Partner program
Working Capital for a Client Who Just Landed a Big Contract
The contract is signed and the client is thrilled. Then the math lands: materials, crew and deposits go out in weeks one to six, and the first progress payment arrives in week eight at best. Here is how that gap is funded, which product fits which contract, and how to get the file reviewed in a day.
How Does a Business Fund the Start of a Big Contract?
With funding sized to the gap between mobilization costs and the first payment: a working capital bridge for speed, a business line of credit for contracts with several draws, or accounts receivable financing once invoices are issued. All are placed through RAN Funding’s lender network, and the contract itself is part of the file. Consultants and fractional CFOs refer the client through RAN Funding’s partner program; one dedicated specialist reviews the file, and you keep the client relationship.
The Gap a Big Contract Creates
A contract worth more than a quarter of annual revenue is good news with a cash-flow catch. Materials, subcontractors, deposits, insurance and added payroll are paid before the first invoice goes out, and net-30 or net-60 terms push the first receipt further still. Retainage on construction work holds back 5 to 10 per cent until completion.
In the Federal Reserve Banks’ 2024 Small Business Credit Survey, fewer than half of employer firms that applied for financing received the full amount they sought.1 A client who applies after missing a mobilization deadline is in a weaker spot than the same client the week the contract was signed, with the award letter in hand.
Map the Cash Curve First
Before any product is chosen, lay out the contract week by week: costs out, payments in, and the lowest point of the cumulative line. That trough is the funding need. The shape of the curve picks the product.
| Contract shape | Trough | Product that fits |
|---|---|---|
| One mobilization, one payment at completion | Deep, early | Working capital bridge, sized to the trough |
| Several phases, progress payments | Repeated, moderate | Business line of credit: draw per phase, repay per payment |
| Net-30 to net-90 invoicing after delivery | Builds after invoicing | Accounts receivable financing on the invoices |
| Equipment needed to perform the work | Front-loaded, one asset | Equipment financing; the equipment is the collateral |
Most large contracts use two of these. See bridge funding for contracts for the owner-side view.
What the File Needs
- 1+ year in business and $20,000+ in average monthly revenue.
- A business bank account with active deposits.
- The 3 most recent business bank statements (4 in NY, CA or VA), complete.
- A need of $10,000 to $500,000+ in working capital, up to $2 million on some products.
- The signed contract or award letter, with the payment schedule and terms.
- A cost schedule by week for the first phase.
- Any open loans or advances, with balances.
The contract is the strongest document in the file. A funder reading a signed award with a payment schedule is sizing a bridge, not guessing at a shortfall.
Checking the Cost Against the Margin
Funding costs money and the contract has a margin. The check is simple: the cost of carrying the trough until the first payment has to sit comfortably inside the contract’s gross margin. If it does, the funding is what makes the contract possible. If it eats most of the margin, the client should renegotiate terms, ask for a mobilization payment, or take a smaller first phase.
Model the cost in dollars, not rates. Factor rate vs APR explains how offers are stated.
How the Referral Works, Step by Step
RAN Funding is a broker, not a lender. One application for our lender network and one dedicated specialist. You make the introduction; we handle the funding process.
- Sign up on the partner page. Two minutes. Select Fractional CFO or Business Consultant. We call within one business day to walk through the partner agreement.
- Make the introduction. The owner’s name and number, and a heads-up that we will be calling. No licensing is needed for a basic referral introduction.
- The specialist reviews the file and calls the owner within one business day. If you want to be on the call, say so.
- The owner sees the options the file supports, with every term explained before anything is signed.
- The deal funds and you are paid the referral commission in the partner agreement. Renewals on your referrals pay you too.
Your client stays your client. RAN Funding contacts them only about the funding they asked for. No cross-selling, no marketing lists.
How to Raise It With the Client
- “Congratulations. Now show me the payment schedule, because that is where the plan lives or dies.”
- “Weeks one to seven are the problem. Let me have someone size a bridge against the award letter.”
- “If this contract has four phases, a line of credit set up once covers all four.”
What to Keep in Mind
Get the client’s agreement before sharing anything. Do not describe yourself as a lender, and do not promise an approval. Nothing is guaranteed until underwriting reviews the file.
Disclosure rules vary by state. California, for example, requires a provider extending a specific commercial financing offer to give the recipient disclosures at the time of the offer. MCA disclosure laws by state is a starting point, not legal advice.
How to Start
Go to the RAN Funding partner program page and fill in the short form. Say so if you have a client who needs funding now.
For the program as it applies to your profession, see the guide for consultants and fractional CFOs. You can also call 1-877-522-6045, Monday to Friday, 9am to 6pm ET.
Common Questions
Can a business get funding against a signed contract?
Yes. A signed contract with a payment schedule is a strong part of the file. A working capital bridge covers mobilization, a line of credit covers phased contracts, and accounts receivable financing covers invoices once they are issued.
How much can a client get for a big contract?
The funding is sized to the trough in the cash curve, not the contract value. Working capital runs $10,000 to $500,000+, lines of credit up to $2 million, and receivables financing up to $5 million on open invoices. Each offer depends on the file.
What is retainage and does it change the funding?
Retainage is the 5 to 10 per cent a customer holds back until completion. It extends the gap, so the trough is deeper and later than the invoice schedule suggests. Include it in the cash curve.
Who qualifies for funding?
Best-fit clients have 1+ year in business, $20,000+ in average monthly revenue, a business bank account with active deposits and a need for $10,000 to $500,000+ in working capital, up to $2 million on some products. This is business financing only, for established businesses. Not every file can be placed.
Do I need a license to refer a client?
No licensing is needed for a basic referral introduction. You give the owner’s name and number; RAN Funding handles the funding process.
How am I paid?
A referral commission set in the written partner agreement, paid when the deal funds. Renewals on your referrals pay you as well. Nothing is paid on a file that does not fund.
Sources
- 2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey — Federal Reserve Banks
- California Financing Law: Commercial Financing Disclosures — California Department of Financial Protection and Innovation
Have a Client Who Just Won a Contract?
Sign up in two minutes. We call within one business day and review the file.