A contract larger than your normal workload is the best kind of problem in business : and one of the most common reasons owners seek funding. The challenge is specific: you need cash now to deliver, and revenue arrives later, on the contract's terms.
Several structures exist precisely for this shape of problem.
If the contract produces invoices: factoring or AR financing
When you'll invoice a creditworthy customer, factoring or receivables financing turns those future invoices into working cash now. For staffing, wholesale, and service contracts, this is often the cleanest fit : capacity grows with the contract itself.
If you need to buy inventory or materials first
Purchase-order situations : where you must pay suppliers before you can invoice : call for working capital or PO-based structures. The key is showing the funder the contract and the supplier quotes: a documented order is one of the strongest bases for short-term funding.
Plan the repayment around the contract, not the calendar
Whatever structure you use, the repayment should map to the contract's payment milestones. Before signing anything, line up: delivery dates, invoicing dates, expected customer payment dates : and confirm the structure's repayment rhythm matches.
Frequently Asked Questions
Want to explore your options?
If this topic relates to a funding need you have, you can begin a funding request through Kennify's financing partner at any time.