Manufacturing Financing - Invoice Factoring

Manufacturers can expedite cash flow by unlocking the working capital in unpaid customer invoices when they factor them with DB Squared. Factoring rates as low as 1% and high advance rates help you grow your manufacturing business faster.

Manufacturing Finance Solutions that Expedite Cash Flow

Adequate cash flow is critical to every type of business, including U.S. manufacturers who sell to distributors or directly to retailers and invoice buyers for payment.

Many of a manufacturer’s operational costs, raw goods, and services must be purchased with cash up front, These same manufacturers often then find themselves waiting for distributors or retailers to pay for weeks – months – or even longer. Waiting for their customers to pay can result in cash flow challenges that limit or stall their growth.

Using invoice factoring as a manufacturing finance tool fills the gap!

Here’s how invoice factoring speeds up manufacturer cash flow:

  • A manufacturer generates an invoice and factors it with DB Squared. For a small fee (called a factoring fee) we advance the manufacturer up to 98% of the invoice amount on the same day, holding the rest in reserve.
  • The remaining amount is held as a reserve against the invoice. As each of the factored invoices are paid in full, the reserve amounts are also released back to the manufacturer.

Factoring invoices provides manufacturers with immediate access to the money that is tied up in unpaid customer invoices. By eliminating concerns about slow paying customers, they can also turn this to their advantage by offering buyers extended payment terms as a competitive advantage.

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How Invoice Factoring Works to Finance Manufacturing Operations

Supply chain factoring companies like DB Squared factor unpaid customer invoices for a small fee – called a factoring fee – and give manufacturers a same-day advance of up to 98% of the invoice amount. This puts working capital into the manufacturers hands right away. Instead of worrying about when checks will come in or chasing down customer payments, manufacturers can focus on growing more quickly.

Manufacturers that factor with us completely eliminate the time spent waiting for their customers to pay. This enables immediate reinvestment into operations and inventories so they can grow their business by filling new orders right away, taking on larger orders or expanding operations.

Factoring invoices can also help manufacturers attract more customers by enabling them to offer great payment terms. The expedited cash flow gained through this form of manufacturer financing can also be used to more effectively manage operational expenses, expansion, capital expenditures or for many other reasons.

Use our manufacturer factoring calculator to discover the amount of cash flow that you could expedite if you factored invoices instead of waiting weeks – or longer – for customers to pay.

Supply Chain Finance Scenario:
Manufacturer Financing through Invoice Factoring

In the following manufacturing finance scenario you’ll see how invoice factoring helps a manufacturer who wants to grow their business.

The Wonderful Widget manufacturing company wants to expand from regional to national distribution. To do this, they need to produce a significantly higher number of wonderful widgets and establish a nation-wide network of distributors for their widgets – all in a short period of time.

To help them attract the best distributors in various regions, they want to extend favorable payment terms so that distributors can stock more of their wonderful widgets.

They can only accomplish their goal if they can get access to the money currently owed them by their current customers. So they factor these unpaid invoices with DB Squared, and gain access to working capital immediately.

Capital in hand, the Wonderful Widget Manufacturing Company can obtain the raw materials needed to produce the inventory for supplying both new distributors and current customers with all the wonderful widgets they ordered.

Contact us to request more information about manufacturer finance solutions by calling 866-855-3640 or completing the quick quote form shown below. Get answers to your questions in 24-48 hours, or even faster. When approved to factor invoices, get your first funding and start unlocking working capital in as little as 3-5 business days.

Manufacturer Finance: Invoice Factoring Calculator

Find out more about manufacturer invoice factoring by using our opportunity cost calculator to estimate the amount of working capital you could unlock in order to expedite cash flow and grow more quickly. Complete the quick quote form below or call us at 866-855-3640 for a free, no-obligation factoring proposal.

Opportunity Cost Calculator

Use our invoice factoring calculator to determine whether factoring receivables could expedite cash flow in your business.

  • Your Current Total Accounts Receivable
    $1,000 $5,000,000+
    $0
  • Your Average Customer Invoice Amount
    $0 $250,000+
    $0
  • Advance Rate for Factored Invoices (Advances usually range from 85-98%)
    85% 98%
    0%
  • Factoring Fee (Factoring fee usually ranges from 1-5%)
    1% 5%
    0.50%

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  • Expedite working capital tied up in customer invoices, without waiting for customers to pay Working Capital Unlocked $0
  • Average Factoring Fee $0

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Request more information about invoice factoring for manufacturers:

Go from approval to funding in 24-48 hours, or even faster.

Why Choose Us for Manufacturer Invoice Factoring?

Even if you are already using invoice factoring as a manufacturing finance tool, we encourage you to apply for a free, no-obligation factoring proposal so that you can make sure you have the best factoring agreement in place for your organization. When you factor invoices with DB Squared, you can expect:

  • Low factoring fees – ranging from 1-5%
  • High advances on factored invoices – up to 98%
  • Free same day funding
  • Free credit checks on your customers
  • No long term contracts or hidden penalties
  • No hidden fees, and no application or due diligence fees
  • No monthly minimums – factor only when you choose to
  • Non-recourse supply chain factoring reduces financial risk from bad debt
  • You choose whether to invoice your customers or turn the task over to us

Plus, you will receive prompt, professional customer service with a dedicated account manager, which means you will be working with someone that understands and appreciates the unique needs of your business.