Factoring for engineering firms

• Cash flow challenge: Engineering companies often face long client payment terms while covering high upfront costs for materials, wages, and energy.

   

• Perfect for: Engineering and fabrication firms, subcontractors, and component manufacturers needing a consistent flow of funds to meet project costs and supplier payments.

Novuna helps engineering firms release cash from unpaid invoices through factoring either through our award-winning in-house service or by comparing trusted providers to secure the right solution for your business.

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How factoring works for engineering firms

Factoring gives engineering businesses fast access to cash tied up in client invoices, helping you manage working capital and fund growth without waiting months for payment.

Here’s how it works:

1. You complete your engineering work and issue an invoice to your client.
   
   

2. Novuna advances up to 90% of the invoice value within 24–48 hours.
   
   

3. We handle the payment collection process for you.
   
   

4. Once the client pays, you receive the remaining balance (minus a small fee).

This allows you to maintain project continuity, pay staff and suppliers on time, and keep your cash flow steady, even when client payment cycles stretch to 60 or 90 days.

Benefits of factoring for engineering firms

• Smooth cash flow: Unlock capital tied up in long-term projects.
• Fund materials and wages: Pay suppliers and staff without waiting for client payments.
• Take on larger contracts: Confidently grow your business and bid for bigger projects.
• Avoid payment delays: Eliminate the strain of slow B2B payments.
• Strengthen supplier relationships: Maintain consistent payments to vendors.
• Save time: Let Novuna manage collections so you can focus on engineering excellence.
  

Factoring vs invoice discounting for engineering firms

How factoring supports engineering businesses

Factoring provides stability for firms that:

• Manage extended project payment terms from contractors or councils.
• Need to purchase raw materials before receiving payment.
• Balance energy and equipment costs alongside ongoing projects.
• Want to expand capacity by hiring more staff or upgrading machinery.
• Rely on large corporate clients with 60–90 day terms.

With reliable funding, your business stays productive, competitive, and ready to take on the next challenge.

Related funding options for engineering firms

Factoring is often combined with other forms of finance to build a strong funding foundation:

• Invoice discounting: maintain control while unlocking cash from unpaid invoices.
• Asset-based lending: use your equipment, vehicles, or stock to secure additional capital.
• Working capital loans: support daily operations and overheads.
• Equipment finance: fund new machinery or upgrades without upfront costs.
  

These products work together to provide complete financial flexibility for your security business.

Boost your cash flow Speak to an expert

How Novuna Business Cash Flow can help

At Novuna, we understand that engineering firms operate in a world of tight deadlines, long projects, and fluctuating costs.

Speak to our experts today and get a great fit for your situation.