Get Paid on Shipped Orders, and Fund the Next PO.
Ship the order, invoice your customer and get 80–90% of the invoice the same day. If a large purchase order needs cash before it ships, Sigma provides PO funding directly or through a PO funding partner.
- Invoices for goods shipped to business customers
- Typical advance of 80–90% of invoice face value
- PO funding, directly or through a partner
- No personal credit checks on owners
- 600+businesses funded
- $900M+invoices purchased
- 97%fund again
Estimate your advance
- Advance, funded the same day you submit
- $200,000
- Reserve, paid to you when your customer pays
- $50,000
- Est. fee, taken from the reserve
- −$6,125
- Total you receive
- $243,875
Estimate only. Advances run 70–97% by industry; your exact rate and fee are in your written proposal. No hard credit pull to start.
Our Approach
How Sigma Works for Manufacturers
Funding When Goods Ship
Invoice your customer for goods you've shipped, and Sigma advances 80–90% the same day once your customer confirms the invoice is due and payable. For orders that haven't shipped, ask about PO funding.
Your Customers' Credit Carries the Most Weight
We review the payment history and credit of the customers you invoice. We don't pull owners' personal credit reports or scores, and there's no hard limit on how much one customer can owe you.
Same-Day Funding After Setup
Onboarding typically takes 24–48 hours. After that, invoices you submit are funded the same day once they're verified.
Recourse, With Optional Credit Insurance
Recourse factoring is our standard structure. Add credit insurance to cover a customer who doesn't pay, per the policy terms.
A business like yours
New to factoring, and growing because of it
“We were new to factoring when we started with Sigma. Looking back, I don't know how we survived, let alone grew, without it. It's made that much of a difference.”
Linda · Distribution · Georgia- Started as
- New to factoring
- Industry
- Distribution
- Location
- Georgia
Distribution company in Georgia, first-time factoring client. Individual results vary.
What Qualifies
What Sigma Funds for Manufacturers.
Factoring funds invoices your customers owe you for. Deposits, progress billing, returns and deductions are common in manufacturing, and each is accounted for based on your situation. Tell us about them when you apply.
| Receivable | How Sigma handles it |
|---|---|
| Invoice for goods shipped or delivered to a business customer | Funded once your customer confirms it's due and payable, with no chargebacks or short-pays |
| Purchase order that hasn't shipped yet | PO funding, from Sigma directly or through a PO funding partner |
| Progress or milestone billing | Reviewed case by case |
| Customer deposit or prepayment invoice | Reviewed case by case |
| Work in progress | Reviewed case by case |
| Invoice with a pending return, chargeback or offset | Accounted for based on your situation |
| Most of your receivables owed by one customer | No hard limit. Risk is assessed for your business as a whole |
Your Readiness Checklist.
The account documents come in once, during onboarding. Invoices come in as you ship. Your account executive confirms what each of your customers needs.
Signed factoring agreement
The standard term is 12 months. Ask about a trial period if you want to see how we work first.Business formation documents
Your articles of incorporation or organization and your EIN confirmation.Voided business check
Sets up the bank account your advances are sent to.Customer list with AP contacts
Each customer you plan to factor, with the accounts payable contact who will receive the Notice of Assignment and confirm your invoices.Invoices for shipped orders
Billed to a business customer for goods already shipped or delivered.Helpful, not required
An accounts receivable aging report, bills of lading or delivery receipts, customer purchase orders or supply agreements, recent bank statements, and your current factoring agreement if you're switching.
Types of Manufacturers
Types of Manufacturing Companies That Can Benefit
Due to tight cash flow, manufacturers often struggle to purchase raw materials. Receivable factoring provides immediate cash flow solutions by converting outstanding invoices into working capital. This allows manufacturers to cover operational costs and manage cash flow without incurring debt.
Invoice factoring is a versatile financing solution that can benefit a wide range of manufacturing companies, including:
Textile Manufacturers
Manage cash flow to purchase raw materials and meet production deadlines.
Plastics Manufacturing
Ensure continuous production without waiting for customer payments.
Chemicals Industry
Maintain inventory levels and invest in new technologies.
Food and Beverage Sector
Cover operational costs and expand product lines.
Machine Shops
Invest in new equipment and take on larger orders.
Automotive Manufacturers
Manage supply chain costs and meet payroll.
Aerospace Manufacturers
Fund large projects and maintain cash flow.
Electronics Manufacturers
Keep up with rapid technological advancements and production demands.
Any manufacturing company that experiences cash flow challenges due to long customer payment terms can benefit from invoice factoring. Invoice factoring provides immediate access to funds and helps these businesses stay competitive and responsive to market demands.
Side-by-Side
What Is the Difference Between Invoice Factoring and a Line of Credit?
Manufacturing companies have various financing options, including invoice factoring, lines of credit, and business loans. Here’s a comparison of these options:
AR Funding
Time to Funding
Based On
Balance Sheet
Covenant Risk
Commitment
If Customer Can't Pay
Cost Transparency
Invoice Factoring (Sigma)
Set up in 24–48 hours, then invoices funded the same day
Mainly your customers' creditworthiness
No debt added — a sale of receivables, not a loan
None — doesn't trigger bank covenants or require financial reporting
12-month standard term, with a trial period available on request. No usage minimums: factor only the invoices you choose.
By default you replace the invoice. Optional credit insurance covers a customer who doesn't pay.
One fee per invoice, set by how long your customer takes to pay. The schedule is in your agreement before you sign.
Bank Line of Credit
Weeks to months — underwriting, committee review, covenant setting
Your business credit score, financials, and operating history
Debt appears on balance sheet; affects debt-to-equity ratios
May include covenants on revenue, EBITDA, working capital, or debt ratios — violations can trigger early repayment
Annual renewal common. Unused portions may have fees. Commitment expected.
Interest rate disclosed upfront, but total cost depends on utilization and duration — can be difficult to model accurately
Invoice factoring is a quick and flexible financing solution that can provide manufacturing companies with the working capital they need to grow and operate smoothly. Unlike traditional loans, it doesn’t add debt to the balance sheet, and optional credit insurance can cover a customer who doesn’t pay. This makes it an ideal choice for manufacturers looking to maintain a healthy cash flow without the burden of additional debt.
Do you fund purchase orders?
Sometimes. If an order needs cash before it ships, Sigma provides advances and PO funding directly in some cases, and works with a PO funding partner in others to get you what you need. Once the order ships and you invoice it, the invoice can be factored. How PO financing and factoring work together.
Do my customers have to accept the goods before you fund?
Usually not. We ask your customer to confirm the invoice is due and payable, with no chargebacks or short-pays. Once they do, the invoice can be funded.
What happens if a customer returns goods or takes a deduction?
Returns, chargebacks, short-pays and offsets are common in manufacturing. Each one is accounted for based on your situation, so tell us about them when you submit an invoice.
Do you fund progress billing, deposits or work in progress?
Talk to us. Each is reviewed case by case, depending on your contract with the customer and where the order stands.
Can I factor invoices to one large customer?
Yes. There's no hard concentration limit. We assess risk for each business, including how much of your receivables one customer owes.
Will my customers know I'm using factoring?
Yes. Sigma sends each customer you factor a Notice of Assignment telling their accounts payable team to send payment on your invoices to Sigma. Your customer keeps receiving your invoices and pays on its usual terms; only the payment address changes.
Do you require a long-term contract?
Our standard agreement runs 12 months. If you’d rather see how we work together first, we can start with a trial period. If you expect your situation to change, for example by qualifying for a bank line of credit, raise it when we prepare your proposal. Any flexibility on term or exit is written into your agreement.
Do you pull my credit report?
No. We don’t pull owners’ personal credit reports or scores. We review your customers’ credit and payment history.
Can a new manufacturer work with Sigma?
Yes. You can sign before your first invoice. We generally look for growth to at least $50,000 a month in invoices as a sign the business is viable and stable. That’s a growth expectation, not a condition of signing.
Ready to Fund Your Next Order?
Get a proposal built around your customers and receivables, within 48 hours.
- No obligation to sign
- No hidden fees
- No personal credit checks required