Invoice Factoring Companies for Manufacturers
What is Manufacturing Factoring?
When payments take weeks or months to arrive, even the most successful manufacturing company has difficulty meeting their expenses. Rather than settling for cash flow instability and stunted growth, start factoring accounts receivable to secure the operating capital you need.
A manufacturing factoring company will purchase your unpaid invoices for delivered product and advance you 80 to 95 percent of their value up front. Unlike a loan, invoice factoring for manufacturing merely converts your existing receivables into cash that you can use to cover your operating expenses.
The Benefits of Working with Manufacturing Factoring Companies
Unlike a traditional bank loan, your company can immediately begin enjoying the benefits of manufacturing factoring. Don’t wait 60 to 90 days for payments. Instead, receive as much as 95 percent of your invoice value within 24 hours of invoice submission without creating new debt on your balance sheet!
Manufacturing factoring is a business-friendly process. You can fax or email copies of your open invoices and the factor will deposit funds directly into your account, eliminating the wait for mail delivery or the cost of overnight shipping.
Thanks to factoring receivables, you can use your increased working capital to cover every day operating expenses, as well as more substantial investments, to grow your manufacturing business. There are no restrictions or limits to how you can apply your cash, and your funding potential increases with your sales – without a new application!
Learn more: What is Invoice Factoring?
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How Does Invoice Factoring Work?
- Fill out a form or call us to get set up with the best manufacturing factoring company for your business
- Submit invoices for completed work to the manufacturing factor
- The factoring company will verify your invoices and deposit funds into your account within 24 hours
- Continue operating your company as usual while the factor engages in collections efforts
- Receive the remaining invoice amount, minus a small factoring fee, when the invoice is paid
The Process of Factoring Manufacturing Receivables is Simple
There are no restrictions on how you apply the funds you receive by factoring your invoices. Use the working capital to purchase new materials, update inventory, make payroll and other employment expenses, or invest in growing your business.
Whether you own a machine shop and want to factor, or need additional cash to pay employees for your chemical manufacturing company, the process is just as simple.
The manufacturing industry is poised for increased growth in the coming months – don’t miss out on new opportunities due to a cash flow squeeze.
Use Invoice Factoring to Grow Your Manufacturing Business
A factoring relationship means more to your business than immediate access to cash – though that is a substantial benefit! Still, there are additional significant advantages to financing your manufacturing company through factoring.
No monthly minimums or maximums: With manufacturing factoring, your funding potential is only limited by your sales. There are no minimum amounts you must factor to remain active, and no upper limits to avoid crossing. You can factor as much as you want, as often as you need to maintain the cash flow that works best for your business.
No long-term contracts: You will never be trapped in a factoring relationship. Most agreements are valid for six months to one year so you can regularly review how the relationship is benefiting you.
Manage and eliminate your current debt: Having a regular supply of cash on hand will allow you to turn your attention to the debt holding your credit rating down. Pay down old debts and increase your creditworthiness to qualify for future financing.
Don’t forget about volume discounts: Companies that factor a large amount of manufacturing receivables may qualify for a better rate. Volume discounts will be reflected in your factoring agreement.
Improve flexibility with your suppliers: Factoring enables manufacturers to negotiate early-pay discounts and to take advantage of bulk order specials and other payment incentives with suppliers, because you know you’ll have the working capital to cover it.
Save extra time and money: There are a few ways that invoice factoring for manufacturing can help you save even more time and money! First, your factoring company will provide credit and background verification services to you free of additional charge! Use these reports to make sure you are working with reliable customers without spending hundreds of extra dollars per year.
24/7 online reporting: Never wonder where your account stands or how long it takes your customers to pay. Your factor’s reporting system is available to you 24/7; with a unique login you can see every element of your account and address issues before they arise. With round-the-clock access to your account information, you can seamlessly integrate your factoring account with your other business records.
Approval with poor credit, funding to build credit: Manufacturing companies of all sizes and in all positions may qualify for accounts receivable factoring – even with little or no established business credit. At the same time, a key benefit of factoring is that immediate working capital can help you pay down old debt and revive your credit rating for future financing needs.
“When I first inquired about this service, I wasn’t sure how it worked. But after trying it, we are experiencing some great services. Thank you for helping out!”
— Linda, Manufacturing, Arizona
Invoice Factoring Doesn't Have to be Complicated
Do the work
Submit the invoice
Types of Manufacturing Companies that Factor
Many types of manufacturing companies factor their invoices, including:
- Machinery and metal
- … and others.
If your manufacturing business can benefit from additional cash, we can help you get there. Factor Finders works to get all types of manufacturers funding based on what you want and need from a factoring company.
Want to Know More? Let's talk. 855-322-8671
When Can My Company Start Invoice Factoring?
Beginning a manufacturing factoring program is fast and simple. Factor Finders’ wide network of manufacturing funding experts can approve your company for a credit line in as little as 3 to 5 business days with minimal paperwork!
You can qualify to factor your manufacturing invoices even if your company has poor credit or other financial issues. Why? Because the factor’s funding decision is based on your customers’ creditworthiness. We offer industry-low, competitive rates that work with your company’s working capital needs. There are no up-front or hidden application fees, so there is no risk to apply.
The following documentation is needed to complete the factoring application process:
- Your Articles of Incorporation
- Copies of the invoices you wish to factor
- A current customer list
- A current invoice aging