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Short-term finance to fund a new contract or order win
Winning a new contract or a large order is good news that can still create a cash squeeze — materials, staff or subcontractors often have to be paid for before the client pays you. A one-off short-term loan from Credit Corp funds that gap.
New contract finance
UK limited companies and LLPs · No personal guarantee · Decisions most working days
Apply now Price your borrowing
One-off business loan · £50–£500 · 14–84 days · 0.25% per day simple interest + £5 fee · cost capped at 100%.
Why winning new work can strain cashflow before it improves it
A new client or a bigger order than usual is exactly the kind of growth most businesses want — but it often means buying materials, hiring subcontractors or taking on extra staff hours before the first milestone payment lands. The bigger and better the win, the bigger the upfront cash gap can be, at the moment your existing working capital is already committed to normal trading.
- A new client may want to see delivery before agreeing to pay a deposit
- Materials, subcontractors or extra staff hours often have to be committed before any payment is received
- A single large order can be bigger than your normal working capital is built to absorb
- Turning down or under-resourcing the win to protect cashflow risks the relationship and the reputation it could bring
How funding a new contract works
- Size the loan to the upfront costApply for a one-off short-term business loan matched to the specific upfront cost of delivering the contract — not the full contract value.
- Deliver on time and to specUse the funds to cover materials, labour or subcontractor costs so the new work is delivered properly and on schedule.
- Repay from the contract's first paymentClear the loan over a fixed short term timed to when the client's first payment or milestone is due.
- Settle early if payment lands soonerInterest is simple and non-compounding, so an early client payment lets you clear the loan for less.
What funding a new contract could cost
Say you need £500 upfront to deliver a new order and clear it over 49 days once the client pays. With 0.25% per day simple interest and a £5 one-off fee, here is the whole cost.
- Amount bridged
- £500.00
- Term
- 49 days
- One-off establishment fee
- £5
- Interest (simple, on principal)
- £61.25
- Total to repay
- £566.25
- Roughly per week
- £80.89 over 7 payments
Illustration only, not a quote. Use the calculator to price your own amount and term.
Short-term borrowing is expensive relative to bank lending — only borrow when the cost is less than the gap it closes. Total cost is capped at 100% of the amount borrowed, so you will never repay more than double. Lending is to the company; there is no personal guarantee.
Protecting the win itself
Where you can, negotiate a deposit or staged payments on any new contract of meaningful size — it reduces how much upfront funding you need at all. If the client will not agree to staged payment, make sure the delivery timeline and the loan term are realistically matched.
- Ask for a deposit or staged milestone payments on larger new contracts as standard practice
- Get delivery costs and timelines confirmed in writing before committing spend
- Match your loan term to the client's actual payment terms, with some margin
- Keep a record of what a similar contract actually cost to deliver, to price the next one better
Who can apply
- UK limited company or LLP (we lend to the body corporate — not to sole traders or individuals).
- At least 6 months trading.
- A current UK business bank account.
- A director identity check (you act as the company's authorised representative, not as a personal borrower).
- No personal guarantee required — the obligation sits with the company.
New contract finance — questions
Can I get finance to deliver on a contract I have already won?
Yes. A Credit Corp short-term business loan can fund the upfront cost of delivering a new contract or order — materials, labour or subcontractor costs — repaid once the client pays.
Does the size of the contract affect eligibility?
The loan itself is £50 to £500 (or up to £2,000 via Credicorp Slice for a single bill), sized to the upfront cost of delivery rather than the full contract value — eligibility depends on your company's standing, not the contract size.
What does it cost to fund a new contract?
Interest is 0.25% per day on the principal (simple, not compounding), plus a £5 one-off fee, capped at 100% of the amount borrowed. See the worked example above, or use the calculator for your own figure.
How quickly can I get the funds to start delivering?
Most decisions come back the same working day, so you can typically get moving on a new contract without delay.
Fund your new contract
See exactly what a Credit Corp business loan would cost against the cost of delivering your new contract, then apply when it fits.
Credit Corp lends to UK limited companies and LLPs under the body-corporate exemption (Articles 60B and 60L of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001). This is not consumer lending. The Financial Ombudsman Service and Financial Services Compensation Scheme do not apply. Full details: regulatory status and responsible lending policy.