Manufacturing carries one of the longest cash cycles of any sector we fund. Materials are bought and often paid for up front, production consumes labour and energy for weeks, and the customer pays on their own terms after delivery. A full order book can leave a bank balance looking worse, not better.
Why a bigger order can make cash tighter
Take a firm that wins a £120,000 order requiring £45,000 of materials up front. The materials are paid for in week one, production runs for six weeks, and the invoice settles 60 days after delivery. That is roughly four months between the money leaving and the money returning — on a job that is profitable on paper throughout.
Energy costs sharpen it further: they are consumed and billed monthly regardless of when the customer pays.
What operators in this sector actually fund
- Raw materials and components for an order already won
- Tooling, jigs or fixtures required for a new contract
- Bridging the gap between delivery and a 60- or 90-day settlement
- Machine repair or replacement when a breakdown stops a line
- Skilled labour and overtime through a production ramp
A £45,000 advance, both terms
An engineering firm needs £45,000 for materials on a contract that will not be invoiced for six weeks. On our published rates:
| £45,000 advance | 20 weeks | 26 weeks |
|---|---|---|
| Approved advance | £45,000 | £45,000 |
| Arrangement fee (5%, deducted at funding) | −£2,250 | −£2,250 |
| Paid to your account | £42,750 | £42,750 |
| Factor rate | 1.48 | 1.55 |
| Total repayable | £66,600 | £69,750 |
| Weekly payment | £3,330 | £2,683 |
| Total cost on cash received | £23,850 | £27,000 |
Illustrative, using our published factor rates. Your own rate is set by underwriting and is stated in pounds on your agreement before you sign it.
Whether you qualify
Four minimums. Meeting them is not the same as being approved — it is the point at which applying is worth your time:
- UK limited company or LLP — incorporated and registered at Companies House.
- 6+ months trading — six months is the least we can work with.
- £10,000+ monthly turnover — consistent, and visible in the business bank account.
- Active UK business current account — this is where the underwriting actually happens.
If the funding is for a specific machine rather than general working capital, asset finance secured on that machine is usually cheaper. Tell us what the money is for — where another product fits better, we will say so.
Why the decision being ours matters here
Manufacturing files get read badly by automated scoring: high turnover, thin margins, heavy outflows in the weeks before revenue arrives. Because Solvo lends its own money, the decision comes from people who can see that the pattern is production, not distress.
Solvo funds £10,000 to £75,000 from its own book, usually within 24–72 hours of final documents. One decision, made by us — your file is not shopped around a panel. Above £75,000 we arrange the facility with a lending partner.
About 3 minutes. No obligation. Limited companies and LLPs only.
Frequently asked questions
Can we borrow against an order we have already won?
The advance is priced against your overall trading and account behaviour rather than secured on a single contract, which is why the decision can be made quickly. Tell us about the order — it is useful context for underwriting even though it is not the security.
Our margins are thin on high turnover. Is that a problem?
No. That is the normal shape in manufacturing. Underwriting looks at turnover consistency and how the business current account is managed, not at whether your margin resembles a software company.
We are profitable but always short of cash. Why?
Because profit sits in delivered work and cash sits in the future. The gap between paying for materials and being paid by the customer is exactly what short-term working capital exists to bridge.
How fast can we have the money?
Usually 24–72 hours after final documents. Have three to six months of business bank statements ready before you apply and the file moves quickly.
Illustrative only. Solvo Funding is a UK direct lender for limited companies and LLPs and also acts as an intermediary for facilities above £75,000. Advances are subject to underwriting; meeting the minimum criteria is not the same as being approved and we cannot guarantee an offer. Finance for limited companies and LLPs is generally not regulated by the Financial Conduct Authority.