Invoice finance for manufacturers

• Cash flow challenge: Manufacturers facing long payment terms while managing the rising costs of materials, labour, and energy.

• Perfect for: Manufacturing and production businesses looking for faster, more predictable access to working capital without increasing debt.

Novuna helps manufacturers improve cash flow and working capital through tailored invoice finance facilities, either through our award-winning in-house service or by comparing providers and making sure you have a great deal for your situation.

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How invoice finance works for the manufacturing industry

Invoice finance is designed around the realities of manufacturing cash flow. Instead of waiting 60 or 90 days for clients to settle invoices, you can unlock funds from completed work almost immediately.

Here’s how it works:

1. You issue an invoice to your customer for delivered goods or completed orders.
2. Submit the invoice to your finance provider for approval.
3. Receive up to 90% of the invoice value within 24-48 hours.
4. The provider collects payment directly from your customer (in the case of invoice factoring) or you continue managing collections yourself (invoice discounting).
5. Once the customer pays, the remaining balance (minus agreed fees) is released to you.

Benefits of invoice finance for manufacturers

• Faster access to cash: Receive up to 90% of invoice value within 24–48 hours.

• Stabilised cash flow: Keep production running even when clients take longer to pay.

• Funding for new orders: Confidently accept large contracts without stretching finances.

• Supplier confidence: Pay on time, strengthening relationships and unlocking better terms.

• No additional debt: Invoice finance releases existing value from your ledger rather than adding loans.
• Scalable funding: Facilities grow with your sales, supporting seasonal or volume changes.

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The difference between Invoice finance vs factoring for manufacturing companies

Both options help manufacturers unlock cash from unpaid invoices, but they work slightly differently:

• Invoice finance (invoice discounting): You keep control of customer payments and collections, maintaining confidentiality while accessing up to 90% of invoice value within 24–48 hours.

• Invoice factoring: The finance provider manages payment collection on your behalf, giving you the same access to funds but with less administrative pressure on your internal team.

• Confidentiality: Invoice finance is usually undisclosed to your customers, while factoring is fully transparent.

• Best for: Invoice finance suits manufacturers with established finance teams, while factoring benefits growing firms that want to focus on production and outsource credit control.

Both solutions stabilise cash flow and ensure your business can meet supplier, payroll, and production costs without disruption.

Best practices for using invoice finance effectively

• Align your facility with forecasted production and order volumes.

• Use funding to negotiate better supplier terms and early payment discounts.

• Combine invoice finance with asset finance or equipment finance to support capital investment.

• Review customer payment patterns regularly to optimise your drawdown and reduce costs.

How Novuna Business Cash Flow can help

We’ve helped manufacturers across the UK unlock cash tied up in unpaid invoices to keep operations running and seize new opportunities. Our facilities are fast to set up, flexible in structure, and tailored to the needs of your manufacturing business.

Speak to our experts today and we will help you find a great fit for your situation.