2 min read
Why manufacturing businesses need finance
From buying raw materials to shipping and being paid, a manufacturer's cash is locked in the process for weeks or months. Larger orders stretch it further, so growth can tighten cash even as it lifts profit.
What tends to fit
A working-capital facility funds materials and production, repaid as finished goods are sold and invoices settle. Invoice finance can release value once goods are invoiced.
What it means for you
See the sector view for manufacturing. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Why does manufacturing tie up so much cash?
Because money goes out on materials and production long before the finished goods are sold and paid for. The longer the process, the more cash is locked in work in progress.
What finance suits a manufacturer?
Working capital to fund materials and production, and invoice finance to release value once goods are invoiced. Both fund the cycle rather than a loss.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.