Winning a major bid is a fast way to rapidly grow your business. But this good news may also exhaust your cash supply, making it difficult to fulfill the contract, cover current obligations and take on new business. Contract financing provides you cash flow so you can take advantage of growth opportunities. It is an ideal solution for companies with construction, government or commercial contracts.
Here’s how it works: You enter into a contract with a credit worthy customer. The contract finance company advances you a percentage of the money that will be owed to you when you complete the contract. You use this money to cover cash flow needs to help you fulfill the contract. You pay back the loan, either in a lump sum at the end of the contract, or over time through an agreed upon payment plan. Alternatively, your customer may pay the contract finance company directly and it will forward you the payment, less a fee.
Funds advanced by production financing can be used to:
- Purchase equipment
- Hire additional labor
- Pay suppliers
- Take on additional projects
Contract financing is easier to qualify for than a traditional loan and it can work alongside other types of lending, such as equipment loans.
Call the experts at Small Business Fundz and see if contract financing is the right solution for your business. Call us at (866)546-6002… today.
Other Types of Trade Finance
- Back-to-Back Letter of Credit
- Credit Insurance
- Floor Planning Financing
- International Trade Finance
- Letter of Credit Financing
Contact us for all of your funding needs.
“Your Success is Our Business”