For project-led and contract businesses, income can stop and start with the work itself. One contract wraps up, the final invoice is paid, and there is a pause before the next project mobilises and starts generating cash. During that pause, your overheads carry on regardless.
Why the gap appears
New contracts usually cost money before they pay. There is mobilisation, hiring or retaining staff, buying materials and setting up, all before the first milestone invoice is raised, let alone paid. Combine that with a lull between projects and you have a clear, time-limited cashflow gap.
How a facility helps
- Keeps your team and overheads funded between projects so you are ready to start.
- Funds the upfront mobilisation costs of the next contract.
- Stops you having to win work at any price just to keep cash moving.
Size it to the gap
This is a textbook short-term need: defined start, defined end, clear repayment source. Size the finance to the length of the gap and the mobilisation cost, and repay over your agreed term at the rate shown in your offer as the new contract starts billing.
Credicorp lends only to UK limited companies and LLPs for business purposes. We do not lend to individuals or sole traders and take no personal guarantees from directors. As an exempt lender we are outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply.
See also: Bridging the gap between one contract ending and the next, Can business finance help bridge a short-term cashflow gap? and Managing cashflow around a Corporation Tax or VAT bill.