← Commercial Finance Answers

New contracts & business growth

Can a subcontractor finance equipment for work awarded by a main contractor?

Potentially. The lender will assess the subcontract terms, business and asset rather than relying only on the main contractor’s reputation.

The practical answer

Potentially. The lender will assess the subcontract terms, business and asset rather than relying only on the main contractor’s reputation.

Provide the subcontract or order, scope, rates, expected volumes, payment timetable and any retention. Show the company’s existing commitments and the cash required to mobilise.

If the arrangement can be ended at short notice, explain alternative work for the asset. Funding remains subject to assessment and is not a guarantee that the main contractor will keep providing work.

Important

Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.

What should I do next?

Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.

Read: Equipment finance for a new contract →