What to do when you have work but you need money to get it doneVenture Central firstname.lastname@example.org
It is always exciting when a customer gives you work, but it can also be stressful as you know that you can only invoice them once the work is completed and you’ll need enough money in the meantime to enable you to buy the supplies and pay the resources needed to complete the work.
Fortunately lenders understand this problem and there are two types of finance that can help you: purchase order or contract finance. Lenders are only interested in official, signed purchase orders or contracts from large, reputable companies that have a good repayment history.
How the finance will be made available is heavily dependent upon how established your business is. For example, if you are a new startup and have landed a good contract with a reputable client, lenders might want to team up with you to project-manage the work. In some cases, the client must be prepared to pay the lender, who then deducts their repayment fee before transferring the balance of the money to you.
Visit Finfind to read more about this useful type of small business funding. Finfind has summarised the different types of finance and has articles on what lenders would expect from you in order to apply for contract or purchase order finance.