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Engineering & fabrication

Invoice finance for engineering & fabrication.

Materials, labour and machine time go out for weeks before you can raise an invoice, then customers pay 45 to 90 days later. A full order book can still leave you short of cash. Invoice finance releases the money as soon as each job is invoiced.

85%
Typical advance
24 hours
Time to funds
£250k
Min turnover
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UK engineering workshop with precision machining and engineers inspecting components

Why invoice finance works for engineering & fabrication.

Typical facility for a engineering & fabrication business.

Typical facility
Engineering & fabrication
Turnover£4m
Advance rate85%
Monthly drawdown£250k

A fabrication business turning over £4m and invoicing around £300k a month typically draws about £250k against those invoices within 24 hours of raising them, freeing the cash to buy materials and cover payroll for the next batch of jobs.

What lenders look for.

The specifics that make or break a facility in this sector.

Work in progress is not fundable

A half-finished job, however much steel and labour is in it, cannot be advanced against until it is invoiced. Stage or interim invoicing on longer builds lets you draw cash as the work completes rather than only at the end.

Proof of delivery and sign-off

Lenders advance against invoices they can prove are due, so delivery notes, acceptance certificates and customer sign-off matter. Clean paperwork on completion means faster funding and fewer queries.

Retention on larger contracts

Main contractors often hold back 3% to 5% retention until final acceptance. Most facilities fund the main invoice but treat retention separately, so factor it into your cash planning rather than expecting an advance against it.

Concentration on a few big customers

Depending on a handful of OEMs or main contractors can trip a concentration limit where one debtor is too large a share of the ledger. Specialist engineering lenders can stretch the limit with the right contract and payment history.

Model your facility.

Move the slider to your typical invoice value to see what would hit your account and what it would cost.

Invoice estimate

What's your invoice worth?

£50,000
£5k£500k
Released to you now£47,500
Held back until your customer pays£2,500
Time to fundsas little as 24 hours
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No obligation. Speak to your broker for tailored terms.

The right lenders for engineering & fabrication.

We benchmark your facility across a panel of specialist invoice finance and revolving credit lenders, and match you with the ones whose appetite fits engineering & fabrication. You get whole-of-market access from one conversation, at no cost to you.

Case study

Case study coming soon

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Common questions.

Not the work in progress itself, but stage or interim invoicing lets you bill agreed milestones as you reach them and draw against each invoice. That releases cash through a long build rather than only when the whole job ships.

Further reading

Invoice finance for engineering and fabrication firms

Made-to-order engineering ties up cash in materials, labour and machine time for weeks before an invoice goes out. Here is how invoice finance releases that cash once the job is delivered.

Read the full guide →

Talk to a engineering & fabrication specialist.

A free, no-obligation conversation with a broker who knows your sector. We do the legwork.

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