Manufacturing Invoice Factoring and Funding
Raw materials, labor, and overhead are due now. Customer payments are not. Get funded in 24 hours and keep your production lines moving.
Why Manufacturing Companies Use Invoice Factoring
Manufacturing companies face a two-sided cash flow challenge, unlike most other industries. You pay for raw materials, labor, and overhead before a product ships. Then, once it does ship, your customers take 30, 60, or 90 days to settle their invoices. Strong sales do not prevent the problem. They often make it worse.
That gap between production costs and incoming payments limits how many orders you can fulfill, how quickly you can purchase raw materials for the next cycle, and how fast your manufacturing business can grow. Manufacturing invoice factoring converts your outstanding invoices into immediate working capital, typically within 24 hours, so your production cycle never stalls waiting on a payment.
What You Get With Meritus Capital
Up to 95% Advance
On approved manufacturing invoices, funded within 24 hours.
1 to 3% Factoring Rate
Depending on invoice volume, customer payment terms, and advance rate.
Scales With You
Your funding line grows as your invoice volume grows. No re-application needed.
What Is Manufacturing Invoice Factoring?
Manufacturing invoice factoring is the process of selling your outstanding customer invoices to a factoring company for an immediate cash advance, typically up to 95% of the invoice value. The factoring company collects from your customer when the invoice is due and releases the remaining balance to you, minus a service fee.
It is not a loan.
No debt added to your balance sheet, no collateral pledged, no monthly repayments. You convert what your customers already owe you into immediate working capital to purchase raw materials, cover labor, and fulfill your next order.
Invoice Factoring for Manufacturing Companies
Whether you produce finished goods, components, or raw materials for commercial clients, cash flow challenges in the manufacturing industry are structural. Long payment terms from customers mean your accounts receivable are consistently outpacing your available cash. Invoice factoring companies like Meritus provide the working capital you need to maintain production, fulfill orders, and grow without relying on traditional bank loans or lines of credit.
Manufacturing companies use invoice factoring services to:
How Manufacturing Invoice Factoring Works
Submit Your Staffing Invoices
After shipping goods or completing a manufacturing contract, submit your outstanding invoices to Meritus Capital. We verify the details and check your customer's creditworthiness, not yours.
Receive Your Advance
We advance up to 95% of the invoice value within 24 hours. Use the funds to purchase raw materials, pay labor, and keep your production lines moving without delay.
We Collect From Your Clients
Meritus Capital collects from your customer when the invoice is due. Once settled, we release the remaining balance to you, minus a 1-3% service fee.
Which Manufacturing Companies Qualify?
Manufacturing invoice factoring is available to businesses that:
Approval is based on your customers' creditworthiness, not your business's financial history, credit score, or years in operation. That makes manufacturing factoring accessible to growing manufacturers, medium-sized businesses scaling their order volume, and companies that do not qualify for traditional bank loans.
Invoice Factoring vs. Asset-Based Lending for Manufacturers
Invoice Factoring
Best for manufacturers with consistent invoice volume who need fast, flexible access to working capital per order cycle.
Asset-Based Lending
A revolving line of credit secured against your accounts receivable and inventory. Better suited to larger manufacturers with stable, predictable revenue who need a bigger ongoing facility.
Both are available through Meritus Capital. Learn more about asset-based lending →
Why Manufacturing Companies Choose Meritus Capital
Fast Funding
Manufacturing invoices funded within 24 hours of submission.
Dedicated Support
One account manager who understands production cycles and customer payment timelines.
Scales With You
Funding line grows as your invoice volume grows. No re-application needed.
Transaction-based
Sell invoices as needed. No debt incurred.
Frequently Asked Questions About Manufacturing Invoice Factoring
What is manufacturing invoice factoring?
Manufacturing invoice factoring is the sale of outstanding customer invoices to a factoring company for an immediate cash advance, typically up to 95% of the invoice value. The factoring company collects from your customer when the invoice is due and releases the remaining balance after settlement, minus a service fee. It is not a loan.
What are the benefits of accounts receivable factoring for manufacturers?
Manufacturing invoice factoring gives manufacturers immediate access to working capital without adding debt to the balance sheet. It allows you to purchase raw materials, cover labor, and fulfill orders without waiting for customer payments. Approval is based on your customers' creditworthiness, not yours.
How does manufacturing invoice factoring differ from a bank loan?
Invoice factoring is not a loan. You sell your outstanding invoices for an immediate cash advance, rather than borrowing against your assets or credit history. There is no monthly repayment schedule, no collateral requirement, and no impact on your credit score.
Which manufacturing companies qualify for invoice factoring?
Any manufacturing business that invoices commercial customers on net terms may qualify. Approval is based on your customers' creditworthiness. There is no minimum years-in-business requirement and no revenue threshold.
What is the difference between invoice factoring and invoice discounting for manufacturers?
With invoice factoring, the factoring company manages collections from your customers. With invoice discounting, you retain control of collections and use your invoices as collateral for a cash advance. Factoring is generally more accessible and involves less administrative overhead for smaller manufacturing businesses.
Do I have to factor every invoice?
No. You choose which invoices to submit. There is no obligation to factor every invoice you issue.
Keep Your Production Lines Moving. Get Funded Today.
Meritus Capital helps manufacturing companies convert outstanding invoices into immediate working capital so production never stalls waiting on customer payments.
Questions? Call 877-648-3709
More questions? We're here to help.
Send us a note and our team will reach out to you or simply call us at 877-648-3709