Manufacturing
The next order should not wait for the last one to pay.
Raw materials, labour and freight go out before the invoice does, and the payment lands three months later. We fund the shipped invoice so capacity is the constraint rather than cash.
Components, assemblies, capital goods and contract manufacturing.
Why it fits
Growth eats cash before it produces any.
Winning a larger order is the worst thing that can happen to a manufacturer's balance sheet in the short term. Materials and labour have to be funded up front at the new volume while the receivables from the previous run are still outstanding, and the gap widens exactly when you are growing fastest.
The usual answer is a fixed facility sized on last year's accounts, which means the ceiling arrives precisely when you need it least. Invoice finance scales with what you have actually shipped instead: more invoices, more available funding, without renegotiating a limit.
It also fits how manufacturers get paid. OEM and distributor buyers on 60 to 120-day terms sit squarely in the tenor this product funds, and the funding clears when their payment arrives.
- Funding that grows with shipped volume, not with an annual review
- No property charge and no fixed ceiling to renegotiate
- Pay material suppliers early and keep the settlement discount
Documents
What manufacturing shipments turn on.
The core set plus the things that make an industrial invoice reconcile. Most of the delay in this sector is part shipments and specification drift.
- 01 Purchase order or supply agreement
- Proof of the price and quantity agreed. With a framework agreement plus call-offs, we need the call-off that this invoice relates to.
- 02 Part shipments, stated
- Shipping 80% and invoicing 100% to reconcile later is the single most common reason a manufacturing invoice is only partly funded. Invoice what shipped.
- 03 Inspection or test certificates
- Where the contract prices on specification or requires factory acceptance. A held certificate is a held payment.
- 04 Bill of lading or air waybill
- The document that says the goods left your control. Incoterms determine whether the receivable existed on your invoice date.
- 05 Packing list with matching quantities
- Cross-checked against both the invoice and the shipping document. Unit-of-measure mismatches, pieces against cartons, are a frequent culprit.
- 06 Consistent part numbers and descriptions
- The same identifiers on every document. Internal part codes on the invoice and a generic description on the bill of lading cannot be reconciled without a person.
Questions
What manufacturers ask.
Can you fund the raw materials before we produce?
Not through invoice finance, which starts at the invoice for delivered goods. Pre-shipment and purchase-order funding are different products with different risk, and we will give you a straight answer rather than an encouraging maybe.
We invoice on milestones for capital equipment. Does that work?
It can, where each milestone is a certified, accepted stage with documentation behind it. Milestones that are purely calendar-based with no delivery event are much harder, because there is no receivable to secure against.
Will this show as debt to our own bank?
It depends on the structure and your auditor's view. Talk to them before you sign. We will explain the mechanics to your finance team in whatever detail they need, but the opinion has to be theirs.
Our buyer holds retention until final acceptance. Can that be funded?
The retention portion generally cannot, because it is contingent. The rest of the invoice usually can, and we will make clear which part we are advancing against.
Do you need a charge over our plant or our stock?
No. The receivable is the security. We do not take a charge over equipment, inventory or property.
How quickly can we add a new buyer?
A new buyer needs assessing before their invoices are fundable, usually days, not weeks. It is worth telling us about a buyer while you are still negotiating, so the limit is ready when the order is.
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Start small
Send us one invoice.
One shipped invoice with its documents and the buyer's name, and we will tell you what we could advance and roughly what it would cost.
- An indicative answer, usually the same day
- A read on your document set before you commit
- No cost and no obligation to draw