Quick answer — can partners finance 60–90 day manufacturing invoices?

Short answer: Yes. Many lenders and brokers we work with provide invoice discounting and factoring that accommodate 60–90 day payment terms. They will consider the creditworthiness of your buyers, the clarity of your invoices and contracts, concentration of sales to a small number of customers, and your company’s trading history.

Important caveat: approval and pricing are not guaranteed. The structure (recourse vs non‑recourse), advance rate and fees will vary with buyer risk and sector. If you want to explore options quickly, start a Free Eligibility Check and we’ll match you to partners who specialise in manufacturing receivables.

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How invoice finance works for manufacturers

Invoice finance converts unpaid invoices into immediate cash so you can pay suppliers, run production and grow without waiting 60–90 days for customer payment.

Invoice factoring vs invoice discounting

Factoring: the funder (factor) buys or advances against your invoices and usually handles collections. This can be helpful if you want outsourced receivables management.

Invoice discounting: a confidential facility where you retain collections and the lender advances against invoices. Discounting can be cheaper but requires stronger internal credit control and lender confidence.

How 60–90 day maturity changes the facility

Longer debtor days typically reduce advance rates and increase reserve requirements. Lenders price for time on risk: expect a lower initial advance (eg 70–85%) and a higher reserve held back until customers pay. Non‑recourse options (covering buyer default) are possible but more expensive for long-term invoices.

Typical timeline & cashflow example

Example: Invoice £100,000 → Advance 80% (£80,000) within 24–72 hours → Reserve 15% (£15,000) held → Fees/interest deducted on collection at 90 days → Remaining reserve (less fees) released after payment. This turns 90 days of receivables into near-immediate working capital.

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What lenders and brokers check when buyer payment terms are 60–90 days

When payment terms are long, underwriters focus on buyer risk and documentation. Below is a quick checklist you can use to prepare:

• Buyer credit profile: strong, low-risk buyers make 60–90 day finance easier and cheaper.
• Invoice and contract clarity: clean invoices, clear delivery notes and signed contracts reduce underwriting friction.
• Concentration risk: if one buyer accounts for >25–30% of sales, options may be limited or require extra security.
• Trading history and turnover: established manufacturers with 12+ months of trading and regular turnover are preferred.
• Export vs domestic: export invoices add complexity (FX, jurisdiction, collection) — specialist programmes exist but criteria differ.
• Ageing and disputes: a low level of disputed or overdue invoices is important; lenders will ask about disputes handling.

Prepare an aged debtor report, sample invoices and recent accounts before applying — this will speed matching and improve offers.

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Types of invoice finance suitable for longer debtor terms

Invoice discounting (confidential)

Confidential discounting lets you keep customer relationships and collections in-house. Best for established manufacturers with strong credit control and multiple buyers.

Factoring (full-service)

Factoring packages in collections and credit management — useful if you want specialist support chasing long-term receivables or if internal resource is limited.

Selective invoice finance

Finance individual invoices or batches rather than the whole book. Good for manufacturers with mixed buyer quality or variable orders.

Export invoice finance & supply chain finance

Export-focused facilities and buyer-led supply chain finance are available for cross‑border trade and larger corporate buyers — these require specialist partners.

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Typical pricing, advance rates & hidden costs for 60–90 day invoices

Costs differ widely by provider, buyer risk and whether the facility is recourse or non‑recourse. Typical elements include:

• Advance rate: 70–85% (lower for higher-risk buyers).
• Reserve: 10–25% held back until payment.
• Discount/interest: charged monthly on the advanced amount (expressed as a % per month or annual equivalent).
• Service/admin fees: fixed monthly or per-invoice charges.
• Bad debt protection: insurance premium where non‑recourse is offered.

Illustrative example (for guidance only): Invoice £100,000 — Advance 80% (£80,000) — Reserve 15% (£15,000) — Monthly funding cost 1.2% (charged on advanced amount) — Net cash to business ≈ £80,000 less fees until collection.

Tips to reduce costs: diversify buyers, improve invoice documentation, negotiate scale-based fee structures and compare multiple partner offers.

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Real example — anonymised manufacturing case study

A Midlands parts manufacturer with £3.5m annual turnover was supplying a national OEM on 90‑day terms. The manufacturer faced seasonal stock purchases and labour costs that clashed with collections.

Solution: selective factoring for the OEM invoices. Outcome: immediate advance of 78% on invoiced value; first advance paid within 48 hours; working capital increased by £250k; overdraft usage eliminated; ability to take two larger orders offered by the OEM. The facility cost was offset by improved purchasing discounts and stable production scheduling.

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When invoice finance may not be suitable — and alternatives

Invoice finance is less likely to be appropriate if:

• Your buyers have poor or unknown credit and are regularly disputing invoices.
• You have a very small number of buyers (high concentration) with weak payment records.
• Your business is brand new with no trading history or demonstrable turnover.

Alternatives to consider:

• Asset finance (machinery) to free up cash against equipment.
• Short-term business loans or invoice spot finance for one-off gaps.
• Supply chain finance or buyer-led programmes if corporate buyers offer them.
• Specialist lenders or bridging facilities for complex situations.

Our introducer partners will recommend the most appropriate route if invoice finance isn’t the best fit.

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How UK Business Loans matches manufacturing clients to the right partners

1. Quick enquiry: complete a short form with company details and typical debtor days (under 2 minutes).
2. Targeted match: we introduce you to lenders and brokers from our panel who have experience with long debtor terms and manufacturing receivables.
3. Compare offers: receive contact from partners, review proposals, and decide — no obligation.

Our service is an introduction only — we do not lend or give regulated financial advice. Submitting an enquiry helps partners respond with the right structure and indicative pricing faster.

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Related resources: How invoice finance works · How we match lenders · FAQs · Contact us.

For a broader view of sector-specific options see our page on manufacturing business loans.

FAQs — common questions about invoice finance for 60–90 day terms

Will applying affect our credit score?

Initial enquiries via UK Business Loans do not affect your credit file. Lenders or brokers may run checks later if you progress with a specific offer.

Can overseas invoices be financed?

Yes — export invoice finance exists, but underwriting depends on buyer jurisdiction, documentation, and insurer/lender appetite. Specialist partners handle export risk and FX considerations.

What happens if an invoice is disputed?

Factoring providers commonly manage disputes and collections; with confidential discounting you keep responsibility. Facility terms will explain dispute handling and holdbacks.

How quickly can I access funds?

Some partners can advance funds within 24–72 hours after verification. The exact timeline depends on buyer checks and document completeness.

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Final summary — next steps

Many lenders and brokers can offer invoice finance for manufacturers with 60–90 day payment terms, but success rests on buyer credit, documentation and diversification. If you want tailored options and quick comparisons, complete our Free Eligibility Check and we’ll match you with partners experienced in manufacturing receivables.

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UK Business Loans is an introducer — we do not lend or provide regulated financial advice. We connect manufacturers to lenders and brokers able to discuss and deliver invoice finance and other business finance solutions. Terms, conditions and eligibility apply.