Invoice Financing for Manufacturing
You have produced the goods and shipped the order, but payment will not arrive for 30-90 days. Turn your outstanding invoices into immediate working capital to fund the next production run without waiting for customer payment.
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Manufacturing Accounts Receivable Reality
Manufacturing creates inherent cash flow gaps. You pay for materials and labor weeks or months before receiving customer payment. Invoice financing bridges this gap by converting receivables to immediate capital.
Extended Payment Terms
Major retailers and distributors typically demand Net 60-90 payment terms. Manufacturers must accept these terms to win business.
AR as Percentage of Assets
Accounts receivable often represent 25-40% of a manufacturer's total assets. This capital is locked until customers pay.
Production vs. Payment Timing
Materials and labor are paid 30-60 days before products ship. Customer payment arrives 30-90 days after shipping. Total gap: 60-150 days.
Growth Constraint
Growing manufacturers often cannot take larger orders because they cannot float the extended receivables period.
The Manufacturing Receivables Challenge
Invoice financing solves the timing gap between production costs and customer payment.
Cash Locked in Receivables
Your products are shipped, but hundreds of thousands sit in receivables while you need to buy materials for the next order.
Long Payment Terms
Big customers demand Net 60 or Net 90 terms. You cannot refuse without losing the business, but it strains cash flow.
Growth Limited by AR
You could take larger orders, but cannot afford to float the production costs for 60-90 days until payment.
Material Supplier Terms
Your suppliers want Net 30 payment while your customers pay Net 60-90. The gap creates constant cash pressure.
Seasonal Order Surges
Peak season orders mean peak receivables. Cash is tied up in invoices exactly when you need it for production.
New Customer Onboarding
Landing a new major customer is exciting until you realize you need to float their orders for 90 days.
Manufacturing Invoice Financing Process
Simple process to convert invoices to immediate working capital.
Submit Invoices
Submit your B2B invoices from shipped orders to creditworthy customers.
Same day
Invoice Verification
We verify the invoice and confirm customer creditworthiness.
24 hours
Advance Payment
Receive up to 90% of invoice value deposited to your account.
24-48 hours
Balance Settlement
When your customer pays, receive the remaining balance minus the factoring fee.
Upon payment
Turn Invoices Into Production Capital
Invoice financing advances you up to 90% of your manufacturing invoice values immediately, so you can fund the next production cycle while waiting for customer payment. Keep production running without cash flow gaps.
Immediate Capital
Get up to 90% of your invoice value within 24-48 hours instead of waiting 30-90 days.
Fund Continuous Production
Do not slow production waiting for customer payments. Keep lines running with immediate capital.
Customer Credit Based
Approval considers your customers' creditworthiness, making it accessible even with imperfect credit.
Selective Financing
Choose which invoices to finance. Use it when you need to accelerate specific receivables.
Accept Larger Orders
Take on bigger contracts without worrying about floating production costs for months.
Confidential Options
Non-notification programs keep our involvement private from your customers.
Manufacturing Invoice Financing Uses
Common situations where invoice financing supports manufacturing operations.
Large Order Production
Fund materials and labor for major orders while waiting for previous shipment payments.
Typical funding: Up to 90% advance
Seasonal Production Ramp
Scale production for peak season while receivables from early shipments are still outstanding.
Typical funding: Up to 90% advance
New Customer Launch
Fund production for new major customers without straining existing cash flow.
Typical funding: Up to 90% advance
Material Purchase
Buy raw materials immediately using capital from outstanding customer invoices.
Typical funding: Up to 90% advance
Payroll Continuity
Meet payroll obligations while waiting for customer payments to arrive.
Typical funding: Up to 90% advance
Growth Enablement
Take on additional business without the receivables backlog limiting capacity.
Typical funding: Up to 90% advance
Invoice Financing vs. Other Manufacturing Funding
Compare invoice financing to alternative funding solutions.
| Feature | Invoice Financing | Working Capital Loan | Line of Credit |
|---|---|---|---|
| Collateral | Invoices | Business assets | Business assets |
| Credit Focus | Customer credit | Your credit | Your credit |
| Funding Speed | 24-48 hours | 1-5 days | Same day draws |
| Repayment | When customer pays | Fixed schedule | Flexible |
| Best For | AR-heavy operations | General needs | Variable needs |
| Scales With | Invoice volume | Loan amount | Credit limit |
| Ongoing Access | Per invoice | Reapply | Revolving |
| Cost Structure | Factoring fee | Interest rate | Interest on draws |
Manufacturing Invoice Financing Requirements
Requirements for manufacturing invoice financing.
B2B Invoices
Outstanding invoices from creditworthy commercial customers for shipped goods.
Net 30-90 invoices
Creditworthy Customers
Invoices to established retailers, distributors, or commercial buyers qualify.
Established businesses
Invoice Documentation
Clear invoice documentation with shipping confirmation and customer acceptance.
Standard commercial invoices
Minimum Invoice Size
Individual invoices should meet minimum size requirements for efficiency.
$5,000+ per invoice
Goods Delivered
Products must be shipped and accepted. No progress billing or pre-shipment invoices.
Delivered goods
Operating History
Established manufacturing operation with customer relationships.
6+ months B2B history
Invoice financing focuses on customer creditworthiness rather than your credit. Manufacturers with credit challenges but quality customers often qualify.
Real Results
National Packaging Solutions
Corrugated Packaging, Georgia
The Challenge
The company had $1.8M in receivables from retailers paying Net 60-90 while needing $400,000 monthly for corrugated board and labor. Growth opportunities were limited by the receivables float.
The Solution
Invoice financing facility providing 85% advance on qualified invoices within 24 hours. Non-notification arrangement preserved customer relationships.
The Result
Immediately freed up $600,000 in working capital from existing receivables. Company increased production 35% by accepting orders previously declined due to cash constraints. Seasonal capacity expanded to meet holiday packaging demand.
“We were turning down orders because we could not float the receivables. Invoice financing unlocked the capital sitting in our AR. We grew 35% last year because we finally had cash to fund production.”
Manufacturing Invoice Financing Data
Statistics on invoice financing in manufacturing.
Invoice Financing Benefits for Manufacturers
Advantages of invoice financing for manufacturing operations.
Cash Flow Acceleration
Convert 30-90 day receivables into immediate working capital for production.
Customer Credit Focus
Approval based on customer creditworthiness, not your credit history.
Growth Enablement
Take on larger orders knowing you can fund production while waiting for payment.
Selective Use
Finance specific invoices as needed rather than committing to ongoing debt.
Relationship Preservation
Non-notification options keep financing private from your customers.
Scalable
Financing grows with your sales. More invoices means more available capital.