IGF for Engineering Invoice Finance
IGF Invoice Finance is one of the longest-standing UK engineering and metals invoice finance specialists, with no minimum turnover (unusual in the UK market) and underwriting familiar with long manufacturing cycles, milestone billing, and tier-2 automotive / aerospace supply chain mechanics. For UK engineering SMBs that fall below the £50k floors at the larger specialists, or that need sector-specific attention on concentrated customer exposure, IGF is one of the strongest options on the panel.
Quick Reference
Direct Answer
IGF Invoice Finance is a UK engineering and metals specialist with no minimum turnover, long-cycle manufacturing underwriting (work-in-progress as separate sub-line), and tier-2 automotive / aerospace supply chain experience. Service charge 1.0% to 2.0%. Best for smaller engineering files and concentrated tier-1 customer exposure.
Summary
IGF Invoice Finance (UK independent specialist) targets the engineering and metals sector with sector-specific underwriting that handles long manufacturing cycles, milestone billing, and work-in-progress treatment. No formal minimum turnover (one of the few UK providers without a floor), making it accessible to smaller engineering subcontractors below the £50k threshold at Bibby and Close Brothers. Service charge 1.0% to 2.0% reflecting underwriting complexity; advance rates 85-90% on completed invoices, 50-70% on WIP. Sub-sector coverage: precision engineering, CNC, fabrication, automotive tier-2 (Nissan, JLR, BMW, Toyota supply chain), aerospace tier-2/3, marine, defence, energy engineering.
This Page Covers
IGF engineering / metals underwriting, no-minimum-turnover positioning, work-in-progress structuring, tier-2 supply chain support, typical pricing
Not Covered Here
Provider review across all sectors (see /providers/igf/), engineering finance via other providers, asset finance for engineering equipment specifically
The No-Minimum-Turnover Advantage
Most UK invoice finance providers set a minimum turnover floor: Bibby £50k, Close Brothers £50k, Skipton £100k, Aldermore £250k, HSBC £500k. Smaller engineering subcontractors often start with one or two named tier-1 customers, modest annualised turnover, but real invoices and a real cash gap to fund. IGF underwrites these files on customer quality and invoice strength rather than turnover threshold.
This is particularly valuable in engineering supply chains where a small CNC shop might run £30k to £50k turnover with two or three blue-chip tier-1 customers (Rolls-Royce, BAE, Boeing, Caterpillar). The trading volume is small but the receivable quality is excellent. IGF will look at this; most generalist providers will not.
Typical IGF Engineering Facility
| Element | IGF Engineering Pricing |
|---|---|
| Service charge | 1.0% to 2.0% of invoice value |
| Discount charge | Base + 2.0% to 3.5% (currently 5.75% to 7.25% all-in) |
| Advance rate (completed invoices) | 85% to 90% |
| Advance rate (work-in-progress) | 50% to 70% with milestone release |
| Min turnover | No formal floor (case by case on smaller files) |
| Setup time | 7 to 14 working days, longer for files with contract review |
| Confidential discounting | Available for files with established credit control, typically £500k+ |
When IGF Wins for Engineering
- Sub-£50k turnover engineering subcontractor. No-minimum positioning makes IGF often the only mainstream provider willing to engage.
- Concentrated tier-1 customer exposure. IGF underwrites concentration on a customer-quality basis rather than applying blanket concentration caps.
- Long-cycle work with WIP element. Sector-specific WIP structuring is institutional, not learned per-file.
- Metals, automotive, aerospace tier-2 / tier-3. Long track record in these sub-sectors; underwriting culture matches the customer-quality profile.
When to Look Elsewhere
- Pricing is critical and turnover is over £500k. Close Brothers' 0.5% service charge wins on pure cost.
- Speed of setup matters. IGF's 7 to 14 day setup is slower than Ultimate Finance (5 to 7 days) or Bibby (5 to 10 days).
- Higher advance rate needed. Ultimate Finance reaches 95% on strong engineering files; IGF caps around 90%.
- Banking-relationship preference. Close Brothers or Bibby for files where regional team continuity and bank-tier brand recognition matter.
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IGF Engineering FAQ
Why IGF for engineering?
IGF Invoice Finance has a long-standing UK engineering and metals book, with underwriters familiar with long manufacturing cycles, milestone billing, work-in-progress treatment, and the tier-1 / tier-2 supply chain mechanics that define engineering invoice finance. The provider has no formal minimum turnover (one of the few in the UK market), making it accessible to smaller engineering subcontractors who fall below the £50k to £100k floors at Bibby and Close Brothers.
What engineering sub-sectors does IGF cover?
Precision engineering, CNC machining and milling, fabrication (steel, aluminium, composite), automotive supply chain (tier-2 suppliers to Nissan, JLR, BMW, Toyota), aerospace tier-2 and tier-3 supply chain, marine engineering, defence engineering subcontractors, energy engineering (renewables, oil and gas), and specialist heavy engineering. The underwriting question is the customer base and contract structure rather than the sub-sector.
How does IGF handle long manufacturing cycles?
Engineering invoices often represent the final stage of a 3 to 12 month production cycle. IGF can structure the facility to advance against work-in-progress (WIP) separately from completed invoices, with appropriate carve-outs at lower advance rates (typically 50% to 70% on WIP vs 85% to 90% on completed work). Milestone billing under tier-1 contracts is handled directly with appropriate documentation review.
What is IGF's pricing for engineering?
Service charge typically 1.0% to 2.0% of invoice value, reflecting the higher underwriting complexity vs standard B2B trade. This is at the higher end of UK independent invoice finance pricing but lower than fintech alternatives offering similar engineering-aware underwriting. Discount charge at Bank of England base rate plus 2.0% to 3.5% (currently 5.75% to 7.25% all-in). Advance rates 85% to 90% on completed work, 50% to 70% on WIP where applicable.
Who is IGF best for?
Engineering SMBs with annual turnover from sub-£50k (pre-revenue subcontractors) through to £10m. The provider is particularly strong on smaller engineering files where the larger UK specialists (Bibby £50k floor, Close Brothers £50k floor) are not the closest fit on attention or sector-specific underwriting. Established engineers in tier-2 automotive or aerospace supply chains with concentrated customer exposure also fit well.
How does IGF compare to Close Brothers on engineering?
Both have engineering-specific underwriting. Close Brothers is cheaper on starting service charge (0.5% vs IGF's 1.0%) and carries FTSE 250 banking security. IGF has no minimum turnover (vs Close Brothers' £50k floor for invoice finance), generally higher tolerance on concentrated customer files, and longer specialist track record in metals and heavy engineering. For larger engineering files Close Brothers usually wins on price; for smaller specialist engineering files (especially with concentrated tier-1 customer exposure) IGF often wins on willingness to engage.