FINANCE OPTIONS

Compare ^Contract ^Finance Options For Your 1m Contracts

Q: How much can I borrow with 1m contract finance?

You can typically borrow from £10,000 up to £5 million. The exact amount depends on your contract’s value, your client’s credit rating, and your business’s financial health.

Q: How long does it take to get approved?

Most lenders provide an initial decision within 1 to 2 weeks. After approval, funds are usually available in a further 1 to 2 weeks, depending on your documents and lender workload.

Q: What are typical rates and fees for 1m contract finance?

Rates often range from 1% to 7%, influenced by contract terms, client credit, and your company’s profile. Additional arrangement and service fees may also apply.

Q: What types of contract finance are available?

Common types include invoice factoring, invoice discounting, and contract hire purchase, each offering a different approach to unlocking cash tied up in contracts or acquiring equipment.

1m Contract Finance enables UK SMEs to unlock working capital by borrowing against secured contracts worth £1 million. This option provides funding before a contract’s completion, bridging cash flow gaps so businesses can meet obligations and take on new projects. With access to funding based on the value and security of client contracts, businesses enjoy improved cash flow, more financial flexibility for large or unexpected orders, and greater predictability around future income streams.

Contract Finance

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^Benefits of 1m Contract Finance

Choosing contract finance for your million-pound agreements means leveraging future revenue to support your operational goals. This tailored approach offers business growth potential, improved cash flow, and reduced financial risk, using verified contracts to determine eligibility and funding amounts. Typical decisions take 1 to 2 weeks, with rates influenced by client credit and business health.

Cash Flow Improvement

Growth Opportunities

Reduced Financial Risk

SCALE YOUR BUSINESS TO NEW HEIGHTS

Types of 1m Contract Finance

Invoice Factoring

Invoice factoring suits companies with large, secured contracts. Eligible UK businesses sell invoices to lenders for upfront funding worth up to £2 million, usually within 18-month terms at 1% to 3% per month.

Invoice Factoring

With invoice factoring, the business receives an advance by selling its invoices directly to a finance provider. The lender collects directly from your client, which can help manage long payment cycles in industries such as construction or manufacturing. This option addresses cash flow gaps between raising invoices and payment receipts, giving you prompt access to working capital to deliver on significant contracts.

Invoice Discounting

Invoice discounting enables UK companies (typically with £500k turnover and creditworthy clients) to borrow against outstanding invoices up to £5 million. Annual fees range from 0.5% to 5%.

Invoice Discounting

This type maintains your company’s control of the sales ledger and client relationships. You draw funds against unpaid invoices while handling collections yourself. It’s suitable for businesses seeking discretion in financing, such as those in wholesale or logistics, and allows you to smooth cash flow without third-party involvement with your clients.

Contract Hire Purchase

Contract hire purchase supports the purchase of equipment needed for a contract, with amounts from £15,000 to £1 million over 6 to 60 months at 3% to 7% APR fixed rates.

Contract Hire Purchase

Hire purchase enables businesses with robust trading history and good credit to acquire necessary equipment by spreading payment over time. The purchased asset typically serves as security, and once the contract is completed, the item belongs to your business. It’s commonly used in construction, transport, or manufacturing where substantial assets are needed to fulfil contractual obligations.

Typical Funding Journeys on Funding Agent

Submit your funding request

Our platform enriches your application using business data

Your request is matched to suitable lenders

Receive offers and proceed with the best option

How to Get 1m Contract Finance with Funding Agent

Complete Application

Share details about your business, contracts, and specific financing needs securely via the online application form on the Funding Agent platform.

Receive Lender Offers

Funding Agent compares offers from multiple lenders, so you can review choices suited to your contract’s value and your circumstances.

Select and Fund

Choose the offer that fits your needs, finalise the documentation, and receive your funding promptly upon approval.

Compare 1m Contract Finance Options

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Real Scenarios

Construction Company Needing Fast Working Capital

Situation

A construction firm had a short-term cash gap before a large invoice was paid and needed £85,000 to cover materials and payroll.

Challenge

Traditional bank applications were too slow; they needed a decision and funds within days.

Outcome

Funding Agent matched them with a lender; they received a working capital facility and bridged the gap until the invoice was paid.

Ecommerce Business Preparing for Peak Season

Situation

An online retailer needed around £120,000 to stock up ahead of Black Friday and the Christmas rush.

Challenge

They wanted flexible terms and a quick turnaround so stock could be ordered in time.

Outcome

Through Funding Agent they secured a facility, placed orders in time and managed peak demand without cash flow stress.

Marketing Agency Using Invoice Finance

Situation

A marketing agency had strong clients and reliable invoices but often waited 60–90 days for payment.

Challenge

They needed to unlock cash tied up in unpaid invoices to pay staff and take on new projects.

Outcome

Funding Agent connected them with an invoice finance provider; they now access funds against approved invoices and smooth out cash flow.

Property Developer Using Bridging Finance

Situation

A developer needed short-term finance to complete a purchase before selling an existing property.

Challenge

They required a fast decision and flexible terms to align with the sale timeline.

Outcome

Funding Agent matched them with a bridging lender; they completed the purchase and repaid the facility when the sale completed.

FAQ’S

How much can I borrow with 1m contract finance?

How long does it take to get approved?

What are typical rates and fees for 1m contract finance?

What types of contract finance are available?

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Compare ^Contract ^Finance Options For Your 1m Contracts

^Benefits of 1m Contract Finance

SCALE YOUR BUSINESS TO NEW HEIGHTS

Types of 1m Contract Finance

Invoice Factoring

Invoice Factoring

Invoice Discounting

Invoice Discounting

Contract Hire Purchase

Contract Hire Purchase

Typical Funding Journeys on Funding Agent