Contract Finance: The working capital you need to take on a contract

The funding you need to get to work - when your client will take time to pay

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Funding options


Cash advances

  • Funding for contracting businesses
  • Cash in staged payments
  • Pay workforce and suppliers
  • Annual turnover above £250,000


  • Construction, IT and services sectors
  • Reduces demand on cashflow
  • No impact on your business credit
  • Cost effective

Supporting growth

  • Funds available weekly
  • Funding secured on contract value
  • Supports growing businesses
  • No limit to contract size

Talk to Rangewell – the business finance experts

We know how cashflow is a problem when you have a major contract. We know the lenders who can provide competitive funding that can help you take on the contracts you want

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

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If your business works to supply contracts, you may face a cashflow challenge.

Table of Contents

You will often be faced with the need to start work, staff up and perhaps even buy in new equipment to get the work done, but have to wait weeks or months until you receive a payment.

It can put a serious strain on your cashflow, and may even mean that you have to turn down a lucrative contract, because you cannot afford to fund it.

Contract Finance can help you ensure that contract working is not just possible, but profitable for your business.

What is Contract Finance?

Contract Finance is designed for companies that have been awarded a contract, but do not have the funds available from their own reserves to fulfil it. Contract Finance acts to advance funds against your future billing - in effect using the value of your contract as the security for a loan.

It means that when you need to pay your staff and suppliers, there’s no need to wait for your customers' payments first. So, you can take on ambitious new projects and be confident that your business will have the necessary cash flow. You can have the funds you need to deal with all your obligations, with no need for expensive funding from the bank or other providers.

How Contract Finance helps your business take on contracts - and grow

Your company may simply not have the cash reserves it needs to handle a large contract, particularly if it is still in its early stages. You will need to purchase supplies, pay for equipment and wages along with all other related expenses.

But you won’t be getting paid until you have made all these investments. Depending on the contract you have negotiated, you could be weeks into the project before you receive even an interim payment. A short contract could be complete before you receive the funds you need from your client.

It can put a chokehold on your business growth. You may have the skills and capacity to take on a profitable large contract only to have to walk away because you don’t have the necessary finance to start work.

Obviously, you can’t turn down lucrative contracts from clients you want for the long term. Contract Financing allows you to take on large orders, by ensuring you have the money you need. It can even help protect your business against unexpected late payments or project delays.

It also helps ensure that you can take on all the contracts you can handle, and grow your business fast.

How Contract Funding provides the cash you need

Contract Funding advances a proportion of the fee you have negotiated so your company can begin work on a particular contract.

With Contract Finance, the finance company will expect to see a detailed contract from a reputable end customer. They will want to ensure that your buyer will really be able to pay for the work once the contract has been completed.

This means that it is the credit rating of your end customer, rather than that of your own business, which will be central to securing the finance you need. Working for a large organisation, such as a major developer, a local authority or a central government organisation, might all be ideal.

The finance provider will then make a cash advance to your business, which will allow you to buy in supplies, equipment and staff to start work and deal with other costs. The level of funding advanced may depend upon your business sector, the value of the contract and the terms you have negotiated.  

This advance is unlikely to be for the entire value of the contract, although some providers may provide a high percentage of the total value, particularly if you have multiple contracts that you are funding.

Contract Funding is considered riskier than Purchase Order or Production Finance as the client may need to fulfil the entire contract to be paid. Costs are therefore a little higher to reflect the additional risk.

How it works

Once your facility has been approved, accessing your money is straightforward:

  1. Submit your contractual billing to your provider
  2. They will release an agreed percentage of the value to you minus their fee
  3. Once your customer makes a payment, the provider will release the remainder to you

Is Contract Finance right for your business?

Many businesses in the construction, IT and services sectors can use Contract Finance to fund their contract work. You need to:

  • Supply goods or services under contract. These contracts should be to a set time and price
  • Have an annual sales turnover of above £250,000
  • Work with reputable clients, who offer a good credit risk

Financial solutions from Rangewell

Contract Finance providers vary in the terms and costs of the finance they offer. Your business needs expert help to find the most competitive provider for your sector, your turnover and your ambitions.

At Rangewell, we can use our expertise to find the finance options to support your business – and ensure that you have the financial solutions you need. We can find providers who can deliver contract finance solutions that recognise the challenges you face and are tailored to your sector - reducing your costs, and increasing the levels of funding that you can call on.


  • Help arrange funding for a bathroom fitting company supplying a major developer

  • Find an arrangement for a plastics company providing components to an IT manufacturer

  • Find finance to let a shoe company fund a large overseas order

  • Source funding to support a furniture manufacturer supplying a government contract

  • Arrange funding for a new electronics hardware business with a major order from a high street retailer

Discover our range of finances

Every type of finance for every type of business

Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.

Helping you build your profits

  • Accelerate your cashflow
    Contact finance effectively accelerates cashflow, so that instead of waiting for customers to pay at the end of a contract, you can have cash up front.
  • Funding for the entire contract
    Contract finance can provide funding for the entire contract removing the need for additional funding.
  • A solution for growth
    Contract finance can be a solution for businesses that are growing at a rapid rate, letting you take on virtually any scale of contract.
  • Avoid the need for interim payments
    A large customer may expect credit terms and be unwilling to make any kind of interim payment. Contract finance can allow you to take on the project by providing the funds you need.
  • Fund multiple contracts
    Contract finance can cover multiple contracts, helping you ensure you can always call on the funds you need.
  • Fast funding
    Contract finance offers fast a access to your funds usually within 24 hours.

Download Rangewell’s free and detailed guide to Contract Finance

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Frequently asked questions

Have a question?

What is contract funding?

Contract Finance is designed for companies that have been awarded a contract, but do not have the funds available to fulfil it. Contract Finance acts to advance funds against your future billing - in effect using the value of your contract as the security for a loan.

What is a vendor finance agreement?

Vendor Finance is a form of lending in which a company lends money to be used by the borrower to buy the vendor's products or property. it is also known a trade credit.

What is an equipment finance agreement?

Equipment Finance is a loan that allows you purchase a piece of equipment secured on the equipment itself.. Once you’ve repaid your loan according to its terms, you fully own your equipment.

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Transparent and independent, treating all lenders equally, finding the best deals.


Every type of finance for every type of business from the entire market - over 300 lenders.


Specialist Finance Experts support you every step of the way.


We make no charge of any kind when we help you find the loan you need.