Invoice Finance for Food &
Drink Manufacturers
Unlock cash from unpaid invoices or wholesale contracts to maintain smooth production schedules and timely deliveries.
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Turn Unpaid Invoices Into Cash To Keep Manufacturing Operations Running
The food and drink manufacturing industry supplies some of the UK’s largest retailers, wholesalers, and distributors. While these contracts are often lucrative, they come with long payment terms — typically 60 to 90 days. For manufacturers that must purchase raw materials, pay staff, maintain equipment, and manage energy costs, waiting months for invoices to clear can cause serious cashflow strain.
Food & drink invoice finance provides a practical solution by unlocking the value of unpaid invoices. Instead of waiting for customers to pay, businesses can access funds within days, ensuring stability and freeing capital to support ongoing operations.
Why Cashflow Challenges Are Acute in the Sector
Several factors make invoice finance particularly valuable for food and drink manufacturers:
- Extended Retailer Terms – Large supermarkets and distributors often insist on lengthy credit.
- High Operating Costs – Wages, energy, and ingredients must be paid regardless of income delays.
- Capital-Intensive Equipment – Maintaining and upgrading machinery demands ongoing investment.
- Regulatory Requirements – Food safety and compliance costs can’t be delayed.
- Seasonality – Income peaks during holidays and events, leaving uneven revenue cycles.
Invoice finance bridges the gap between delivering products and receiving payment.
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How Food & Drink Invoice Finance Works
Business loans provide manufacturers with a simple and flexible source of funding. The process typically follows these steps:
Invoice Raise
You supply goods and invoice your client.
Customer Payment
The client pays the invoice, typically into a trust account.
Advance Provided
A lender advances up to 90% of the invoice value, often within 24–48 hours.
Balance Released
The remaining funds are released, minus lender fees.
This ensures manufacturers have access to cash when it’s needed most.
Types of Invoice Finance for Food & Drink Manufacturers
Invoice Factoring
The lender manages collections directly with your clients, ideal for SMEs without internal credit control.
Invoice Discounting
Funds are advanced while you retain responsibility for collecting payments. Often offered confidentially.
Selective / Spot Factoring
Release cash from specific invoices, perfect for businesses with seasonal or large one-off contracts.
Benefits of Invoice Finance for Food & Drink Manufacturers
Cashflow Stability
Access funds quickly after invoicing.
Flexibility
Choose a structure that suits your operations.
Growth Support
Take on larger contracts without cashflow delays.
Supplier Confidence
Pay suppliers promptly and secure better terms.
Scalability
Facilities expand in line with your turnover.
Predictability
Greater control over financial planning.
Why Invoice Finance Fits the Food & Drink Sector
This sector is uniquely exposed to the risks of late payments and extended credit terms. A small bakery may supply supermarkets that take three months to pay invoices. A large manufacturer may have millions tied up in pending payments at any one time.
Invoice finance ensures these businesses have the liquidity to cover staff, materials, and compliance costs while waiting for retailers to settle accounts. By smoothing cashflow, it allows manufacturers to plan confidently and invest in growth opportunities.
Why Choose MacManus Asset Finance?
At MacManus Asset Finance, we specialise in helping manufacturers manage the unique cashflow demands of food and drink production. With more than 20 years of experience, we partner with lenders who understand this sector and can provide tailored solutions.
When you work with us, you benefit from:
- Industry Insight – Experience with retailer-driven credit terms and compliance pressures.
- Specialist Lenders – Funders with appetite for the food and drink industry.
- Tailored Facilities – Solutions structured around your business cycle.
- Quick Turnaround –Access to cash in days, not months.
- Ongoing Support – Guidance as your business grows and diversifies.
Key Takeaways
The UK’s food and drink manufacturers play a vital role in feeding the nation, but long client credit terms and high running costs make cashflow management challenging. Food & drink invoice finance bridges the gap by releasing cash tied up in invoices, allowing firms to stay operational and competitive.
At MacManus Asset Finance, we help firms secure invoice finance facilities that align with their specific needs, ensuring stability today and growth tomorrow.
Food & Drink Invoice Finance FAQs
Up to 90% is typically advanced, with the remainder paid when the client settles.
Yes, invoice discounting allows you to retain control and confidentiality.
Yes, selective facilities can be used to cover specific invoices or peak periods.
Facilities remain in place, though charges may apply for significant delays.
Absolutely, facilities are available for both small and large manufacturers.
No, in fact it often strengthens them by ensuring reliable operations and timely delivery.
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