2 min read
Why a big order strains cash
Fulfilling a large order means outgoings up front and income later — a stretch of the working-capital cycle. The bigger the order, the bigger the gap, even though the order is profitable.
How to fund it
A short working-capital facility covers the up-front cost and is repaid when the customer pays. Invoice finance can release the value once you have invoiced. Check the margin comfortably covers the finance cost.
What it means for you
Do not turn down growth for want of timing.
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Frequently asked questions
Should I borrow to fulfil an order?
Yes, if the order is confirmed and the margin comfortably covers the cost of finance. It funds the gap between paying for the work and being paid for it.
What if the customer might not pay?
Assess the customer's reliability first. For a solid customer, financing the order is low risk; for an unproven one, be cautious and consider credit checks or staged payment terms.
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Read →Funding for UK limited companies
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