Quick answer
Manufacturing companies typically wait 45–90 days from OEMs and distributors. AR financing unlocks cash tied up in shipped orders, while PO financing can fund materials for large new contracts.
Key takeaways
- Raw materials, labor and machine time are paid upfront while OEM customers stretch terms to 60 or 90 days.
- Common uses: raw materials, production payroll, equipment uptime, large oem contracts.
- Funding usually arrives within 24–48 hours after setup.
Why is cash flow so tight in manufacturing?
Raw materials, labor and machine time are paid upfront while OEM customers stretch terms to 60 or 90 days.
Payment terms of 45–90 days from OEMs and distributors are the norm, which means profitable companies can still run out of cash while waiting.
The fix: finance your receivables
AR financing unlocks cash tied up in shipped orders, while PO financing can fund materials for large new contracts.
Because approval depends on your customers' credit, growing and younger manufacturing businesses can qualify.
What the funds are used for
Manufacturing clients most often use funding for raw materials, production payroll, equipment uptime, large oem contracts.
Practical cash-flow habits
Invoice the same day work is completed, confirm the customer's approval process upfront, track days-sales-outstanding weekly and keep documentation (POs, delivery proof, timesheets) attached to every invoice — funders pay faster when files are complete.
Get a funding quote in 24 hours
Talk to a National Invoice Factoring specialist at (929) 658-8087 or apply online — no obligation.
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Written and reviewed by the National Invoice Factoring funding team — specialists in receivables and trade finance since 2009.
