Materials paid now. Customers pay in 90 days.
Manufacturers pay for materials, labour and energy long before customers settle. Invoice finance turns shipped orders into working capital. Compare options from a panel of UK lenders.
No obligation. Your customers won’t be contacted as part of the comparison process. Facilities from £25,001.
- Invoice value
- £75,000
- Materials and labour already paid
- £52,000
- Advance at 85%
- £63,750
- Available for the next order
- Once the invoice is funded
- Balance on payment, less fees
- £11,250 minus fees
What is manufacturing invoice finance?
Manufacturing invoice finance releases cash against invoices a manufacturer has raised for goods delivered to business customers. Lenders advance most of each invoice’s value so production can continue without waiting 60 to 120 days for payment.
Manufacturing has one of the longest cash cycles in business. You buy raw materials, pay staff and run machines, ship the order, then wait for customers who often insist on long terms. Large retailers and OEMs can take 90 days or more.
Invoice finance ties your funding to what you sell. A bigger order raises a bigger invoice, which releases more cash. That makes it well suited to taking on large contracts, handling seasonal peaks or winning customers who will only buy on long terms.
Facilities can run as factoring, where the lender collects, or invoice discounting, where you keep collections in-house. Established manufacturers with strong credit control often prefer confidential invoice finance, so customers are not told.
How manufacturing invoice finance works
Funding follows the goods. Once an order is delivered and invoiced, it can be funded.
- 1
You deliver the order
Goods are shipped and proof of delivery is in place.
- 2
You raise the invoice
The invoice goes to your customer on their usual terms.
- 3
The lender advances cash
You receive an agreed percentage of the invoice, ready for your next production run.
- 4
The customer pays
When payment arrives, the balance is released to you, less fees.
Which manufacturers it suits
Manufacturing is well understood by invoice finance lenders, especially where invoices follow delivery of finished goods.
Usually a good fit
- You sell finished goods to other businesses on 30 to 120 day terms
- You are taking on larger orders or new contracts that need upfront spend
- Your sales are seasonal and cash gets tight before peak periods
- You supply retailers, distributors or OEMs who demand long terms
- You export and invoice overseas customers (some lenders fund export debtors)
Worth checking first
- You invoice before goods are delivered, such as deposits or pro-forma
- Customers can return goods freely or regularly claim credit notes
- Your contracts use stage payments for long builds
- A single customer makes up most of your sales
- You need funding against stock or machinery rather than invoices
What affects manufacturing funding
Lenders look at how your goods are sold as well as who buys them.
Proof of delivery
Invoices raised after delivery, with signed proof, are the most straightforward to fund.
Customer concentration
Supplying a few large customers is common in manufacturing. Lenders may cap how much of the facility relies on any one of them.
Export debtors
Overseas customers can often be funded, sometimes with credit insurance. Ask each lender which countries they cover.
Credit notes and returns
Frequent returns, rebates or quality claims reduce what a lender treats as collectable.
Manufacturing funding options compared
Most manufacturers choose between these structures based on size and how they run credit control.
| Invoice factoring | Invoice discounting | Confidential invoice finance | |
|---|---|---|---|
| Who collects payment | The lender | You | You |
| Customers are told | Yes | Usually, unless confidential | No |
| Typical fit | Smaller or fast-growing manufacturers | Established manufacturers with a finance team | Manufacturers with large key accounts |
| Export customers | Depends on the lender | Depends on the lender | Depends on the lender |
| Lender checks | Lender sees every payment | Regular reporting and audits | Stricter reporting and eligibility |
Available products and terms depend on your business, sector, turnover, debtor ledger and lender criteria.
Compare manufacturing lenders in one place
Factor Now checks your business and debtor ledger against the criteria of a panel of participating UK lenders, so you can see likely matches and indicative pricing before committing to anyone.
- 1Tell us about your businessWe verify available Companies House information automatically.
- 2Upload your aged debtor reportIt shows who owes you, how much and for how long.
- 3See matching lenders instantlyYour ledger is checked against participating lenders' criteria.
- 4Compare indicative funding and pricingNo waiting for quotes or callbacks.
- 5Progress with the lender you chooseContinue through to formal offer on Factor Now.
| Customer | Current | 1–60 | 61–90 | 91+ |
|---|---|---|---|---|
| Northgate Engineering Ltd | £26,064 | £66,557 | £6,093 | £1,693 |
| Brightway Supplies Ltd | £20,800 | £49,965 | £5,643 | £1,171 |
| Meadowbrook Foods Ltd | £31,129 | £72,750 | £9,771 | £3,729 |
| Total | £77,993 | £189,272 | £21,507 | £6,593 |
Export it from Xero, QuickBooks, Sage, FreeAgent or most other accounting systems. Older and concentrated debts affect how much of a ledger lenders will fund.
Manufacturing invoice finance questions
How does invoice finance help manufacturers?
It releases cash tied up in unpaid invoices for goods you have already delivered. That money can fund raw materials, wages and the next production run while customers work through long payment terms.
Can I fund invoices to overseas customers?
Some lenders fund export debtors, sometimes alongside credit insurance. Which countries and customers are accepted depends on the lender.
Can I get funding before goods are delivered?
Invoice finance usually funds invoices for goods already delivered. Funding for stock, purchase orders or machinery is a different type of finance and is not covered here.
What if I supply one very large customer?
Lenders may limit how much of the facility depends on a single customer, known as a concentration limit. A larger spread of customers usually increases availability.
How much can I release?
Lenders typically advance up to around 85 to 90% of approved invoices. Facilities through Factor Now start from £25,001.
Will my customers know?
With factoring, yes. With confidential invoice discounting, customers keep paying you and are not told. See confidential invoice finance.
Is Factor Now a lender?
No. Factor Now is a technology platform and not a lender. Participating lenders carry out their own checks and provide the facility.