Invoice Finance for Engineering Companies

Engineering companies — mechanical, civil, structural, process, and M&E — carry significant upfront costs on every project. Specialist materials, fabrication, testing, and skilled labour are all paid before the client sees a final invoice. With engineering clients typically on 45-60 day payment terms, a single £200,000 project ties up £120,000+ in working capital for months. Invoice finance advances 85-90% of each stage or completion invoice within 24 hours.

Engineering-Specific Considerations

Stage payments and milestones. Many engineering contracts pay on completion of defined milestones rather than monthly. Factoring providers experienced with construction and engineering understand milestone billing and will advance against certified completion certificates — not just standard invoices.

Retentions. Engineering contracts often include 5-10% retention held for 6-12 months post-completion. The provider advances against the gross value minus retention. If retentions are a significant cash drag, some providers offer separate retention release facilities.

Variations and change orders. Engineering projects frequently involve scope changes. Providers need to see that variations are agreed and certified before they'll advance against them. Keep your variation documentation clean and timely.

Export engineering. If you provide engineering services or products internationally, providers like Bibby (80+ countries) and HSBC (62 countries) offer multi-currency invoice finance with overseas debtor credit checking.

Best Providers for Engineering