To take a contract you can't yet fund out of pocket, use working capital tied to the revenue the contract will produce: a revenue-based advance for fast cash, purchase-order or invoice financing when payment is delayed, or equipment financing for the machine that lets you deliver. Funding starts at $10,000, applicants with a FICO of 500 or higher are considered, and approvals typically return in 24 to 48 hours, fast enough to arrange while you are still negotiating the deal.
The constraint on a big contract is almost never demand, it is timing. You pay crews, buy inventory, cover subcontractors, put deposits on materials, or acquire a machine weeks or months before the client pays you. The decision to fund that gap comes down to one number: does the profit on the work comfortably exceed the cost of the capital that lets you take it? With a signed contract or firm purchase order, the revenue is not a guess, so the math is unusually clean. This page walks through the products that fit, realistic amounts and payback, and how to run the numbers before you commit.
Key takeaways
- Funding starts at $10,000, and applicants with a FICO of 500 or higher are considered.
- Approvals typically return within 24 to 48 hours, fast enough to run alongside contract negotiations.
- The decision hinges on ROI: net profit after financing cost, not the headline rate.
- Borrow to the job plus a modest buffer, not to the maximum you could qualify for.
- Match the product to how the contract pays: advances for fast revenue, PO or invoice financing for delayed payment, equipment financing for assets.
- Align the repayment schedule with your collection timeline so payments fit inside the new revenue.
- MCA relief lowers the daily or weekly payment on existing advances to ease cash flow; it is not a payoff or consolidation.
Start With the ROI Math, Not the Rate
Owners anchor on the cost of financing and stop there. That is the wrong first question. Ask instead what the contract earns and whether that profit survives the cost of capital. If the answer is a clear yes, the financing has done its job even at a higher cost, because without it you earn nothing on the contract at all.
A simplified example, rounded and illustrative, not a quote:
| Line item | Example amount |
|---|---|
| Contract value | $120,000 |
| Your direct costs (labor, materials, subs) | $80,000 |
| Gross profit if you deliver | $40,000 |
| Funding needed to cover upfront costs | $50,000 |
| Total cost of that funding (example) | $7,500 |
| Net profit after financing cost | $32,500 |
Here the financing consumes about 19% of the gross profit and leaves roughly $32,500 you would not have earned otherwise. The comparison that matters is not "$7,500 is expensive." It is "$32,500 in the bank versus zero." The moment the net-profit-after-financing line is comfortably positive, the decision is usually made. If the financing cost would swallow most of the margin, treat that as a signal the contract is underpriced or the funding amount is larger than the job needs, and fix both before you sign.
Match the Product to How the Contract Pays
Different contracts create different cash-flow shapes, and the funding should match the shape. A one-time job that pays on completion is not the same as a multi-year contract that pays monthly, and neither is the same as a large product order you must buy inventory for.
| Situation | Product that usually fits | Why |
|---|---|---|
| Need working capital fast to staff and supply a job | Revenue-based advance / short-term working capital | Funds in 24-48 hours, repaid from daily or weekly sales as the work generates revenue |
| Firm purchase order but no cash to fulfill it | Purchase order or inventory financing | Capital is tied directly to the order and the materials it requires |
| You invoice and wait 30-90 days to get paid | Invoice financing / factoring | Advances against receivables so you are not financing the client for free |
| Need a machine or vehicle to deliver at scale | Equipment financing | The asset secures the funding and outlives the contract |
| Repeat, seasonal, or ongoing capital needs | Business line of credit | Draw only what you need, when you need it |
Most owners taking a single large contract pick a revenue-based advance or short-term working capital: it closes fastest and repayment scales with the money coming in. Because funding starts at $10,000 and a FICO of 500 or higher is considered, a strong contract can carry an application a bank would decline on credit score alone. Underwriting weighs your recent deposits and the signed work over your credit file.
How Much to Borrow, and Realistic Payback
Borrow to the job, not to the ceiling. The right amount covers upfront costs plus a modest buffer for the surprises every large contract produces, and no more. Over-borrowing turns a profitable contract into a repayment burden that lingers after the work is delivered.
Illustrative amounts and payback windows for common contract sizes. These frame your planning, not offers:
| Contract size | Typical funding need | Example payback window |
|---|---|---|
| $25,000 - $50,000 | $10,000 - $20,000 | 4 - 9 months |
| $75,000 - $150,000 | $30,000 - $60,000 | 6 - 12 months |
| $200,000 - $400,000 | $75,000 - $150,000 | 9 - 18 months |
Two rules keep payback comfortable. First, align the term with how fast the contract pays. If you collect in 60 days, a very short repayment schedule strains you even on a profitable job, so favor a term that overlaps your collections. Second, keep each periodic payment well under the incremental cash the contract generates that period. A payment that fits inside the new revenue is invisible to the rest of the business. A payment sized against your entire cash flow is not.
Timing: Fund Before You Sign, Not After You Stall
The most expensive mistake is waiting until you are already behind. Owners sign, spend their reserves on the first phase, and only look for funding once payroll is at risk. By then the pressure is high and the options are few.
A better sequence: line up funding while the contract is being negotiated. You do not draw or accept anything until the deal is firm, but knowing the capital is available lets you commit with confidence and negotiate deposit terms from strength. With approvals typically back in 24 to 48 hours, this runs in parallel with finalizing the contract rather than after it.
Timing checklist:
- Apply once the contract or purchase order is realistic, not after work has started.
- Have three to six months of business bank statements ready; revenue history drives most fast approvals.
- Know your total upfront cost and your collection timeline before you request an amount.
- Confirm the payment schedule fits your projected cash flow for the life of the contract, not just month one.
If Existing Payments Are Blocking the Move
Some owners cannot take a new contract because current financing already consumes too much of their daily or weekly cash flow. There is no room to add a payment, even a profitable one. Here the goal is to free up room in the existing schedule first.
MCA relief, sometimes called reverse consolidation, works by lowering the daily or weekly payment you make on current advances so more cash stays in the business each week. It is a cash-flow easing measure, not a payoff or a buyout, and it does not erase or consolidate away what you owe. What it can do is reduce the weekly outflow enough to give you room to fund and deliver a new contract. If tight existing payments are the only thing standing between you and a job you can clearly profit on, easing that outflow may be the enabling step.
Qualifying and What Underwriters Actually Look At
For contract-driven funding, underwriters care less about a pristine credit file and more about whether the business can service the payment. Revenue history and cash flow do most of the work.
What strengthens an application:
- Consistent monthly deposits across recent bank statements.
- A signed contract or firm purchase order documenting the incoming revenue.
- Time in business and a clear picture of how the funds will be used.
- A request sized to the job rather than the maximum you might qualify for.
A FICO of 500 and above is considered, and funding starts at $10,000, so a marginal score does not automatically end the conversation when the revenue and the contract are solid. No lender can promise approval, and you should be wary of anyone who does. What you can do is present a clean, honest picture of the business and the contract so a decision comes back quickly, usually within 24 to 48 hours.
Frequently asked questions
Should I fund a large contract even if the financing looks expensive?
Look at the net profit after the financing cost, not the rate alone. If a contract earns $40,000 in gross profit (an example) and the funding costs a few thousand dollars, you keep the large majority of that profit versus earning nothing if you cannot take the work. Financing is only a problem when its cost would swallow most of the margin, which usually means the contract is underpriced or you are borrowing more than the job needs.
How much should I borrow to take on a big contract?
Borrow enough to cover upfront costs, labor, materials, subcontractors, and deposits, plus a modest buffer for surprises, and no more. Over-borrowing adds payments that outlast the work. As an example, a $120,000 contract with $80,000 in direct costs might need $40,000 to $60,000 in funding depending on your reserves and how fast the client pays.
Which type of funding is best for a new contract?
It depends on how the contract pays. A revenue-based advance or short-term working capital suits jobs that generate revenue quickly and is the fastest to close. Purchase order or inventory financing fits firm orders you must buy materials for. Invoice financing helps when you invoice and wait 30 to 90 days. Equipment financing fits when you need a machine or vehicle to deliver.
How fast can I get funded?
Approvals typically return within 24 to 48 hours when your bank statements and, ideally, your signed contract or purchase order are ready. That speed lets you arrange funding in parallel with finalizing the contract rather than scrambling after work has already started.
Can I qualify with a low credit score?
Applicants with a FICO of 500 or higher are considered, and revenue history usually carries more weight than the score for contract-driven funding. Consistent monthly deposits and a documented contract strengthen the application. No lender can guarantee approval, so be wary of anyone who promises it, but a solid revenue picture keeps the conversation open even with marginal credit.
What if my current payments are too high to take on more work?
If existing advance payments consume too much of your weekly cash flow, MCA relief, sometimes called reverse consolidation, can lower the daily or weekly amount you pay so more cash stays in the business. It eases cash flow rather than paying off or consolidating what you owe, which can free up enough room to fund and deliver a new contract.
When is the right time to apply?
Apply once the contract or purchase order is realistic, ideally while it is still being negotiated, not after you have spent your reserves and stalled. Having funding lined up lets you commit with confidence and negotiate deposit terms from strength. You do not have to accept anything until the deal is firm.
