Do you offer invoice finance for manufacturers with long customer payment terms?
The short answer and why it matters
Yes — while Best Business Loans does not supply finance directly, we can introduce UK manufacturers to invoice finance providers that support extended customer payment terms, including 60, 90 and 120+ days. Our AI-enabled platform matches your business profile with lenders and brokers that actively fund manufacturing invoices, including export and multi-stage billing. You can request a Quick Quote, Decision in Principle, or Eligibility Check to see potential options without obligation.
Invoice finance helps manufacturers unlock cash tied up in unpaid B2B invoices, smoothing cash flow for materials, payroll, and production costs. For firms dealing with OEMs, Tier-1s, supermarkets, or public sector bodies that pay slowly, it can be a practical way to bridge long receivable cycles. Facilities can be confidential or disclosed, selective or whole ledger, and tailored to sector nuances.
Best Business Loans works as an independent introducer to lending partners and specialist brokers, many of whom focus on manufacturing and engineering. We aim to help you understand likely eligibility, costs, and structures before you invest time in a full application. Finance is subject to provider approval and terms.
What is invoice finance — and is it suitable for manufacturers?
Invoice finance advances a percentage of an approved invoice value shortly after you raise it, with the balance (minus fees) released when your customer pays. Manufacturers often pair invoice finance with purchase order funding or asset finance to support materials and tooling. It is generally suitable for B2B manufacturers with verifiable delivery or acceptance.
Which “long terms” can be funded?
Many providers consider terms up to 90–120 days, and some will stretch further for strong debtors or insured debt. Export invoices and framework contracts can be included if evidence and credit cover are adequate. Facilities are assessed on customer credit quality, sector, and how reliably invoices are approved and paid.
Quick benefits for manufacturers
- Release 70–95% of invoice value upfront.
- Aligns cash inflow with production outflow.
- Supports growth without diluting equity.
How it works for manufacturers on extended terms
There are two main routes: factoring and invoice discounting. Factoring includes collections support and is usually disclosed to customers, while invoice discounting is often confidential and suits firms with robust credit control. Selective facilities let you fund specific invoices or customers, useful where only certain accounts run on 90–120 day terms.
Providers assess your end-customers’ creditworthiness, debtor concentration, and terms of trade. Strong counterparties (e.g., listed manufacturers, public bodies, multinational buyers) can enable higher limits and longer terms. Many lenders also support credit insurance to protect against non-payment on long-dated invoices.
Manufacturing adds complexity such as staged invoicing, milestone payments, call-off schedules, and retention. Specialist funders understand proofs like goods despatched notes (GDNs), completion certificates, and framework call-offs, and can structure availability around these.
Factoring vs invoice discounting for manufacturers
- Factoring: Collections and debtor management included; helpful if you prefer outsourcing or want stronger lender oversight.
- Confidential invoice discounting: You retain credit control; usually suits more established firms with stable ledgers and systems.
- Selective/single-invoice: Fund specific invoices or buyers, useful for large, slow-paying customers or seasonal spikes.
Handling exports, stage payments, and retentions
Export factoring can be available where jurisdictions, Incoterms, and documentation are clear and customers are creditworthy. Staged billing may be fundable when milestones are contractually defined and signed-off. Retentions are less commonly advanced, but workarounds may exist depending on contract terms.
When invoice finance works best
- Creditworthy customers with stable payment behaviour.
- Clear delivery/acceptance evidence and unambiguous contracts.
- Predictable volumes or recurring order patterns.
For a broader view on sector routes, you can also explore our page on manufacturing finance here: manufacturing business loans and funding options.
Eligibility, costs and how much you could access
Eligibility varies by provider, but manufacturers typically need to be UK-based limited companies or LLPs with B2B invoices. A trading history of 6–12 months and minimum annual revenues (often £250k+) can be helpful, though some funders consider earlier-stage firms. Your customers’ credit quality matters more than your own in many cases.
Common criteria include verified delivery/acceptance, non-disputed invoices, and reasonable debtor concentration. Some lenders will insist on credit insurance for longer terms or high single-debtor exposure. Personal guarantees, debentures, and assignment of receivables are common security features.
Costs generally comprise a service fee plus a discount rate (interest) on funds drawn. Service fees often start around 0.25%–3.0% of invoice value or turnover covered, with discount rates commonly quoted as a margin over base/SONIA.
Illustrative cost example
As an example only: if you advance £200,000 at 85% against a 90-day invoice cycle with a typical discount rate and service fee, the monthly interest runs only on the funds used, not your entire ledger. If your customers pay early, total interest reduces. Actual pricing depends on risk, sector, debtor mix, and facility size.
Documents and information to prepare
- Recent management accounts and aged debtor/creditor lists.
- Sample contracts, terms of trade, and proofs of delivery/acceptance.
- Customer lists with credit limits, plus any credit insurance policies.
- Bank statements and details of existing security or debentures.
How much can you access?
Availability is driven by eligible invoice value and advance rates. Manufacturers often see 70–95% advances, with concentration caps to manage single-debtor risk. Larger facilities may scale as your order book grows.
How Best Business Loans matches you with the right provider
We use an AI-guided process to help you find suitable invoice finance partners quickly. Our system maps your profile — sector, turnover, debtor quality, typical payment terms, export exposure — to lenders and brokers open to funding manufacturers on extended terms. You save time by focusing only on viable routes.
Once you complete a Quick Quote, we’ll connect you to providers that fit your needs. You can discuss indicative terms, documentation, and timelines directly with them. There’s no obligation to proceed, and your data is handled securely and confidentially.
Many of our partners can provide an initial Decision in Principle within days if information is complete. Full onboarding usually involves KYC, facility documentation, notifications to customers (for factoring), and system setup. Turnaround is often faster for confidential discounting with clean ledgers.
Simple steps to get started
- Complete the Quick Quote form with details on your customers and typical payment terms.
- Our AI matches you with relevant providers for manufacturers with long terms.
- Review indicative structures, pricing, and eligibility with your matched partners.
- Submit documents for due diligence and receive formal offers.
- Go live, draw funds against approved invoices, and improve cash flow.
Why use Best Business Loans
- Sector-aligned introductions to specialist manufacturing funders.
- Options for long terms, export invoices, and milestone billing.
- Independent, transparent, and no-obligation enquiry process.
Ready to check eligibility?
Submit your Quick Quote to see potential providers and typical terms for your situation. We cannot guarantee approval or the lowest rate, but we aim to guide you to reliable finance partners. Funding remains subject to each provider’s criteria and underwriting.
Considerations, alternatives, FAQs and key takeaways
Invoice finance is powerful but not universally right. It changes how cash moves through your business, and you’ll need clean processes, clear documentation, and consistent credit control. Consider the effect on customer relationships, especially with disclosed factoring.
Potential drawbacks include costs if utilisation is low, concentration caps if one customer dominates, and ineligibility for disputed or staged invoices without proof. These can be mitigated with selective facilities, credit insurance, or a blended funding approach. Many manufacturers run invoice finance alongside asset finance or a flexible revolving credit facility.
Alternatives include asset-based lending, equipment finance, purchase order finance, trade finance, or a cash flow loan. The right mix depends on your order book, margins, and working capital cycle. A specialist broker can help compare structures.
Frequently asked questions
Can you help if my customers pay in 120 days?
Yes, we can introduce you to providers that consider 120-day terms, subject to underwriting, customer credit strength, and documentation. Credit insurance may be requested for very long terms. Eligibility is case-specific.
Will invoice finance work with call-off or framework agreements?
Often yes, if delivery and acceptance can be evidenced and invoices are undisputed. Providers evaluate contract clarity, sign-offs, and buyer credit. Some may offer selective funding per call-off.
What advance rate can manufacturers expect?
Typical ranges are 70–95% of invoice value. Rates depend on debtor quality, sector risk, and concentration limits. Final terms are set by the provider.
Can export invoices be funded?
Export factoring or discounting is available for many jurisdictions with proper documentation and credit evaluation. Incoterms and evidence of delivery matter. Insurance can help extend limits.
How fast can I access funds?
After onboarding, drawdowns on approved invoices can be made within 24–48 hours at many providers. Initial setup timelines vary based on complexity and documentation. We aim to match you quickly so you can assess speed and fit.
Will this impact my relationships with customers?
Disclosed factoring involves notifying customers, which many large buyers are accustomed to. Confidential discounting keeps control in-house. Choose a structure that aligns with your preferences.
Key takeaways
- We can introduce UK manufacturers to invoice finance providers comfortable with 60–120+ day payment terms.
- Facilities include factoring, confidential invoice discounting, and selective single-invoice funding.
- Eligibility focuses on buyer creditworthiness, clear documentation, and reliable payment behaviour.
- Costs typically include a service fee plus a discount rate on funds drawn.
- Submit a Quick Quote for an Eligibility Check or Decision in Principle with no obligation.
Important information and compliance
Best Business Loans is an independent introducer. We do not offer loans or provide financial advice; we connect you with lenders and brokers who may be able to help.
Any finance is subject to status, affordability checks, and the provider’s underwriting and terms. Fees, rates, and security requirements vary by provider; late or missed payments can affect your credit position and may result in additional costs or enforcement action.
We aim to ensure our information is fair, clear and not misleading and to align with UK advertising standards. Please seek independent professional advice if you are unsure about suitability.