Where the pressure develops
Payroll, contractors, software and project-delivery costs continue while invoices move through customer approval and payment processes.
Sector focus
Cover payroll and delivery costs while clients pay on agreed terms.
Consultancies, agencies and other professional-services firms often pay salaries and project costs monthly while corporate clients settle invoices on 30, 45 or 60-day terms.
What helps the assessment
Signed contracts, statements of work, accepted deliverables, invoices, debtor ageing, customer terms and management information. Clear information reduces avoidable delays and makes an initial fit discussion more useful.
What the facility must achieve
A confidential ongoing facility may suit regular billing, while selective funding may fit occasional larger projects. The invoice must represent completed, undisputed work.
Sector-specific discussion
Bring the customer terms, expected funding cycle, supporting contracts and any existing finance arrangements to the call.
Common questions
Questions about professional services funding
Can consultancy invoices be funded?
Potentially, where work is completed, the invoice is valid and undisputed, and the customer and contract terms are acceptable.
Is selective invoice finance suitable for project businesses?
It may be useful for occasional large invoices where a full ongoing facility is unnecessary, subject to the invoice and debtor meeting requirements.
Can work in progress be funded through invoice finance?
Invoice finance generally relies on completed work and eligible invoices. Unbilled work in progress usually needs separate consideration.
Sector funding detail
When professional services funding is likely to work.
The commercial pressure is simple: work is delivered before invoices are settled. The right facility depends on evidence, debtor quality and how repeatable the gap is. Businesses adding staff or larger client mandates can also use our start-up to scale-up invoice finance guide.
What lenders want to see
- clients are businesses, public bodies or established organisations
- invoices are valid and usually paid but not quickly
- cash is needed for payroll, contractors or growth
Documents that speed review
- engagement letters or contracts
- recent invoices
- aged debtor report
- client concentration summary
Products to consider
- Invoice finance
- Selective invoice finance
- Bad-debt protection
Sector underwriting
What the funding assessment needs to understand.
Sector familiarity is useful only when it translates into the right evidence, eligibility rules and risk controls.
Cash-flow pattern
Staff and contractor costs before project or retainer invoices are paid
Evidence to prepare
Engagement letters, milestone acceptance, timesheets, invoices, debtor ledger and recurring billing history.
Common blockers
Work in progress, contingent fees, unaccepted milestones and invoices dependent on future performance.
Practical funding fit
Check eligibility Structure follows the point at which value becomes evidenced.
A completed milestone with client acceptance is more fundable than an estimate for work still in progress.