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Manufacturing Industry Factoring

It is likely you already have the ability to secure an invoice finance deal which will be able to fund almost every aspect of your business.

Particularly for the manufacturing industry, you are often required to allow customers time to settle their debts with you after you have supplied the goods, perhaps up to 30, 60 or even 120 days in some of the more extreme cases. Invoice finance allows the release of up 100% of the value of these invoices so you can use the cash instantly to cover costs such as paying suppliers, rent, payroll and machinery repair.

The use of the cash advance is up to you, with many manufacturing companies using their newly found cash flow solution to purchase new machinery which allows increased productivity and growth.

Advance Unpaid Cash with Manufacturing Finance

If you wish, you can request for the factoring lender to advance you the percentage value of your invoice whilst also taking on responsibility for management and collection of debts owed to you. This saves your time and admin costs as you are effectively outsourcing your credit control facility, but we understand this isn\’t for everyone.

Manufacturing finance can also come in the form of invoice discounting which is typically taken up by firms which already have an established credit collection facility. Invoice discounting for manufacturing companies is a confidential facility which means your customers need never know you are using it.

The Benefits of Invoice Finance for Manufacturers

There are many advantages of choosing either manufacturing factoring or manufacturing invoice discounting as your cash flow funding solution:

  • You now have the financial capacity to afford the costs of those larger jobs which you may have historically had to turn down. The percentage based advance rate means you receive up to 90% of a small job just as you will receive up to 90% of a large job, so your business can grow.
  • You now have funding to pay off suppliers, pay wages and afford other costs of a job, which can mean better relationships with key stakeholders.
  • Invoice finance can provide up to four times the amount of cash to use today than most traditional bank loans or overdrafts provide.
  • You can also use the cash to invest in new machinery and equipment to help grow your manufacturing business. NOTE – if at the moment you only require funding for a particular asset, our asset finance advice may be the best funding solution.
  • Invoice finance allows you to purchase larger volumes from suppliers which can lead to a better relationship and bulk buy discounts.
  • Invoice finance is a flexible form of funding, reactive to seasonal trends or even unforeseen peaks in demand as the percentage value used is kept constant no matter what the size of the invoice.
  • There is no need to be a property owner or secure the cash advance against valuable assets unlike most bank loans and overdrafts as invoice finance is secured on the knowledge of future payment from your customers.

If you are interested in any manufacturing funding products, click on the compare quotes button below to speak to a consultant today, free of charge.

The Manufacturing industry has it\’s own set of funding challenges. Let us help you find the best funding solution for your needs.

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Visit our case studies feed to find out more on how alternative finance products such as invoice finance have helped UK businesses in all industries and turnover.

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"Very polite and a professional team of financial advisers who seem to know their business, work well within their industry and get a result."-Invoice Finance Introduction

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