Winning a large contract or a single big order is a milestone, but it often comes with an awkward reality: you have to buy materials, pay staff and deliver the work long before the customer pays you. The very order that should grow your business can stretch your cash to breaking point.
The growth paradox
Bigger orders need more upfront cash than your normal trading. If most of your working capital is already committed, fulfilling a major order can leave nothing for day-to-day costs. Many otherwise successful businesses stall here, turning down work they could profitably deliver.
How a facility helps
- Funds the materials, labour and setup needed to deliver the order.
- Keeps the rest of the business running while resources are committed.
- Lets you say yes to opportunities that would otherwise be out of reach.
Check the numbers first
Make sure the order is genuinely profitable after the cost of finance, and that the customer is reliable. You repay over your agreed term at the rate shown in your offer, ideally once the order is invoiced and paid. A large order from a slow or risky payer needs extra caution.
Credicorp lends only to UK limited companies and LLPs for business purposes, never to individuals or sole traders, and we take no personal guarantees. As an exempt lender we sit outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply.
See also: Funding raw materials to fulfil a large order, How do we fund a large new contract? and Can business finance help bridge a short-term cashflow gap?.