Supply chain finance for manufacturing companies

• Cash flow challenge: Manufacturers facing pressure on cash flow when suppliers need paying before customer invoices are settled and delays in raw material sourcing or production.

• Perfect for: Manufacturing companies that manage complex supplier networks and want to pay suppliers promptly while maintaining longer payment terms and stable working capital.

Novuna helps manufacturers strengthen their supply chain through flexible supply chain finance solutions either through our award-winning in-house service or by comparing providers and making sure you have a great deal for your situation.

Boost your cash flow Speak to an expert

Strengthen your supply chain in your manufacturing business

Supply chain finance (SCF), also known as reverse factoring or supplier finance, provides a funding bridge between buyers and suppliers. It enables suppliers to receive early payment at a discounted rate while allowing the buying business more time to pay, improving cash flow for both sides of the relationship.

For manufacturers, this means you can maintain production momentum, build stronger supplier relationships, and avoid disruption due to delayed payments or material shortages.

How supply chain finance supports manufacturers

Manufacturing relies on reliable access to materials, consistent supplier relationships, and strong financial management. Supply chain finance can enable you to:

• Maintain continuity of supply: Prevent bottlenecks and delays in the production process.

• Strengthen supplier trust: Small suppliers gain quicker access to cash, improving long-term relationships.

• Optimise working capital: Extend your payment terms without straining your partners.

• Increase resilience: Protect your operations from market fluctuations or late client payments.

Boost your cash flow Speak to an expert

Benefits of supply chain finance for manufacturing

• Improved cash flow management: Release liquidity across your supply chain and stabilise working capital.

• Faster supplier payments: Suppliers receive funds early, reducing pressure on their operations.

• Enhanced negotiation power: Stronger relationships and reliability often lead to better pricing or priority service.

• Supply chain stability: Minimise the risk of disruption caused by supplier cash flow issues.

• Sustainability and reputation: Support smaller suppliers and strengthen your commitment to ethical, resilient supply networks.

How supply chain finance works

1. Supplier delivers goods or materials and issues an invoice.
   
   
2. You approve the invoice for payment with your supply chain finance provider.
   
   
3. Supplier receives early payment (usually within 24-48 hours) from the provider.
   
   
4. You repay the provider later, in line with your agreed payment terms.

How Novuna Business Cash Flow can help

We’ve helped manufacturers across the UK streamline their supply chain funding and improve supplier confidence through tailored financial solutions.

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