Finance Demanding Contract Cycles. Support Precision Production and Growth.

Manufacturing, inspection, testing and qualification can all take place before a customer accepts the work and pays. Payroll and overhead continue throughout, so cash can be tied up for months.

Precision machinery, tooling and test equipment are costly to buy, maintain and replace, and a new program can require equipment investment before the first shipment generates revenue.

Specialty materials and skilled technical labor are paid for early in the production cycle, well ahead of invoicing and collection.

A small number of prime contractors or programs often account for most of a supplier’s receivables, which affects how those receivables are reviewed and how much liquidity they can support.

Acceptance criteria, milestone billing and payment terms in customer contracts determine when an invoice becomes collectible, and not every receivable is eligible for borrowing.

Contracts and government requirements can limit how certain receivables are pledged or assigned, so financing against them requires careful, contract-specific review.

Qualifying machinery and tooling can support secured term financing. Ownership, appraised value and whether the collateral can be transferred all affect the structure.

We review the customer, the contract, billing and acceptance terms, and how the receivable has performed. Receivables that remain uncollected through a long acceptance cycle may be treated differently from routinely invoiced ones.

They can be considered, but contract and assignment terms and any government restrictions affect eligibility, so each customer and contract is reviewed individually.

They can. Provisions on assignment, liens, acceptance and payment can change which assets are eligible and how a facility is structured.

Typically recent financial statements, receivables aging, customer contracts and purchase orders, equipment lists, and existing debt and lien information. The exact list depends on the financing structure.