Is Your Manufacturing Business Struggling with Cash Flow?
Manufacturers often extend payment terms to their customers. They complete production, deliver their goods, then invoice the customer and wait to be paid. In the meantime, the manufacturer has its own costs to cover including making payroll, paying vendors, and paying for lease or mortgage. This creates a cash flow problem. However, there is a simple solution. Many small and medium manufacturers utilize invoice factoring to improve their cash flow.
How Invoice Factoring Works for Manufacturers
Invoice Factoring is a quick, alternative to bank loans. Qualifying is much more simple as well. The main requirement is that you have accounts receivable, meaning you invoice your customers and wait a period of time for them to pay, generally 30 – 60 days. The second requirement is that you are selling to credit worthy customers. The factoring company will check the credit history of your customers for approval. Once you are approved, the process is simple:
- Complete production
- Deliver to customer and create invoice
- Send invoice to factoring company
- Factor will verify invoice and advance funds
- The factor collects payment from the customer according to payment terms
Riviera Finance works with manufacturers in all sectors including:
- Apparel & Screen Printing
- CNC Machining
- Food & Beverage Co-packing
- Supplement Manufacturing
Top Benefits of Factoring Invoices with Riviera Finance
Recent Funding for a Manufacturing Company
|Type Of Business:||CNC Machining|
|This CNC Machine Shop has customers in a broad range of industries including automotive, semi-conductor, and medical. They needed a quick cash flow solution in order to keep production at full capacity. Riviera stepped in and provided working capital in a matter of days so that this thriving company could continue to grow without poor cash flow holding them back.|
Manufacturing Industry Outlook
The Institute for Supply Management has projected the manufacturing industry to continue to grow. With international supply chains being strained, there continue to be a growing need for domestic production. The industry experts at Fast Radius have highlighted six key manufacturing trends: shorter supply chains, shrinking new product development cycles, growth of sustainable solutions, expanding applications for additive manufacturing, niche product growth, and continuation of talent shortage.
In order to take advantage of the growing opportunities in manufacturing, one thing is for certain, manufacturers will need working capital. Riviera Finance has been working with manufacturers like you for more than 50 years. Give us a call to see what we can do for you.