Several new lenders that have opened recently are willing to work with small businesses to offer them locked-in contracts at rates that the companies can afford. These lenders are willing to advance small businesses money to fund daily operations and expenses before the work contract even takes effect.
When companies enter a new and larger contract, sometimes they must seek out additional capital in order to fulfill the contract while also keeping up with their additional financial commitments.
Contract financing is specifically aimed at businesses that need their capital available before work on the contract is complete.
Other types of working capital financing include:
Accounts Receivable Financing is asset financing that allows a company to put up its receivables as collateral for financing agreements to help them advance their businesses.
Purchase Order Financing is an option for manufacturers who need to be lent capital in order to fulfill one or several large orders.
Production Financing helps manufacturing companies who need extra capital in order to expand facilities in order to produce more goods.
Many of these different lenders have entered into agreements, largely with software companies, in order to get them the capital they need to produce the software. Most of these companies have already produced the software and just need money in order to help them produce the software and distribute it to their customers. They are already locked into the contracts and must fulfill them.
Contracting financing is a viable option for some businesses, but you always want to consult with a knowledgeable lawyer to ensure that the deals you sign are in your best interest. Lawyers can often help you add small contracts to the clauses that these companies provide that can help you use this type of investment down the line.
For more information on if this type of financing may work for your company, please feel free to contact us for further information. We are always here and happy to help.