Invoice Finance for
Engineering Businesses
Unlock cash from unpaid invoices or client contracts to maintain smooth operations and ensure timely project completion.
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Turn Unpaid Invoices Into Cash To Keep Projects And Teams Moving
Engineering firms often face long project cycles and extended payment terms. Contracts can take months to complete, and invoices may not be settled until well after the work is delivered. For businesses with high overheads — wages, materials, subcontractors, insurance, and compliance — waiting for payments creates serious cashflow strain.
Engineering invoice finance provides a practical solution. By releasing up to 90% of the value of unpaid invoices within 24–48 hours, invoice finance ensures businesses have the working capital they need to continue operating smoothly. This facility bridges the gap between raising an invoice and receiving payment, allowing firms to focus on delivery and growth rather than chasing cash.
The Cashflow Challenges in Engineering
Unlike retail or fast-turnover sectors, engineering firms deal with long, complex projects. Key challenges include:
- Extended Payment Terms – Clients may take 60–120 days to settle invoices.
- High Project Mobilisation Costs – Contractors must fund staff, machinery, and materials upfront.
- Variable Workflows – Projects are seasonal and contract-driven, creating income fluctuations.
- Cashflow Gaps – Invoices raised may not align with supplier and payroll demands.
- Growth Barriers – Lack of liquidity prevents businesses from tendering for larger contracts.
Invoice finance smooths these gaps, ensuring businesses remain financially stable.
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How Invoice Finance Works for Engineering Firms
Invoice finance is a straightforward facility designed to accelerate access to revenue:
Raise Invoice
An invoice is issued to a client once work is completed.
Advance Provided
The lender releases up to 90% of the invoice value within 24–48 hours.
Client Pays Invoice
The customer pays the invoice directly to the lender.
Balance Released
The remaining 10%, minus fees, is passed back to the contractor.
This system allows engineering businesses to unlock working capital tied up in invoices and maintain predictable cashflow.
Types of Invoice Finance
Factoring
The lender manages collections directly with your customers. This is particularly useful for smaller operators without in-house credit control.
Confidential Invoice Discounting
The contractor maintains customer relationships while accessing funds.
Selective Invoice Finance
Choose which invoices to fund, offering maximum flexibility.
Each facility can be tailored to the needs of engineering businesses, depending on size, client base, and project model.
Benefits of Engineering Invoice Finance
Immediate Access to Cash
Unlock up to 90% of invoice value quickly.
Stabilised Cashflow
Cover costs without waiting for client payments.
Growth Enablement
Bid for larger contracts with confidence.
Reduced Reliance on Loans
Finance day-to-day operations without additional debt.
Improved Supplier Relations
Pay suppliers promptly, securing better terms.
Flexibility
Fund selected invoices or entire ledgers.
Why Invoice Finance is Essential in Engineering
Engineering projects often require months of investment before final payment is received. Without finance, businesses face cashflow shortages that can halt progress, damage supplier relationships, or even prevent contract fulfillment.
Invoice finance eliminates this risk by aligning income with expenditure. It ensures that the value of completed work is available immediately, rather than locked up in unpaid invoices. For many contractors, invoice finance is the difference between sustainable growth and financial instability.
Case Example – Managing Growth with Invoice Finance
An engineering contractor won a large civil engineering project but faced a 90-day payment term. To mobilise quickly, the firm needed working capital for staff wages, fuel, and equipment hire. By arranging an engineering invoice finance facility, the contractor accessed 85% of the invoice value within two days. This enabled them to deliver the project on time, pay suppliers promptly, and secure further contracts.
Why Choose MacManus Asset Finance?
At MacManus Asset Finance, we help engineering firms secure invoice finance facilities that suit their unique business models. Clients choose us because:
- Industry Knowledge – We understand engineering’s long payment cycles.
- Wide Lender Network – Access to multiple providers ensures competitive pricing.
- Tailored Solutions – Facilities matched to your contracts and client base.
- Fast Access to Funds – Quick approvals to prevent cashflow disruption.
- Long-Term Support – Ongoing relationships to adapt finance as you grow.
Key Takeaways
Long project cycles and slow client payments make cashflow management one of the toughest challenges in the engineering sector. Engineering invoice finance provides a flexible, reliable solution by releasing working capital tied up in unpaid invoices.
At MacManus Asset Finance, we deliver tailored invoice finance facilities that allow engineering businesses to manage operations confidently, take on new projects, and achieve long-term growth.
Construction Invoice Finance FAQs
Typically up to 90% of the invoice value, with the balance paid once the client settles.
No, selective invoice finance allows you to choose which invoices to fund.
With confidential invoice discounting, clients are unaware of the facility.
No, SMEs benefit equally, especially when managing cashflow gaps.
Yes, it provides working capital to take on larger contracts.
Facilities can often be arranged within a few days.
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