Cash is tied up in fabric and overseas production months before goods ship, while retailers pay on 30 to 90 day terms. Invoice finance releases the money the day you deliver.
The specifics that make or break a facility in this sector.
Sales bunch around collection launches, so drawdown spikes then falls back. A good lender sizes the facility to the peak rather than the average, so you are not squeezed at the busiest point.
Unsold stock, returns and markdowns reduce the value of invoices already funded. Lenders set a dilution allowance and hold a modest reserve to cover credit notes.
Large retailers deduct for late delivery, short shipments or quality faults. These deductions hit the ledger, so pick a lender that understands retail terms and prices for them.
Overseas manufacturing means paying mills and factories in dollars or euros while invoicing in sterling. A facility with a trade finance overlay funds the order upfront and manages the currency legs.
Move the slider to your typical invoice value to see what would hit your account and what it would cost.
We benchmark your facility across a panel of specialist invoice finance and revolving credit lenders, and match you with the ones whose appetite fits textile & garment manufacturing. You get whole-of-market access from one conversation, at no cost to you.
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Yes. Invoice finance advances against the sales invoice at delivery, and a trade finance line sits alongside it to pay mills and factories upfront, so both ends of the cycle are covered.
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