Lendus.

Invoice Finance for Manufacturers

Free up cash tied in your sales ledger to fund raw materials and production — without waiting 60–90 days for customers to pay.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Rates

0.75% – 2.5%

of invoice value

Advance

Up to 90%

of invoice value

Facility Size

£50k – £10m

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Why manufacturing businesses use invoice finance

Manufacturing businesses carry significant upfront capital requirements: raw materials must be purchased, production runs funded, and finished goods warehoused — often months before customer payment arrives. Trade buyers commonly demand 60 or 90-day payment terms, leaving manufacturers effectively financing their customers' operations from their own reserves. For growing businesses taking on larger orders, this can paradoxically make success more dangerous than stagnation. Invoice finance transforms the sales ledger into a live working capital tool, releasing cash against outstanding invoices within 24 hours so manufacturers can replenish materials, meet payroll, and commit to new production runs without depending on bank overdrafts or shareholder funds.

Finance types available

Invoice Factoring

Rate
0.75% - 2.0%
Advance
Up to 85%
Control
Factor collects from your customers

Best for: Small to mid-sized manufacturers without a dedicated credit control function, particularly those supplying multiple trade buyers

Invoice Discounting

Rate
0.85% - 2.5%
Advance
Up to 90%
Control
You maintain customer relationships

Best for: Larger manufacturers with established sales ledger management who need confidential funding at scale without altering customer payment processes

Selective Invoice Finance

Rate
1.0% - 3.0%
Advance
Up to 85%
Control
Choose which invoices to finance

Best for: Manufacturers with a small number of high-value customers who want to fund specific large orders or seasonal production peaks

Common challenges

Eligibility

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Market context

UK manufacturing contributes over £200 billion to the economy and employs approximately 2.7 million people. The Make UK / BDO Manufacturing Outlook survey consistently shows that working capital and cash flow are among the top operational concerns for manufacturers, with late payment from trade customers adding an average of 23 days to effective debtor days across the sector.

Frequently asked questions

Can invoice finance help me take on larger orders without running out of cash?
Yes — this is one of the most powerful uses for manufacturers. As your order volume grows, your invoice finance facility grows with it, automatically releasing more working capital against the higher invoice values you are raising. This means growth funds itself rather than straining your cash reserves.
Can I use invoice finance alongside a stock finance or trade finance facility?
Absolutely. Many manufacturers use a combination of trade finance or stock finance to fund raw material purchasing, and invoice finance to recycle cash from the sales ledger once goods are despatched. These facilities are complementary and some specialist lenders offer both under a single working capital package.
What if some of my invoices relate to part-shipments or phased deliveries?
Invoices for goods that have been delivered and accepted are eligible, even if they relate to a partial shipment. Invoices for goods not yet delivered or accepted would not qualify. Providers will review your terms with customers to understand how and when invoices become due.
How does invoice finance handle customers who raise purchase orders rather than accepting our invoices directly?
The facility is based on raised invoices, not purchase orders. Once you despatch goods and raise an invoice against an accepted PO, that invoice can be drawn against. Your provider will typically want to verify that the debtor acknowledges the debt, which may involve notifying debtors depending on the type of facility.
Will the funder take security over my business or assets?
Invoice finance is primarily secured against the book debts (invoices) themselves rather than fixed assets. However, most providers will require a personal guarantee from directors and may take a debenture over the business's assets. Security requirements vary by facility size and provider.

Related industries

Engineering

Guides and resources

What Is Invoice Discounting? Factoring vs Discounting Invoice Finance vs Business Loan Best Factoring Companies

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