Invoice Factoring for:
Manufacturing Companies
Helping business owners get the cash flow they need.
What is Factoring
Types
Benefits
How it works
Sigma Funding
Need cash now? Don’t wait for your customers to pay.
Running a manufacturing business comes with challenges—cash flow shouldn’t be one. When customers take weeks or months to pay their invoices, factoring services can help your business cover essential expenses like inventory, payroll, and equipment. Invoice financing is another option that allows you to secure funding based on outstanding invoices, addressing issues related to extended payment terms and working capital.
Invoice factoring is a simple solution that allows you to get paid upfront for your outstanding invoices. Instead of waiting for customers to pay, you sell those invoices to us, and we provide you with an immediate cash advance to keep your business moving forward.
How Invoice Factoring Benefits Manufacturers
Our invoice factoring service is specifically designed to address the cash flow challenges manufacturing businesses face through manufacturing factoring services. The manufacturing industry often faces unique challenges, such as tight margins and the need for flexibility in payment terms. Here’s how we can help you thrive:
Boost Cash Flow
Get instant access to the funds tied up in unpaid invoices. No more cash flow headaches.
Grow Your Business Faster
With cash, you can replenish inventory, invest in new equipment, and take on larger orders without hesitation.
Focus on Your Operations
Free up time and energy spent chasing late payments—our team ensures faster invoice processing and collections.
No Debt or Loans
Invoice factoring isn’t a loan, so there’s no debt to repay or interest piling up. This keeps your financial health in excellent shape.
How Invoice Factoring Works
Factoring companies purchase your unpaid invoices at a discount, immediately providing you with the cash you need. This process helps you maintain a steady cash flow without incurring traditional debt.
How Invoice Factoring Works
Invoice factoring is a financial solution that allows manufacturing companies to sell their outstanding invoices to a factoring company in exchange for immediate cash. The process typically unfolds in the following manner:
Submit Invoices
The manufacturer submits their outstanding invoices to the factoring company.
Verification and Cash Advance
The factoring company verifies the invoices and advances funds to the manufacturer, typically within a few days.
Customer Payment Collection
The factoring company collects payment from the manufacturer’s customers.
Final Payment
The manufacturer receives the remaining invoice value balance minus a small factoring fee.
This streamlined process provides manufacturing companies with immediate access to working capital, which can be used to cover operational costs, purchase raw materials, and meet payroll. Manufacturers can maintain a steady cash flow by converting outstanding invoices into cash and focusing on growing their business.
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.
Types of Manufacturing Companies That Can Benefit
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.
Automotive Manufacturers
Manage supply chain costs and meet payroll.
Plastics Manufacturing
Ensure continuous production without waiting for customer payments.
Aerospace Manufacturers
Fund large projects and maintain cash flow.
Chemicals Industry
Maintain inventory levels and invest in new technologies.
Electronics Manufacturers
Keep up with rapid technological advancements and production demands.
Food and Beverage Sector
Cover operational costs and expand product lines.
Machine Shops
Invest in new equipment and take on larger orders.
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.
Manufacturing Invoice Factoring vs. Other Funding Options
Manufacturing companies have various financing options, including invoice factoring, lines of credit, and business loans. Here’s a comparison of these options:
- Invoice Factoring: Provides immediate access to working capital by selling outstanding invoices to a factoring company. No debt is incurred, and the factoring company assumes the risk of customer payment.
Lines of Credit: Provides a revolving credit facility that allows manufacturing companies to borrow and repay funds as needed. Interest rates and fees apply, and the company must meet specific creditworthiness criteria.
Business Loans: Provides a lump sum of funds that must be repaid with interest over a set period. The company must meet specific creditworthiness criteria, and collateral may be required.
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 the risk of customer payment is transferred to the factoring company. This makes it an ideal choice for manufacturers looking to maintain a healthy cash flow without the burden of additional debt.
Why Choose Us?
Industry Expertise
We understand the unique needs of manufacturing companies and have solutions tailored just for you.
Fast Approval Process
Get access to capital in as little as 24 hours.
Transparent Fees
No hidden costs or surprises. You’ll always know exactly what to expect.
Flexible Options
Factor as many or as few invoices as you like—there’s no need to commit to long-term contracts.
Take Control of Your Cash Flow Today
Don’t let cash flow issues slow you down. Our invoice factoring service can help you stay ahead of your expenses and grow your manufacturing business confidently.
Apply Online and quickly turn your unpaid invoices into immediate working capital.
