Manufacturing

Invoice finance for manufacturing: bridging materials, production and payment.

Manufacturers buy materials, run production and ship goods, then wait for payment. Larger customers may also dictate extended terms. Invoice finance can help bridge the gap between production spend and customer receipts.

Discuss your options How invoice finance works

Initial discussionNo obligationIndependent broker guidance

Manufacturing cash-flow cycle — illustrative

Materials bought

Upfront

Goods shipped

Weeks later

Customer pays

30–90 days

Costs vs receipts, 8 weeks

Illustrative only. Every facility is priced and structured by the provider.

Typical issue

Working capital tied up between materials and payment

Where cash gets stuck

The three ways cash gets stuck in manufacturing

Materials before revenue

Raw materials and components are paid for long before the finished goods are invoiced, let alone paid.

Production costs run weekly

Wages, energy and machine time fall due throughout the production run, whatever the customer's payment terms.

Larger customers dictate terms

Winning a bigger customer often means accepting 60 or 90-day terms, sometimes longer, on larger invoices.

Sector view

Why manufacturing is different

Manufacturers carry a long cash cycle: buy, make, ship, invoice, wait. Invoice finance releases cash at the invoice stage rather than the payment stage, which shortens the wait considerably and lets the funding grow as order books grow.

Providers typically look at what is being invoiced and when. Invoices for goods delivered and accepted are straightforward. Stage or pro-forma invoices, bespoke tooling and long acceptance periods are harder, and some providers are more comfortable with them than others.

Because manufacturers often have stock and equipment as well as debtors, invoice finance is frequently used alongside asset finance or a stock facility. We help you think about the working capital picture as a whole rather than one product at a time.

How providers tend to look at manufacturing

Delivered and accepted

Invoices for completed deliveries fund most easily

Customer quality

Creditworthy trade customers support higher advances

Acceptance periods

Long inspection or acceptance terms are considered

Other funding

Works alongside asset and stock finance

What we can help arrange

Facilities that tend to suit manufacturing businesses

Confidential invoice discounting

For established manufacturers with a finance function who want funding that scales with the order book.

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Invoice factoring

Funding with credit control handled, useful where the back office is lean or customers pay slowly.

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Bad debt protection

Non-recourse cover against a major customer's insolvency, within agreed limits.

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Selective invoice finance

Fund the invoices from one large order or seasonal peak without a whole-ledger commitment.

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Suitability

Is invoice finance right for a manufacturing business?

Indicators, not rules. Providers make their own assessments and some specialise in situations others avoid.

Signs it may suit you

You invoice trade customers for goods delivered and accepted
Customers are established businesses on 30 to 90-day terms
Your order book is growing faster than cash flow
Stock and production spend sit ahead of receipts

Signs it may not be the answer

You invoice in stages or in advance of delivery
Sales are mainly to consumers
One customer dominates and is financially weak

If several of these apply, a specialist provider or another form of funding may be more appropriate. See the general suitability check.

Questions

Manufacturing questions, answered straight

Can invoice finance fund stock and materials?

Not directly. Invoice finance releases cash against invoices already raised, which you can then use for materials. Where stock itself is the constraint, a separate stock or asset facility may sit alongside. We can help you look at both.

What if my customers take 90 days to pay?

Longer terms are common in manufacturing and do not rule out funding. Providers will consider the terms, the customer's standing and your payment history when setting advance rates and limits.

Do export invoices qualify?

Some providers fund export debtors, often with credit insurance in place. Appetite varies by country and customer. We will tell you where your export book is likely to be well received.

Can I use invoice finance alongside asset finance?

Yes, this is a common combination for manufacturers. Any existing lender's security over your debtors would need to be considered, which is something we help you work through.

Other sectors

Where else invoice finance is well established

Recruitment & Staffing

Transport & Logistics

Wholesale & Distribution

Engineering & Fabrication

Business & Professional Services

Security & Facilities

Printing & Packaging

Construction-related Services

All sectors and the suitability check