Invoice Finance for
Manufacturing Businesses
Unlock cash from unpaid invoices or client contracts to maintain production schedules and meet delivery deadlines.
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Turn Unpaid Invoices Into Cash To Keep Manufacturing Operations Running
Manufacturers face one of the toughest financial challenges in the UK economy: long payment terms. Customers, particularly large retailers, wholesalers, and distributors, often demand credit terms of 60–120 days. For manufacturers, this means waiting months to get paid while continuing to cover wages, materials, energy, and overheads.
Manufacturing invoice finance provides a solution. By unlocking cash tied up in unpaid invoices, it gives manufacturers immediate access to working capital. Whether you are producing components, packaging, or finished goods, invoice finance ensures you can continue operating efficiently, pay suppliers on time, and take on new orders without being held back by cashflow constraints.
The Cashflow Strain of Manufacturing Payment Terms
The issue of delayed payments is particularly acute in manufacturing for several reasons:
- Large Orders, Long Terms – Customers place significant orders but demand extended credit.
- High Upfront Costs – Raw materials, labour, and energy bills must be paid immediately.
- Ongoing Investment – Manufacturers must continually invest in equipment and technology.
- Thin Margins – Rising input costs mean any delay in income creates strain.
The result is a constant battle to balance cashflow, with growth opportunities often missed due to lack of liquidity.
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How Manufacturing Invoice Finance Works
Invoice finance converts unpaid invoices into accessible cash:
Raise Invoice
You complete an order and issue an invoice.
Advance Received
A lender advances up to 90% of the invoice value, usually within 24–48 hours.
Customer Pays
Once your customer pays, the lender releases the remaining balance minus fees.
This simple process means you no longer have to wait months for payment, giving you control over your cashflow.
Types of Invoice Finance for Manufacturers
Invoice Factoring
The lender provides both funding and credit control, collecting payments from your customers directly. This is useful for businesses that want to outsource collections.
Invoice Discounting
You retain control of your sales ledger and customer relationships while accessing funds. This option is confidential and discreet.
Selective / Spot Factoring
Ideal for manufacturers who only want to release cash from specific invoices, rather than their entire ledger.
This ensures that cash is available immediately, rather than months down the line, giving construction businesses the confidence to continue operating smoothly.
Benefits of Manufacturing Invoice Finance
Faster Access to Funds
Up to 90% of invoice value within days.
Improved Cashflow
Cover wages, suppliers, and energy bills without waiting for payment.
Growth Enablement
Take on new orders and contracts without funding delays.
Reduced Stress
Avoid the pressure of long customer credit terms
Stronger Supplier Relations
Pay suppliers on time and secure better terms.
Flexibility
Choose factoring, discounting, or spot finance to suit your needs.
Why Invoice Finance Suits Manufacturers
Unlike many industries, manufacturers have no choice but to meet high upfront costs before generating revenue. Raw materials, packaging, labour, and energy all need paying for immediately. At the same time, major customers expect long credit terms, leaving manufacturers squeezed in the middle.
Invoice finance bridges this gap. For smaller firms, it ensures they can continue to grow without being starved of cash. For larger manufacturers, it provides the liquidity to manage large contracts, invest in efficiency, and remain competitive in global markets.
Why Choose MacManus Asset Finance?
At MacManus Asset Finance, we understand the pressures manufacturers face. We work with a wide panel of lenders who specialise in invoice finance for the manufacturing sector, ensuring facilities are tailored to your needs.
By working with us, you gain:
- Industry Knowledge – Over 20 years of experience supporting UK manufacturers.
- Access to Specialist Lenders – Funders who actively support businesses with long payment cycles.
- Tailored Solutions – Facilities structured around your customers and sales ledger.
- Fast Access – Decisions and funding arranged quickly.
- Ongoing Support – Advice and adjustments as your business grows.
Key Takeaways
Cash flow is the biggest barrier to growth in the manufacturing industry. Long payment terms force businesses to wait for money they have already earned, while costs continue to rise. Manufacturing invoice finance provides a solution by unlocking the value of unpaid invoices, giving manufacturers the liquidity they need to pay suppliers, invest in operations, and secure growth opportunities.
At MacManus Asset Finance, we connect manufacturers with flexible invoice finance solutions that strengthen cashflow and enable long-term success.
Manufacturing Invoice Finance FAQs
Up to 90% is typically available, with the balance paid after your customer settles.
Yes, with invoice discounting your customers don’t need to know you’re using finance.
Many lenders support international trade invoices, subject to credit checks.
The facility remains in place until the customer pays, though fees may increase for extreme delays.
No, it’s suitable for businesses of all sizes, including small workshops.
Yes, many manufacturers use both to create a complete funding strategy.
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