The first payment is provided as soon as the work is completed and the invoice is delivered to your client.
The first payment is usually for 80% of the invoice.
The transaction is liquidated once your end customer pays their invoice on their regular schedule.
Most financing lines can be deployed quickly – in a week or so.
This can put you in a difficult position, especially if your company does not have the resources to offer 30 day terms.
You can take the contract, and risk cash flow problems.
Most lending institutions only provide financial support to companies who meet very conservative guidelines.
On the other hand, venture capitalists and private investors always demand equity and participation in the management of your company. However, many of the cash flow problems that small companies run into are due to how corporate invoices are paid.