Compare ^{Contract Finance} Options For 100k Agreements

With Invoice Discounting, a business raises invoices against a contract, then a lender advances funds based on the invoice values. This facility typically suits professional services, engineering, and technology companies. It’s a practical solution for firms with lengthy customer payment terms, providing VAT-registered companies with £10,000 to £2,000,000 over 3 to 24 months, at 1% to 3% above base rate per month.

This finance ensures your suppliers are paid directly by the lender, guaranteeing shipment of goods before the majority of funds are released post-delivery. Typical loan amounts range from £20,000 to £5,000,000 over 1 to 12 months, with rates of 3% to 8% monthly, depending on risk and trade terms. Sectors such as manufacturing and wholesale distribution benefit from this facility.

Lenders assess the contract and a business’s capacity to deliver, then release funding based on agreed milestones. Commonly used in construction, IT consultancy, and infrastructure, it provides £50,000 to £1,000,000 over 6 to 36 months at 6% to 15% APR. This type supports substantial up-front costs associated with large-scale projects.