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MiMfg Magazine
April 2017
Growth Capital for Michigan Manufacturers
By Brooks Crankshaw • Highland Ridge Capital
Michigan manufacturers are a critical
demographic within the state’s economy,
and typically seek growth funding from
their local banks. When small and mid-
scale banks do not offer manufacturers
the financing options or flexibility they
need to accommodate their growth,
private funding can fill that gap.
Understanding the
Need for Financing
Without consistent access to funding,
manufacturers simply cannot accommodate
growth, change, expansion or innovation.
Michigan manufacturers typically
seek out financing for any of the
following reasons:
• Expansion & Addition to Staff
• Development or Refinement of
Products or Services
• Building Additional Facilities or
Locations
• Acquirement or Vertical Integration
of Another Company
• Restructuring of a Business’s
Balance Sheet
Many business owners are not aware of
the broad range of options available to them
beyond the traditional financing methods.
Typical Financing Solutions
for Manufacturers
Manufacturers primarily seek financing
from local banks. Per a study by the
Milken Institute, less than one-third
of mid-size manufacturers are aware
of funding sources beyond the bank
or private equity firms. Local banks’
capabilities often restrict available
financing options, amoun