Compare Contract Financing to Traditional Funding

Contract Financing

Frequently Asked Questions

Q. Who can utilize Contract Financing?

A. Any Manufacturer, vendor or service provider who provides a service under contract and utilizes some equipment to provide the service.

Q. How does it work?

A. Each transaction is a custom product designed to meet the needs of the vendor/service provider and their end user.

Q. Does the Vendor/Service Provider need to have good credit or substantial time in business?

A. Underwriting focuses on the credit worthiness of the end user for whom the services are being provided.

Q. What qualifies a deal?

A. End user should be near investment grade or investment grade and exhibit a S and P bond rating of BB or better.

Q. What is the rate?

A. From the end users perspective, this is not a product with an inherent rate. Their contract is a contract for services. Payment for those services is an expense. As they are not financing equipment, nor do they have ownership in the equipment, there is no traditional financing costs.

Q. How much will we advance?

A. The advance amount is wholly contingent upon what the end user will agree to pay. It may cover just the equipment or possibly additional working capital for the service provider.

Q. When is this most likely to work?

A. When there is a unique service or product being provided or when there is an excellent existing relationship between the two parties.

Q. Why would the end user agree to Monetizing terms?

A. To facilitate receipt of necessary or unique services.

Recent Examples of Contract Financing

Learn more about Contract Financing

Who, What, Why, and How of Contract Financing

Contract Financing

Turn your business contracts into cash instead of waiting months or years to receive payment.

Industries Where Contract Financing is Working: