TL;DR: Manufacturing businesses invest heavily in raw materials, labour, and production before invoicing customers on extended terms. Invoice finance converts your outstanding invoices into immediate working capital so you can fund the next production run without waiting for payment on the last one.
The Cash Flow Challenge in Manufacturing
Manufacturers face a long cash conversion cycle. Raw materials and components are purchased upfront, labour is paid weekly, and production takes time before goods are shipped and invoiced. Customers then pay on 30–90 day terms. This can tie up significant working capital, especially for growing businesses taking on larger orders.
How Invoice Finance Works for Manufacturers
With Fundtap, you fund invoices as soon as they are issued. Select individual invoices from your accounting software and receive an advance within hours. The advance is settled when your customer pays.
- Fund raw material purchases from customer invoice advances
- Maintain production schedules without cash flow interruptions
- Accept larger orders with confidence
- No factory or equipment security required
Why Manufacturers Choose Fundtap
- Funded within hours
- No lock-in contracts or minimum volumes
- Single fee from 4% per invoice
- Confidential — customers never notified
- Integrates with Xero, MYOB, and QuickBooks
- Available in Australia and New Zealand
Yes. Manufacturing businesses commonly use invoice finance to bridge the gap between production costs and customer payment. It is particularly useful for businesses with long production cycles and extended payment terms.
Yes. Funding scales with your invoice volume. As you take on larger orders and issue larger invoices, more funding becomes available.
No. With Fundtap, your invoices are the security. No property, equipment, or other asset pledges are required.
Fundtap currently supports invoices issued through Xero, MYOB, or QuickBooks to B2B customers. Contact Fundtap to discuss your specific requirements.
Trade finance helps fund the purchase of goods before you have sold them. Invoice finance helps you access cash after you have sold goods and invoiced the customer. They address different parts of the cash conversion cycle and can be used together.