Manufacturing invoice finance
Invoice finance options for UK manufacturers managing stock, supplier costs, production cycles and customer payment terms.
Why manufacturers use invoice finance
Manufacturing businesses often need to fund materials, labour, stock and production costs before customers settle invoices.
Manufacturers can have cash tied up throughout the production cycle, from purchasing raw materials to completing orders and waiting for customers to pay.
Long customer payment terms can create working capital pressure, especially where supplier costs, labour and overheads fall due earlier.
Manufacturing invoice finance can release cash against eligible unpaid customer invoices, while wider asset-based lending may be considered where stock, plant or machinery can also support funding.
Simple summary: manufacturing invoice finance can help bridge the gap between producing goods, raising invoices and receiving customer payments.
Where cashflow pressure appears in manufacturing
Manufacturing cashflow can be affected by stock, supplier costs, production cycles and customer payment terms.
Stock and materials
Cash can be tied up in raw materials, stock, components or finished goods.
Supplier costs
Suppliers may need paying before customer invoices have been settled.
Production cycles
Working capital may be needed throughout production, fulfilment and delivery.
Growth and orders
Larger orders can increase the amount of cash tied up before customers pay.
Invoice factoring
Can support manufacturers that want funding and support around collections or debtor management.
Invoice discounting
May suit established manufacturers that want to keep control of customer relationships.
Asset-based lending
Can be considered where stock, plant, machinery or other assets may support wider funding.
Add asset funding
May suit businesses that need to combine invoice finance with funding against other assets.
Manufacturing funding depends on invoices, stock, production timing and asset value.
Manufacturing invoice finance may suit businesses that need:
- ✓ Working capital while waiting for customers to pay
- ✓ Support around stock, suppliers or production costs
- ✓ Funding linked to eligible B2B invoices
- ✓ Flexibility to support larger orders or growth
Asset-based lending may be considered where:
- ✓ Stock or inventory may support wider funding
- ✓ Plant or machinery has suitable asset value
- ✓ Existing facilities need to be refinanced
- ✓ The funding need is wider than invoices alone
Manufacturing invoice finance questions
Common questions from UK manufacturers considering invoice finance or asset-based lending.
What is manufacturing invoice finance?
Manufacturing invoice finance is funding that can release working capital against eligible unpaid customer invoices, helping businesses manage cashflow while waiting for customers to pay.
Can invoice finance help with supplier payments?
It can help improve working capital availability, which may support supplier payments, materials, payroll, overheads or production costs.
Can stock support funding?
Potentially. Stock or inventory may be considered as part of a wider asset-based lending structure, subject to valuation, quality, ownership and funder criteria.
Is invoice finance suitable for growing manufacturers?
It may be suitable where growth increases the amount of cash tied up in unpaid B2B invoices, larger orders or customer payment terms.
What documents are usually needed?
Providers may request an aged debtor report, aged creditor report, latest accounts, recent management accounts and details of stock, customers, invoices or existing facilities.
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