Working capital against your buyer's invoice on 30 to 90-day terms.
Manufacturers purchase raw materials and labor upfront, produce finished goods, and invoice commercial buyers on net-30 to net-90 terms. The gap between production costs and customer payment is where cash flow tightens. Factoring against the buyer's invoice covers that gap.
- 01
Supplier payment terms are shorter than buyer payment terms
Raw materials, components, and packaging are purchased weeks or months before the finished product ships. Suppliers typically operate on shorter terms than the manufacturer extends to its buyers.
- 02
Production costs are fixed regardless of collection timing
A production line carries payroll, utilities, and maintenance costs on a fixed schedule. These costs continue independently of when buyer invoices are collected.
- 03
Larger orders require proportionally larger upfront investment
A new purchase order from a major buyer increases the upfront material and labor commitment. The capital outlay scales with order size while payment follows the buyer's standard terms.
Small to mid-size manufacturers producing finished or semi-finished goods for commercial buyers. Annual revenue $500K to $20M+.
- ·AR aging report
- ·Sample invoices and purchase orders from commercial buyers
- ·Supplier payment schedule (if relevant)
- ·Voided check for ACH funding
- 01Advance against approved buyer invoices so the manufacturer can pay suppliers and fund the next production run without waiting 60 or 90 days.
- 02The desk monitors the receivable and tracks payment status, so the manufacturer stays focused on production. The manufacturer retains responsibility for collection.
- 03Facility scales with invoice volume, so larger orders don't require a new credit application.
- Funding speedOnce approved
- AdvanceSubstantial against face value
- Buyer creditUnderwritten per invoice
- CollectionsMonitored by the desk. Client retains collection responsibility.
- VolumeScales with production
- Personal guaranteeNot required on the invoice