers
Spreading, cutting, and pressing systems
ERP software to manage production scheduling
Use working capital or PO financing to:
Purchase fabric, zippers, buttons, and tags
Meet large B2B wholesale contracts
Produce seasonal or custom collections
Garment production is labor-intensive. Funding can help:
Recruit skilled pattern makers and machine operators
Offer onboarding and training
Retain staff through better wages or shift incentives
Invest in:
Leasing or building new production space
Upgrading ventilation, lighting, or workflow layout
Opening regional factories or fulfillment hubs
Consumers and brands are demanding transparency.
Invest in organic or recycled materials
Implement compliance systems (WRAP, OEKO-TEX)
Fund energy-saving machines to reduce emissions
To get approved, you’ll need to demonstrate stability and scalability.
Annual revenue of $100K+
Positive or improving cash flow
Profit margins, gross cost of goods sold (COGS), and runway
POs or invoices from brands, wholesalers, or retailers
Track record of delivering on time
620+ personal credit score
Business credit helps for larger loans
Growth projections
Vendor quotes for equipment or renovations
Timeline for ROI
💡 Tip: Lenders are more confident when you show diversified revenue or multiple client channels.
Case Study: Apex Apparel Co.
Problem: $250,000 wholesale order from a national retailer, but limited working capital
Solution: PO financing covered fabric and labor upfront
Result:
Delivered on time
Secured follow-up orders
Grew revenue 38% within 6 months
Takeaway: Smart funding helped them say “yes” to growth they couldn’t otherwise afford.
With Section 179, businesses can deduct the full purchase price of qualifying equipment in the year it’s placed in service—even if it’s financed.
Financed $120,000 worth of textile printing machines
Eligible to deduct the entire $120,000 from taxable income
Potential tax savings: $24,000–$36,000 depending on bracket
Always consult your CPA to take full advantage
In the fast-moving world of fashion, funding for textile and apparel manufacturing can make the difference between keeping up—or falling behind. Whether you're buying machines, scaling orders, or expanding capacity, the right financing ensures you stay competitive and profitable.
Need Funding for Your Factory or Fashion Brand?
Explore customized loan options today or connect with our advisors to build a growth plan tailored to your production needs.