If you have a signed contract for a large order, but don’t have the finance to purchase the supplies or finance for the resources to complete the work, then contract finance is a good option. You can also consider this option if you are tendering for a large contract. In this case, you would approach the contract financier and if they agree to finance you, should you win the tender, they will issue you with a letter of intent that you can include in your tender submission.
What are your options?
For larger amounts:
- Contract finance (e.g. purchase order financing).
- Government lending agencies and niche small business lenders.
- Equity Finance (lender buys shares in your company).
For smaller amounts:
- Term loans (lender gives you money for a fixed period and charges you interest).
- Personal or business overdrafts.
- Personal or business credit cards.
- Customer deposits (customer pays a % of the total contract value upfront).
- Equity finance (lender buys shares in your company).
- Debtor finance (borrowing against an invoice).
- Supplier finance (lender gives you the supplies on credit for a fixed period).
- Government lending agencies.
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