Manufacturing Factoring: Solving Cash Flow Issues in Supply Chains
Manufacturers pay for raw materials and labor long before customers pay their invoices. Factoring releases cash from those invoices so…
Accept More POs With Manufacturing Invoice Factoring.
Invoice factoring for Manufacturing Companies that can’t afford to wait 30–60 days for customer payments, when you need to buy supplies and equipment today.
- 600+businesses funded
- $900M+invoices purchased
- 97%fund again
Estimate your advance
- Advance, funded the same day you submit
- $212,500
- Reserve, paid to you when your customer pays
- $37,500
- Est. fee, taken from the reserve
- −$5,875
- Total you receive
- $244,125
Estimate only. Advances run 70–97% by industry; your exact rate and fee are in your written proposal. No credit check to start.
Our Approach
How Sigma Works for Manufacturers
Boost Cash Flow
Get instant access to the funds tied up in unpaid invoices. No more cash flow headaches.
Grow Your Business Faster
With cash, you can replenish inventory, invest in new equipment, and take on larger orders without hesitation.
Focus on Your Operations
Free up time and energy spent chasing late payments—our team ensures faster invoice processing and collections.
No Debt or Loans
Invoice factoring isn’t a loan, so there’s no debt to repay or interest piling up. This keeps your financial health in excellent shape.
A business like yours
New to factoring, and growing because of it
“We were new to factoring when we started with Sigma. Looking back, I don't know how we survived, let alone grew, without it. It's made that much of a difference.”
Linda · Distribution · Georgia- Started as
- New to factoring
- Industry
- Distribution
- Location
- Georgia
Distribution company in Georgia, first-time factoring client. Individual results vary.
Types of Manufacturers
Types of Manufacturing Companies That Can Benefit
Due to tight cash flow, manufacturers often struggle to purchase raw materials. Receivable factoring provides immediate cash flow solutions by converting outstanding invoices into working capital. This allows manufacturers to cover operational costs and manage cash flow without incurring debt.
Invoice factoring is a versatile financing solution that can benefit a wide range of manufacturing companies, including:
Textile Manufacturers
Manage cash flow to purchase raw materials and meet production deadlines.
Plastics Manufacturing
Ensure continuous production without waiting for customer payments.
Chemicals Industry
Maintain inventory levels and invest in new technologies.
Food and Beverage Sector
Cover operational costs and expand product lines.
Machine Shops
Invest in new equipment and take on larger orders.
Automotive Manufacturers
Manage supply chain costs and meet payroll.
Aerospace Manufacturers
Fund large projects and maintain cash flow.
Electronics Manufacturers
Keep up with rapid technological advancements and production demands.
Any manufacturing company that experiences cash flow challenges due to long customer payment terms can benefit from invoice factoring. Invoice factoring provides immediate access to funds and helps these businesses stay competitive and responsive to market demands.
Side-by-Side
What Is the Difference Between Invoice Factoring and a Line of Credit?
Manufacturing companies have various financing options, including invoice factoring, lines of credit, and business loans. Here’s a comparison of these options:
AR Funding
Time to Funding
Based On
Balance Sheet
Covenant Risk
Commitment
If Customer Can't Pay
Cost Transparency
Invoice Factoring (Sigma)
Set up in 24–48 hours, then invoices funded the same day
Your customers' creditworthiness — not yours
No debt added — a sale of receivables, not a loan
None — doesn't trigger bank covenants or require financial reporting
Month-to-month. Use when you need it. No minimums.
By default you replace the invoice. Optional credit insurance covers a customer who doesn't pay.
One flat fee per invoice — shown in full before you sign. Based on your customer's credit and industry.
Bank Line of Credit
Weeks to months — underwriting, committee review, covenant setting
Your business credit score, financials, and operating history
Debt appears on balance sheet; affects debt-to-equity ratios
May include covenants on revenue, EBITDA, working capital, or debt ratios — violations can trigger early repayment
Annual renewal common. Unused portions may have fees. Commitment expected.
Interest rate disclosed upfront, but total cost depends on utilization and duration — can be difficult to model accurately
Invoice factoring is a quick and flexible financing solution that can provide manufacturing companies with the working capital they need to grow and operate smoothly. Unlike traditional loans, it doesn’t add debt to the balance sheet, and optional credit insurance can cover a customer who doesn’t pay. This makes it an ideal choice for manufacturers looking to maintain a healthy cash flow without the burden of additional debt.
What's the difference between factoring and a bank loan?
Factoring is a sale of receivables — not debt. It doesn’t appear on your balance sheet, doesn’t trigger bank covenants, and is underwritten against your customers’ credit rather than yours. There’s no repayment schedule because repayment comes from your customer’s payment of the invoice.
Will my customers know I'm using factoring?
Yes. A Notice of Assignment is sent to your customers directing payment to Sigma. This is standard practice in B2B finance — your customers have almost certainly seen it before. Our team contacts them professionally on your behalf.
What's the fee structure?
One flat discount fee per invoice. Based on your industry’s risk profile, your customer’s creditworthiness, and your invoice terms. No wire fees, no monthly minimums, no setup fees, no termination penalties. Your exact fee is shown in full before you sign anything. Use the estimator above for a working figure.
Is there a minimum volume or long-term contract?
No minimum invoice size. No minimum monthly volume. Our standard agreement is month-to-month with 30 days notice prior to renewal. No annual commitment, no termination penalty. We can also build custom exit provisions into your agreement.
Does factoring affect my existing bank line or covenants?
Factoring is a sale of receivables — not a loan. It doesn’t appear on your balance sheet as debt. We file a UCC-1 against your receivables (standard in factoring), which is structured to coexist with most existing bank facilities. We review your agreements before onboarding.
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