Best Invoice Factoring Companies for Aerospace & Defense Manufacturing

The aerospace and defense manufacturing sector faces unique financial challenges that demand specialized invoice factoring solutions. With payment cycles stretching to 90-120 days while operational expenses like payroll, materials, and compliance costs can't wait, manufacturers need reliable financing that understands their complex supply chains and government contract requirements. Global defense spending has reached unprecedented levels, hitting approximately $2.7 trillion in 2024, creating both opportunities and cash flow pressures for suppliers navigating heavily regulated government contracts governed by FAR, CAS, and DFARs. For aerospace and defense manufacturers seeking to offer flexible payment terms while maintaining healthy cash flow, Resolve's B2B Net Terms platform provides a modern alternative that streamlines the entire credit-to-cash lifecycle with embedded intelligence and risk mitigation.

Key Takeaways

• Aerospace and defense manufacturers require factoring solutions that handle 90-120 day payment cycles while providing immediate working capital to fund operations
• Government contract expertise is essential, with specialized knowledge of FAR, CAS, and DFARs regulations for defense contractors
• Non-recourse financing options eliminate credit risk while providing advance rates typically ranging from 70-96% of invoice value
• Aerospace-specific factoring providers offer industry expertise for aircraft manufacturers, parts suppliers, and defense technology companies
• Modern platforms like Resolve combine AI-powered automation with traditional factoring benefits to streamline credit management and collections
• DoD Trusted Capital providers offer specialized financing for defense-tech companies and national security contractors
• Integration capabilities with existing ERP systems ensure seamless financial operations and real-time data synchronization

1. ResolvePay - Modern Alternative to Traditional Factoring

Resolve Pay offers aerospace and defense manufacturers a comprehensive B2B payments platform that goes beyond traditional invoice factoring. Rather than simply advancing funds against invoices, Resolve provides embedded credit expertise, automated accounts receivable management, and flexible net terms options that enhance buyer relationships while protecting seller cash flow. The platform's non-recourse structure means Resolve assumes the credit risk, allowing manufacturers to confidently offer competitive payment terms without jeopardizing their financial position.

Key Features

• Non-recourse financing that eliminates merchant credit risk completely
• AI-driven platform automates entire net terms workflow from invoice to payment
• Instant credit decisions powered by AI help buyers check out with no paperwork
• Advance pay up to 100% on invoices from approved customers
• White-label payment portal maintains brand relationship with buyers
• Seamless integration with QuickBooks Online, NetSuite (Oracle), and Shopify
• Automated reconciliation for any invoice structure

Aerospace & Defense Relevance

Resolve's platform addresses the specific challenges faced by aerospace and defense manufacturers, including extended payment cycles and complex buyer relationships. The ability to offer net 30, 60, or 90-day terms while receiving payment within days transforms cash flow management for companies dealing with government contracts and large commercial aerospace clients.

The platform's AI-powered credit assessment provides deeper insights than traditional bureaus, with experts formerly of Amazon, PayPal, and Fortune 500 firms delivering data-rich credit decisions. This is particularly valuable in the aerospace sector where buyer creditworthiness can be complex to evaluate due to government contracting structures and specialized business models.

Resolve's Better Than Factoring approach eliminates the hidden fees and complex structures often associated with traditional factoring, providing transparent, risk-free financing that scales with business growth.

2. Leonid Capital Partners

Leonid Capital Partners stands out as a specialized financial services provider with DoD Trusted Capital Provider status, making them uniquely qualified to serve defense-tech and national security contractors. Their focus on government invoice factoring and SBIR Award Financing demonstrates deep understanding of the defense industry's unique funding requirements and regulatory landscape.

Key Features

• DoD Trusted Capital Provider certification
• Specialized government invoice factoring expertise
• SBIR Award Financing for defense technology startups
• Support for both prime contractors and subcontractors
• Focus on national security and defense technology sectors

Leonid Capital Partners' DoD Trusted Capital status provides a significant advantage for companies working on sensitive defense projects that require vetted financial partners. Their expertise in SBIR (Small Business Innovation Research) Award Financing is particularly valuable for aerospace startups and defense technology companies that rely on government research grants to fund development.

3. Business Factors & Finance

Business Factors & Finance offers aerospace and defense manufacturers some of the industry's highest advance rates, with transparent fee structures that eliminate hidden costs. Their specific categorization of aerospace and defense suppliers demonstrates targeted industry expertise, while their government contract financing capabilities address the sector's unique requirements.

Key Features

• Advance rates up to 92% of invoice value
• Transparent fee structure ranging from 1-5% per 30 days
• Both recourse and non-recourse factoring options
• Specific aerospace & defense suppliers category
• Government contract financing expertise
• 24-48 hour funding after account setup

Business Factors & Finance's exceptional advance rate of up to 96% provides maximum working capital for aerospace manufacturers dealing with high-value contracts and extended payment terms. Their transparent fee structure eliminates the guesswork often associated with traditional factoring, allowing companies to accurately calculate their financing costs.

4. 1st Commercial Credit

1st Commercial Credit brings over 20 years of government contractor experience to aerospace and defense manufacturers, serving more than 3,600 clients with specialized knowledge of federal contract complexities. Their deep understanding of government documentation requirements and regulatory frameworks makes them particularly valuable for companies new to federal contracting or seeking to expand their government business.

Key Features

• 20+ years in business specializing in government contractors
• 3,600+ clients served
• Government receivables financing expertise
• Understanding of complex government contract terms and regulations
• 24-48 hour funding after setup

1st Commercial Credit's two decades of government contractor experience provides invaluable expertise for aerospace and defense manufacturers navigating federal procurement. Their extensive client base demonstrates reliability and consistent service delivery in a challenging regulatory environment.

5. Bankers Factoring

Bankers Factoring offers a dedicated aerospace & aviation factoring program with industry-leading advance rates and same-day funding capabilities. Their specialized focus on aerospace manufacturing, avionics, and defense contracts demonstrates deep sector commitment and expertise.

Key Features

• Dedicated aerospace & aviation factoring program
• Advance rates of 80-93%
• Same-day funding capability
• Non-recourse bad debt protection

Bankers Factoring's dedicated aerospace program addresses the specific needs of aircraft manufacturers, parts suppliers, and aviation service providers. Their same-day funding capability is particularly valuable for companies dealing with just-in-time manufacturing requirements and urgent material procurement needs common in aerospace production.

6. eCapital

eCapital provides enterprise-scale financing solutions for large aerospace and defense manufacturers, with international presence in North America and the UK. Their knowledgeable staff's familiarity with FAR, CAS, and DFARs regulations demonstrates deep government contracting expertise suitable for major defense contractors.

Key Features

• Enterprise-scale financing capabilities suitable for major contractors
• Within 24 hours funding
• Familiarity with FAR, CAS, DFARs regulations
• North America and UK coverage
• Knowledgeable staff with government contracting expertise
• Up to 90% advance rates

eCapital's enterprise-scale capabilities make them ideal for major aerospace manufacturers and prime defense contractors handling large government programs and international sales. Their ability to accommodate substantial working capital needs of companies producing aircraft, defense systems, and major components positions them well for established contractors.

7. Integra Funding Solutions

Integra Funding Solutions specializes in supporting aerospace innovation and R&D through tailored factoring solutions that preserve credit lines while providing immediate working capital. Their dedicated aerospace industry page and focus on cash flow for innovation demonstrate deep understanding of the sector's unique funding requirements.

Key Features

• Dedicated aerospace industry solutions
• Focus on cash flow for innovation and R&D
• Non-recourse factoring options for bad debt protection
• Debt-free funding preserving existing credit lines
• Same-day or 24-hour funding
• Credit checks on customers for risk management

Integra Funding Solutions' focus on innovation and R&D funding addresses a critical need in the aerospace sector, where continuous technological advancement drives competitive advantage. Their debt-free funding approach preserves existing credit lines, allowing companies to maintain financial flexibility for other strategic initiatives.

8. Riviera Finance

Riviera Finance offers specialized support for aerospace and semiconductor suppliers through CHIPS Act financing, addressing the modern supply chain requirements of the aerospace and defense industry. Their 24-hour funding capability and multi-language support make them valuable for companies with international operations.

Key Features

• CHIPS Act-related support for semiconductor and advanced manufacturing suppliers
• Within 24 hours funding
• 70-90% advance rates
• Non-recourse factoring with bad debt protection
• Multi-language support (English, Spanish, French)
• Immediate cash flow with competitive rates

Riviera Finance's CHIPS Act financing support addresses a critical modern requirement in aerospace and defense manufacturing, where semiconductor availability and advanced electronics are essential components. Their specialized understanding of this intersection between semiconductor supply chains and aerospace manufacturing provides targeted solutions for companies navigating these complex requirements.

9. Seacoast Business Funding

Seacoast Business Funding offers a combination of aerospace & defense industry specialization with government receivables financing expertise. Their Florida-based operations with aerospace focus and 24-hour funding capability after account setup demonstrate targeted industry knowledge and operational efficiency.

Key Features

• Dedicated aerospace & defense industry category
• Government receivables financing expertise
• Within 24 hours funding once account setup complete
• No collateral needed beyond outstanding invoices
• Financing that grows with business
• Florida-based provider with aerospace focus

Seacoast Business Funding's dual expertise in aerospace manufacturing and government receivables financing makes them particularly valuable for companies serving both commercial aerospace and defense markets. Their dedicated aerospace approach demonstrates targeted industry knowledge, while their government receivables expertise ensures they can handle the complex documentation and compliance requirements of federal contracts.

10. Plex Capital

Plex Capital specializes in government contracting compliance and regulatory expertise, making them valuable for aerospace and defense manufacturers navigating complex federal procurement requirements. Their personalized support with custom factoring plans and verified client testimonials demonstrate reliable service delivery in this specialized market.

Key Features

• Government contracting specialization
• Expertise in compliance and regulations
• 80-90% advance rates
• 24-48 hour funding
• Personalized support with custom factoring plans
• Verified client testimonials and community focus

Plex Capital's deep government contracting compliance expertise addresses a critical need for aerospace and defense manufacturers dealing with complex federal procurement requirements. Their understanding of government documentation requirements and regulatory frameworks reduces the administrative burden on companies navigating this challenging environment.

Choosing the Right Invoice Factoring Partner for Your Aerospace & Defense Business

Selecting the right invoice factoring partner for aerospace and defense manufacturing requires careful evaluation of your specific operational needs, contract types, and growth trajectory. The sector's unique challenges—including 90-120 day payment cycles, complex government regulations, and high-value contracts—demand factoring solutions purpose-built for these requirements.

For aerospace and defense manufacturers seeking to eliminate credit risk while maintaining healthy cash flow, Resolve Pay's integrated platform offers a compelling modern alternative to traditional factoring. The platform's ability to advance payment while assuming credit risk enables manufacturers to offer competitive net terms without jeopardizing their financial position. This becomes particularly valuable when working with government agencies, prime contractors, and commercial aerospace customers who expect flexible payment options.

The AI-powered credit assessment and automated AR workflows accelerate the order-to-cash cycle while reducing administrative overhead. Combined with seamless ERP integration capabilities, Resolve Pay provides aerospace and defense manufacturers with a comprehensive platform that addresses both immediate cash flow needs and long-term customer relationship management.

Whether you're a defense-tech startup requiring DoD Trusted Capital certification, a major aerospace manufacturer needing enterprise-scale financing, or a specialized parts supplier seeking industry-specific expertise, the right factoring partner serves as strategic infrastructure that supports sustainable growth in this demanding but rewarding sector.

Frequently Asked Questions

How does invoice factoring address the 90-120 day payment cycles common in aerospace and defense manufacturing?

Invoice factoring addresses the aerospace and defense industry's extended payment terms by advancing a significant portion of the invoice value (typically 70-96%) immediately upon invoice submission, while customers maintain their standard 90-120 day payment terms. This provides immediate working capital to fund operations, payroll, and material procurement without requiring customers to change their payment behavior. The factoring company then collects the full invoice amount from the customer when payment is due.

What is the difference between traditional invoice factoring and modern platforms like Resolve?

Traditional invoice factoring typically focuses solely on advancing funds against invoices, often with complex fee structures and limited additional services. Modern platforms like Resolve combine invoice financing with comprehensive accounts receivable automation, AI-powered credit assessment, and integrated payment processing. Resolve's approach eliminates hidden fees, provides non-recourse financing that assumes credit risk, and offers white-label customer experiences that maintain brand relationships while streamlining the entire credit-to-cash lifecycle.

How important is government contract expertise for aerospace and defense factoring?

Government contract expertise is essential for aerospace and defense factoring due to the complex regulatory environment governed by FAR, CAS, and DFARs regulations. Factoring companies with government contracting experience understand the documentation requirements, payment processes, and compliance obligations associated with federal contracts. This expertise ensures smooth processing of government invoices and reduces the administrative burden on manufacturers navigating federal procurement requirements.

What advance rates can aerospace manufacturers expect from invoice factoring?

Aerospace manufacturers can typically expect advance rates ranging from 70% to 96% of invoice value, depending on the factoring company and specific terms. Companies like Business Factors & Finance offer some of the highest rates at up to 96%, while others like Bankers Factoring provide 80-93% advance rates. The advance rate may vary based on customer creditworthiness, contract type, and the factoring company's risk assessment.

Can invoice factoring integrate with existing ERP systems used by aerospace manufacturers?

Yes, leading invoice factoring solutions offer integration capabilities with major ERP systems commonly used by aerospace manufacturers. Resolve Pay provides seamless integration with QuickBooks, Oracle, Shopify, and other platforms, ensuring automated invoice synchronization and real-time payment updates. Traditional factoring companies may offer varying levels of integration, so it's important to verify specific ERP compatibility when evaluating factoring partners. Modern platforms typically provide more comprehensive integration capabilities than traditional factoring services.

This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Resolve assumes no liability for actions taken in reliance upon the information contained herein.