Manufacturing and Distribution
Manufacturers and distributors operate in a constant cycle of spending money before they make it. Raw materials must be purchased, production lines must be staffed and maintained, and finished goods must be warehoused and shipped — all before a customer ever receives an invoice. And once that invoice is sent, you're typically waiting 30 to 60 days for payment under standard net terms.
For companies operating on thin margins with high input costs, that gap between outlay and collection creates persistent cash flow pressure. A large new order — which should be a sign of success — can actually create a short-term crisis if you don't have the working capital to fund production. Factoring provides a way to convert completed sales into immediate capital so your business can keep producing, shipping, and growing without interruption.
How Factoring Works for Manufacturers and Distributors
Once you ship product and generate an invoice to your customer, you submit that invoice to Hexagon along with supporting documentation such as a bill of lading, packing slip, purchase order, or signed delivery receipt. We verify the receivable with your customer, then advance 80–90% of the invoice value directly to your account — typically within 24 to 48 hours.
When your customer pays the invoice in full, we remit the remaining balance to you minus a small factoring fee. The process repeats with each new shipment and invoice, creating a continuous funding cycle that keeps pace with your production and delivery schedule.
For manufacturers and distributors with recurring customers and consistent order patterns, factoring becomes a predictable and reliable component of your cash flow management. You know what's shipping, you know what's being invoiced, and you know when the capital will be available — allowing you to plan purchasing, production, and staffing with confidence.
Common Cash Flow Challenges in Manufacturing and Distribution
Beyond the standard gap between production costs and customer payment, manufacturers and distributors face several cash flow dynamics that make factoring particularly relevant.
Seasonal demand fluctuations can require significant upfront investment in raw materials, labor, and inventory months before the corresponding revenue arrives. A manufacturer preparing for a peak season must fund production now based on orders that won't be invoiced — and won't be paid — for weeks or months. Factoring the invoices generated during the ramp-up accelerates the cash cycle and reduces the strain of seasonal buildup.
Customer concentration is another common challenge. Many manufacturers and distributors rely on a small number of large accounts for the majority of their revenue. While these relationships provide stability, they also create risk — a single customer paying late or requesting extended terms can disrupt your entire cash position. Factoring allows you to convert those large, slow-paying invoices into immediate capital rather than waiting on one customer's accounts payable department to process your payment.
Supply chain commitments add further pressure. Your suppliers may require payment on shorter terms — or even upfront — while your customers expect net-30 or net-60 terms from you. Factoring bridges that mismatch by putting cash in your hands shortly after you ship, allowing you to pay your own suppliers on time, maintain favorable purchasing terms, and avoid costly supply chain disruptions.
Why Oklahoma Manufacturers and Distributors Work With Hexagon
Manufacturing and distribution businesses require a factor who understands the relationship between production cycles, inventory management, and receivables. A delayed shipment, a partial delivery, or a customer dispute over product quality can all affect the collectibility of an invoice — and a factor who doesn't understand these dynamics may either decline the receivable or create unnecessary friction in your operations.
Hexagon takes the time to understand how your business works — from raw material procurement through production, shipment, and invoicing. We learn your customer base, your typical order patterns, and the terms you extend so that we can evaluate receivables with context rather than just numbers on a page.
Whether you're a small specialty manufacturer fulfilling regional orders or a growing distributor expanding your customer base across Oklahoma, Hexagon provides working capital that scales with your sales and adapts to the realities of how your business operates. And because we're local, we're available to visit your facility, review your operations firsthand, and build a relationship grounded in genuine understanding of your business.