Receivables Funding
Allows early release of cash against future contractual income.
On day one of the agreement, the lender advances a percentage, or even the whole, of the total income expected during the term of the contract.
e.g. Company A has a contract with institution B to provide goods or services over a period of five years, for a payment of £1 million per year. Total contract value £5 million.
The lender advances £4 million on day one, to be repaid over the term of the contract. The loan is secured on the contract itself.
The capital released may be used for any legitimate business purpose, including the expansion of the company’s staff and infrastructure, thus enabling it to take on and fulfill the said contract.
The company’s assets are left unencumbered and free for any other finance arrangements.
For a no obligation discussion or more information, call our enquiry team on
0800 085 1706, we’ll be happy to help.
If you prefer us to call you, then contact us via email for call back at your requested time.
