🏭 Manufacturing Finance

Invoice Finance for UK Manufacturers

Bridge the gap between production costs and customer payment dates. Access up to 90% of invoice value as soon as goods are dispatched - compare 40+ UK lenders, free.

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The Challenge
The manufacturing cash flow gap

Manufacturing businesses face a structural working capital challenge: raw materials, energy, labour and machine time must all be paid for before a single finished unit reaches the customer. Then, once goods are dispatched and invoiced, customers routinely take 30 to 90 days to pay.

For many manufacturers, this means permanently funding two or three months of production costs out of cash reserves - reserves that should be deployed in growing the business, investing in equipment, or winning the next large contract.

How invoice finance solves it

Invoice finance for manufacturers works by advancing up to 90% of your outstanding invoice value as soon as an invoice is raised. The facility is revolving - as customers pay, the funds are recycled and available to draw against new invoices. Your cash position tracks your order book rather than lagging it by months.

Who is eligible?

  • Component manufacturers supplying automotive, aerospace and industrial sectors
  • Food and beverage manufacturers with major retailer customers
  • Plastic, metal, textile and electronics manufacturers
  • Contract manufacturers and OEM suppliers
  • Businesses supplying on extended trade credit to distributors or wholesalers

Invoice discounting for manufacturers

Many mid-sized manufacturers prefer invoice discounting - a confidential facility where the lender advances against your ledger without your customers knowing. You retain control of credit control and collections, and the arrangement is invisible to your supply chain. Facilities are typically structured around your full sales ledger or a subset of key accounts.

The manufacturer's cash flow problem

✗Raw materials and energy paid upfront
✗Labour costs due weekly regardless of sales
✗Customers on 60–90 day payment terms
✗New contract wins strain working capital

What invoice finance gives you

✓Up to 90% of invoice value on dispatch
✓Fund wages, materials and overheads
✓Accept larger orders without cash risk
✓Confidential - customers never know

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Benefits
Why manufacturers use invoice finance
🏭

Fund production, not just invoices

Access cash as soon as goods are dispatched - cover raw materials, energy and payroll without waiting 60 days for your customer to settle.

📦

Take on larger orders

Win a contract that needs you to scale production quickly. Your funding facility grows with your order book - no fixed credit limit holding you back.

🔒

Confidential by design

Invoice discounting facilities are invisible to your customers. Payments arrive to a bank account in your company name - no change to your customer relationships.

🌍

Fund UK and export invoices

Many lenders on our panel can fund invoices raised to international customers - useful if you supply into EU or global markets on extended credit terms.

FAQ
Manufacturing finance questions answered
Manufacturing businesses face long cash conversion cycles - raw materials and labour must be paid upfront while customers pay on 30–90 day terms. Invoice finance bridges this gap by advancing up to 90% of invoice value as soon as goods are dispatched, eliminating the wait for payment.
Yes. Many invoice finance lenders will fund against both UK and export invoices. Export invoice finance can cover customers in the EU and beyond, though advance rates and eligibility may vary by country and credit terms. We can match you with lenders who have strong export finance capabilities.
It depends on your team size and whether confidentiality matters. Invoice discounting is confidential - customers never know - and you retain control of credit control. Factoring involves the lender managing collections. Many mid-sized manufacturers prefer discounting; smaller operations often find factoring reduces admin burden significantly.
Most lenders require £100,000–£250,000 in annual turnover, though some specialists work with businesses below this. The quality and spread of your debtor book matters as much as the raw turnover figure.
Invoice finance specifically funds against your outstanding invoices. However, some lenders offer complementary trade finance or stock finance products that can fund raw material procurement. We can identify lenders who offer both within one facility.

Compare manufacturing finance from 40+ UK lenders - free

One enquiry. Your bank shows you one option. We show you forty - including lenders who specialise in manufacturing working capital.

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Prefer to talk it through?  Call us on 01625 467119 - or use the calculator for an instant estimate.