Stock Finance for Manufacturers
Manufacturers hold capital across three stock categories: raw materials, work-in-progress (WIP), and finished goods. Stock finance provides a revolving facility secured against this inventory, giving you the cash to maintain production without waiting for customers to pay.
Manufacturing stock finance is often combined with invoice finance — stock finance funds the raw materials, and invoice finance releases cash from the invoices once finished goods are shipped. Together, they provide end-to-end working capital coverage.
Key Benefits
- Fund raw material purchases to maintain production schedules
- Finance covers raw materials, WIP, and finished goods
- Combine with invoice finance for complete working capital
- Facility scales with your production volume
Frequently Asked Questions
Is work-in-progress (WIP) eligible?
Some lenders include WIP, though at a lower advance rate than raw materials or finished goods. WIP valuation is more complex, so lenders may require a clear production schedule and costing methodology.
Can I finance imported raw materials?
Yes. Stock finance can cover materials once they arrive at your premises. For funding the import itself (pre-delivery), trade finance or import finance is the more appropriate product.
What reporting is required?
Regular stock reports (typically monthly) showing quantities, values, ageing, and composition. Integration with your ERP or inventory management system can streamline this.
What if material prices fluctuate?
The facility is based on stock value at cost. If raw material prices rise, your stock value (and available facility) increases. If prices fall, the facility reduces accordingly. Lenders may apply a buffer for volatile commodities.
Related Funding Options
Invoice Finance for Manufacturers
Release cash from trade invoices to fund raw materials, production, and growth. Invoice finance designed for UK manufacturing businesses.
Trade Finance for Manufacturers
Fund raw material and component purchases from overseas suppliers. Trade finance for UK manufacturing businesses.
Asset Finance for Manufacturers
Finance CNC machines, production lines, and industrial equipment. Asset finance designed for UK manufacturing businesses.
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Learn About Our Broker NetworkCoreFi 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.