Want to offer more competitive payment terms to your clients, cover supplies, and grow your manufacturing business, but short on cash? As a leading provider of factoring for manufacturing companies since 1999, Viva Capital Funding can help by turning your unpaid invoices into cash.
Manufacturing Invoice Factoring Service
What is factoring for manufacturers? Factoring is like getting a cash advance on your receivables. You sell your unpaid invoices to a third party known as a factoring company. The factoring company provides you with immediate payment and then waits for payment from your client.
Benefits of Invoice Factoring for Manufacturers
Factoring accelerates your cash flow and doesn’t result in debt as loans do. Manufacturing companies often leverage it as an alternative to purchase order financing because it can be used to order supplies. However, it doesn’t have the same drawbacks. For example, PO financing often starts at $100,000 and only allows you to purchase finished goods. Factoring doesn’t usually have high minimums and you can use your factoring cash on anything, including raw unfinished goods. Plus, factoring frees you from tedious back-office tasks like collections, so you can focus on the core areas of your business. Factoring is good for your clients too. You can give them more breathing room on their payments, which helps build strong, long-lasting relationships.
In the manufacturing industry, managing cash flow is crucial to growing your business. Manufacturing factoring provides a powerful solution by turning your outstanding invoices into immediate cash. Unlike traditional bank loans or a line of credit, invoice factoring for manufacturing companies gives you access to working capital without increasing debt. This financing option allows manufacturers to use invoice factoring to cover operational costs, purchase raw materials, and meet payroll without the lengthy application process associated with banks.
With factoring services, manufacturing companies can receive up to 100% of the invoice value in just a few business days, minus a small factoring fee. By utilizing accounts receivable factoring, manufacturers can offer flexible payment terms to their clients while securing funds to fulfill larger orders. Whether you’re waiting 30, 60, or even 90 days for payment, factoring companies like Viva Capital Funding provide the cash advance you need to keep operations running smoothly. The result is improved liquidity, freeing up time and resources to focus on expanding your manufacturing business.
Viva’s Four-Step Manufacturing Process
From start to finish, Viva makes invoice factoring for manufacturers easy.
Get approved for factoring.
Fulfill the order and invoice your client.
Submit the invoice to Viva and get paid as soon as the same day.
Move forward. Viva waits for payment from your client, collects, and delights them with great service.
Testimonial
I was a brand new business owner and I was new to doing payroll for my healthcare staffing company. The Viva Capital staff were very informative and they checked in with me every step of the way to make sure I was on track with having funding in place before my first payroll. The ability to grow and bring on more employees without having to worry about how I would find the working capital to grow my business is the most obvious advantage I felt Viva Capital has offered me.
Alisa A. | Staffing | North Carolina
Advantages of Viva’s Manufacturing Factoring Program
Low Rates
Qualified manufacturing companies pay rates as low as 0.25 percent.
High Advances
You can receive up to 100 percent of the invoice’s value upfront, minus a nominal factoring fee.
Transparency
We’ll provide you with a clear estimate ahead of time, so you always know what to expect and can make informed decisions.
Fast & Easy Approval
Qualifying for factoring is largely based on the strength of your clients, not your credit score. Most small businesses and startups can be approved in a matter of days.
Quick Funding
Get paid as soon as the day you submit your invoice.
24/7 Account Access
Find out what’s happening with your clients and their payments whenever you like via your online portal.
Personalized Service
You’ll have a dedicated account manager who understands supply chain financing as your single point of contact. They’ll walk you through the process and answer all your questions.
Flexibility
Choose which invoices to factor and when to factor them.
Tailored Solutions
Our goal is to help your manufacturing business thrive, even if factoring isn’t the right fit. We’ll help you find the right funding for your needs and offer a variety of solutions ranging from equipment financing to asset-based lending and other short-term loan options.
Viva in Action: DMI Industries Supplies
Learn how DMI Industries Supplies grew and continued its global expansion plans with the help of Viva Capital Funding.
With your cash flow concerns addressed, you’re free to focus on your business.
- Order Supplies
- Take on Larger Orders
- Accept More Orders
- Cover Business Overhead
- Pay Subcontractors or Cover Payroll
- Purchase Equipment
- And More
Learn More About Invoice Factoring for Manufacturing Companies
If waiting up to 120 days for client payments is hurting your business’s growth or making it difficult to operate, factoring can help. Contact Viva to learn more.
Manufacturing Factoring FAQs
What is manufacturing factoring?
Manufacturing factoring is a funding solution where manufacturers sell their unpaid invoices to a factoring company in exchange for immediate cash. This helps manufacturers maintain smooth operations and eliminates the waits for customer payments.
How does factoring help manufacturing companies?
Factoring helps manufacturing companies by improving cash flow, allowing them to pay suppliers, cover operational costs, and fulfill more orders. It bridges the gap between invoicing and receiving payment, providing liquidity without taking on debt.
What types of manufacturers qualify for factoring?
Manufacturers of all sizes and industries can qualify for factoring, including those producing consumer goods, industrial equipment, and raw materials. Any manufacturer with outstanding invoices and long payment cycles can benefit from factoring.
How quickly can manufacturers receive funding through factoring?
It typically takes manufacturers a few days to receive the initial approval for factoring. Payments then begin to arrive around two business days after invoices are submitted to the factoring company. However, Viva Capital provides expedited service, with approvals in as little as eight hours and same-day payments available.
Is invoice factoring the same as a loan for manufacturers?
No, invoice factoring is not a loan. Instead of borrowing money, manufacturers sell their unpaid invoices to a factoring company for immediate cash. There’s no debt to repay, and the factoring company collects the payments directly from the customers.
What is the difference between factoring and purchase order financing?
Factoring involves selling unpaid invoices for cash, while purchase order financing provides funding based on a confirmed purchase order to cover production costs. Both improve cash flow, but they serve different stages of the sales process.
Can small manufacturing businesses qualify for factoring?
Yes, small manufacturing businesses can qualify for factoring as long as they have outstanding invoices owed by creditworthy clients. Factoring is often used by small manufacturers to bridge cash flow gaps and maintain operations while waiting for payments.
