MiMfg Magazine April 2017 | Page 8

8 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