What Is Contract Financing?

Also known as contract funding or contract finance, contract financing is a financial solution that provides businesses with the capital needed to fulfill contracts. This type of financing is especially useful for companies that have secured contracts but lack the working capital to deliver on their obligations.:

How Does Contract Financing Work?

Securing a Contract:

A business secures a contract with a client, which could be a large corporation, or any other customer.

Application for Financing:

The business applies for contract financing from Orpheus, providing details of the contract, including the terms, payment schedules, and the client's creditworthiness.

Assignment Payment:

The business will assign the payment of the contract from the client to Orpheus as the Financing Company, usually within agreed-upon terms.

Assessment and Approval:

We will assess the contract validity, the business's capability to fulfill the contract, and the client's reliability. Once approved, we provide a portion of the contract value as an advance.

Utilizing Funds:

The business uses the advanced funds to purchase materials, hire labor, or cover other expenses necessary to complete the contract.