In the same format as the alternative debtor book finance offering, businesses can generate a cash advance from fixed term service and product contracts, where there is a clear written monetary value attached to the contract.
This solution is not limited to any sector, but our funding partner will want to see the following from a contract to make it a fundable proposition:
The contract must be with a Ltd. Or LLP legal entity
There must be at least 6 months remaining on the contract duration with no exit option within this period
There must be a clear commitment in the contract to a fixed value in the funding period
No conditionality attached to the contract payment terms being honoured
The solution can be offered in conjunction with the alternative debtor book facility to increase the qualifying loan value or it can be offered as a separate solution as long as there is a minimum of £200,000 of committed contract value in one or more contracts.