Useful Information About Contract Financing -Greendayonline

Is Contract Financing a Form of Financing?

Contract financing is a solution for companies that have been granted the contract but cannot raise funds to complete the contract. The lender usually advances some portion of the agreement to ensure that the company successfully finishes the project. Contract finance can be costly and is best used to fund opportunities to grow. Businesses that require capital to support multiple contracts are ideal candidates. Lenders prefer working with businesses with various contracts since they offer alternative ways of repaying. Contract finance may take diverse forms, like loans against entertainment and sports contracts or financing for government contractors awarded a bid.

Contract finance is distinctive in that lenders permit a portion of the money to be utilized to fund “mobilization,” or get the project off the ground. For instance, when a government contractor gets a contract to perform work in an overseas region before the actual contract work starts, the company might receive funds to create an operational base in another country to oversee the project and train employees.

On, you will find the financing you want. Many of our customers, businesses similar to yours, can access the capital needed for their business regardless of the current economic times.


Step 1: Receive Supplier Invoice

The business owner will pledge the future payment of a new contract negotiated with commercial or government clients for the loan.

Step 2. Supplier is paid, And Client is invoiced

The lender will loan the amount of up to 90 percent of the contract value in exchange for future earnings from the contract.

Step 3. Collections and Payment

Your lender will be responsible for receiving payment from your customer. When your lender gets the money, they will pay the remainder to you(with the invoice issued by the supplier and any fees taken out).

Who is eligible to apply for contract Financing?

  • Businesses that were awarded contracts and required funds to finish the project.
  • You’d like to grow your business and accept more major contracts
  • from companies that don’t meet the requirements to receive financing from traditional banks or financial institutions.


  • Improve Cash Flow from Existing Assets – bridge the gap between collection and invoices and get access to 90 percent of the money tied to your invoices in just 24 hours.
  • Quick and easy to qualify Credit and your company’s financial situation aren’t the primary criteria to determine eligibility, and a line of credit is available within 24 hours!
  • Growth Opportunities Profit from opportunities to grow and acquire through increasing your funding with your needs.
  • Flexible – The line credit is directly linked to the number of your accounts receivable and other assets. Therefore, it will rise as your contracts grow. In most cases, increases can be accepted quickly, and your business won’t have to go through the underwriting procedure again.
  • Lower Costs: Asset-Based Financing is cheaper than the majority of alternatives.
  • It opens the door to new Business Opportunities. Your financing will increase as the duration of your contracts expand. This allows you to sign several agreements simultaneously and increase the size of your company.

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