Invoice Finance for Manufacturers | Release Cash from Your Sales Ledger
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: Invoice finance advances a manufacturer 80% to 90% of each invoice the day it is raised, closing the gap between paying for raw materials and labour upfront and waiting 60 to 90 days for payment. Facilities typically run from £50k to £10M and grow with your ledger. We are a broker and place factoring and discounting for UK manufacturers.
Manufacturing has a structural cash problem. You commit to raw materials and labour weeks or months before you see payment, so a 90-day credit term on a £300k order can quietly strangle a business that is otherwise profitable on paper. Invoice finance advances you 80-90% of each invoice's face value as soon as you raise it, with the balance (less the lender's discount fee) paid once your customer settles.
It works particularly well in manufacturing because your invoices are clean. You are selling B2B, the delivery is verifiable, and acceptance of goods is documented. Lenders price accordingly. Advance rates dip when a single debtor makes up more than 25-30% of your ledger, or when you export to markets where debt recovery is harder, so the spread of your debtor book matters.
The facility sits on a rolling 12-month basis and moves with your turnover. Win a major contract and see invoice volumes jump 40%, and the facility increases without you going back to renegotiate. That is the practical difference between this and a fixed overdraft.
We are a broker, not a lender, so we cannot promise a rate or an approval. The lender sets pricing once it has seen your debtor book, your bad-debt history, and your customer spread. What we do is match you to the right lender from the outset, because the ones with genuine appetite for manufacturing ledgers are not always the ones with the biggest marketing budgets.
Key Benefits
- Advance rates of 80-90% on UK B2B invoices mean you are not waiting 60-90 days to fund the next production run
- The facility scales with order volume, so a large new contract does not need a separate funding conversation
- Confidential invoice discounting keeps your customers unaware, provided your turnover is above roughly £500k and your credit control is solid
- Non-recourse structures transfer bad-debt risk to the lender on approved debtors, which matters when you supply large buyers on long terms
- Stage-payment invoices for deposit, delivery and acceptance can each be funded as they are raised, which manufacturing lenders are set up to handle
Frequently Asked Questions
Can I combine invoice finance with stock finance?
Yes, and for manufacturers it often makes sense. Invoice finance funds your receivables; stock finance funds raw materials or finished goods. Some lenders offer an integrated facility covering both, which simplifies the administration. The two facilities are assessed separately, so approval for one does not guarantee the other.
What advance rate will I get?
Typically 80-90% of invoice value for UK B2B debtors. Export invoices, debtor concentrations above 25%, or industries with higher dispute rates attract a lower advance rate. The lender decides after reviewing your ledger, not before, and no broker can commit a rate on its behalf.
How does it work with stage payments?
Each milestone invoice, whether that is 30% on order, 40% on delivery, or 30% on acceptance, can be funded as it is raised. Lenders with manufacturing books see this structure regularly and are comfortable with it.
Will my customers know I am using invoice finance?
Not if you use confidential invoice discounting (CID). Under CID, your customers pay into a designated account but see nothing that indicates third-party involvement. It is generally available to manufacturers with turnover above around £500k who run their own credit control.
Invoice Finance calculator
Move the sliders for an instant estimate. Free to use, no sign-up.
Cash advanced now
£42,500
Fee
£750
Net received
£49,250
Held back
£7,500
Illustrative estimate only, not a quote or financial advice. A broker will confirm exact terms based on your circumstances and lender appetite.
Work out your numbers
Related Funding Options
Invoice Finance UK: Fund Your Sales Ledger, Not Your Property
Invoice finance advances up to 90% of an unpaid invoice, often within a day of raising it. We place factoring & discounting facilities for UK limited companies across most sectors, with no property charge required.
Trade Finance for Manufacturers
UK manufacturers paying overseas suppliers before finished goods sell can use trade finance for manufacturers to bridge the gap. We place transactions from £25k to £5M with lenders who understand manufacturing lead times.
Stock Finance for Manufacturers
Stock finance for UK manufacturers: revolving facilities secured against raw materials, WIP, and finished goods to keep production running without waiting on customer payments.
Invoice finance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.