Contract Financing is the advance of ready money on current job contracts so that a small business can have funds to operate on a day-to-day basis before the payments on the work contract actually take effect. A small business usually looks for contract financing when they go into a contract of greater volume than previous arrangements and need quick capital in order to fulfill the contract and manage additional business obligations. Contract financing works to aid small businesses that need an advance on their contracted work before a service is completed, but not necessarily prior to all work on the product is finished.
At Mission Valley Capital we have very distinctive contract finance program is far less costly than providing equity and provides for a more sensible solution for businesses that meet the criteria. Our methodology allows you to acquire maximum cash from your contract by monetizing your contract intelligently. We custom tailor each transaction to our client’s needs and maximize what is available to you. This enables you to access the money you need from your sales right away, instead of having to wait to receive payment over the life of the agreement. Having cash in hand also allows a business to reach its goals without giving up valuable equity in the company. A loan with fair terms can be paid back over time but giving up equity has a far greater impact down the road especially the more successful a product might become. With orders in place it is a loan used to fulfill current obligations before the payer can fully realize the total amount. The goal is to allow you to finish your orders without risking that which has already been spent.
- Minimum deal size $1,000,000
- Customer investment grade or near investment
- Service Contract must have a component of equipment
- This program is not for ongoing service maintenance contracts
- Great for startup or emerging growing companies
Industries where this products works best:
- Any Break Through Technology or Process
- Computer System/Software Development
- Digital Broadcasting
- Waste Management
- Water Purification
- Food Processing
At Mission Valley Capital understanding your needs is our top priority. Call to speak with one of the partners to see how a contract financing loan can give your business the cash it needs today.