How money moves in this industry
Staff are paid regularly even if client approvals and invoices take longer. A fast-growing firm can need cash to hire before new client revenue is collected.
A practical example
An engineering consultancy wins a year-long project and hires specialists before its first milestone is approved.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Hiring ahead of revenue
- Project mobilisation
- Office systems
- Acquisition or partner buyout
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Office fit-outs
- IT and specialist software
- Professional equipment
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- What is the contracted work pipeline?
- How concentrated is revenue among clients?
- How long do work-in-progress and debtors remain outstanding?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider professional indemnity, cyber, business interruption cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.