Contract-Based Working Capital: Funding for Lumpy Cash Flow

You just won the contract. It's significant—maybe the biggest job your business has ever landed. Six figures, possibly seven. The client is solid. The work is exactly what you do. This contract could transform your year, maybe your business.

Back to Alternative Lending Solutions Guide

There's just one problem: payment terms.

Client pays: Upon completion (6 months away)
Or: Monthly in arrears (30 days after work delivered)
Or: Milestone-based (25% at each of four stages)
Or: Net 60 days after invoicing

Meanwhile, your costs are immediate and ongoing:

• Staff wages (weekly or fortnightly)
• Materials and supplies (payment on delivery or 7-day terms)
• Subcontractors (expect payment within 30 days)
• Equipment hire (weekly)
• Your own overhead (rent, insurance, utilities)

You need $150,000 over 6 months to deliver the contract.
You'll receive $400,000 when it's complete.
But you don't have $150,000 sitting in the bank.

Your bank says: "We don't lend against future revenue. Come back when you've been paid and we'll talk about a business loan."

But without funding, you can't deliver the contract. And if you can't deliver, you don't get paid. Classic catch-22.

This is exactly what contract-based working capital solves.

Let's break down how these facilities work, when they make sense, how to structure them, and how to access funding that lets you deliver profitable contracts without being held back by cash flow timing.

Understanding Contract-Based Cash Flow Challenges

This problem affects businesses across multiple industries. Let's understand why it's so common.

The Contract Cash Flow Mismatch

Normal small business cash flow:

Week 1: Deliver service → Invoice immediately → Paid within 7-30 days
Cash gap: 1-4 weeks

Contract-based business cash flow:

Month 1: Start work → Costs begin immediately
Month 2-5: Continue work → Costs accumulate
Month 6: Complete work → Invoice → Wait 30 days → Payment arrives
Cash gap: 7 months from start to payment

The problem magnifies with contract size:

$50k contract requiring $20k costs:

• You might manage from reserves or overdraft
• Small enough to bootstrap

$400k contract requiring $150k costs:

• Too large for reserves
• Exceeds most overdraft limits
• Bank won't lend against "future revenue"
• You're stuck

Industries Most Affected

Construction and trades:

• Building contracts with retention (5-10% held for 12+ months)
• Progress payments but gaps between claims
• Materials upfront, payment in arrears
• Subcontractor juggling

IT and software implementation:

• System deployment over 6-12 months
• Client pays on go-live, not during build
• Staff costs throughout development
• Hardware/licensing costs upfront

Government contracts:

• Payment typically 30-60 days after invoice
• Strict milestone-based payments
• Extensive documentation before payment release
• High-value contracts, slow payment cycles

Professional services:

• Large consulting engagements
• Payment on completion or monthly in arrears
• Staff costs in real-time
• Business development costs not billable

Manufacturing and supply:

• Large custom orders
• Raw materials purchased upfront
• Manufacturing over weeks/months
• Payment on delivery or after

Creative and production:

• Film/video production with payment on delivery
• Marketing campaigns with upfront costs
• Event production with post-event payment
• Content creation at scale

Why Traditional Business Finance Doesn't Work

Bank business loans require:

• Historical financial performance (but the contract is NEW revenue)
• Security against existing assets (but you need working capital, not asset lending)
• Long approval times (4-8 weeks, but the contract starts next week)
• Fixed repayment schedules (but your cash flow is irregular)

Invoice finance requires:

• Invoices already issued (but you haven't invoiced yet—work isn't done)
• Multiple invoices over time (but you might have one large contract)
• Debtor being invoiceable (but contract might have milestone or completion payment)

Overdrafts have:

• Low limits ($10k-50k typically)
• High interest rates (12-18%)
• Callable at bank's discretion (creates uncertainty)

None of these match the reality of contract-based cash flow.

How Contract-Based Working Capital Works

We structure facilities specifically for contract delivery funding.

The Basic Concept

We lend against the contracted revenue that will arrive when work is complete or at milestones.

Structure:

• You have: $400k signed contract with XYZ Corporation
• You need: $150k to deliver over 6 months
• We provide: $150k facility drawn progressively as needed
• Repayment: From contract revenue when client pays ($400k)

Security:

• Assignment of contract proceeds (client pays us directly)
• Or personal guarantee with assets
• Or both

Structure 1: Full Contract Assignment

What it is: We take assignment of the entire contract. Client pays us directly at completion/milestones. We take our repayment plus fees, forward balance to you.

How it works:

• Contract value: $400k
• Our facility: $150k
• Contract payment flow: Client → Luminate → You

At completion:

• Client pays $400k to Luminate
• We take: $150k principal + $18k interest/fees = $168k
• You receive: $232k

Best for:

• Single large contracts
• Completion-based payment
• Creditworthy clients (corporates, government)
• Clean exit (payment repays facility automatically)

Requirements:

• Client must agree to assignment (most do)
• Contract must be assignable (check terms)
• Client creditworthy (we're relying on them paying)

Advantages:

• Lower risk for us = better rates for you
• Clear repayment mechanism
• Client payment directly to us = certainty

Structure 2: Partial Assignment Or Milestone-Based

What it is: For contracts with milestone payments, we take assignment of specific milestones or a percentage of each payment.

How it works:

• Contract value: $600k paid in 4 milestones of $150k each
• Our facility: $200k drawn over first 3 milestones
• Assignment: 50% of each milestone payment to Luminate

Payment flow:

• Milestone 1: Client pays $150k → $75k to Luminate, $75k to you
• Milestone 2: Client pays $150k → $75k to Luminate, $75k to you
• Milestone 3: Client pays $150k → $75k to Luminate (facility now repaid), $75k to you
• Milestone 4: Client pays $150k → $150k to you

Best for:

• Milestone-based contracts
• Progressive delivery over time
• You need some cash flow during project
• Partial assignment gives you working capital throughout

Structure 3: Contract Security Without Assignment

What it is: We lend against the contract but without formal assignment. You invoice and collect payment normally, then repay us.

How it works:

• We hold contract as security
• You deliver work and invoice normally
• Client pays you directly
• You repay us from contract proceeds

Best for:

• Clients who won't agree to assignment
• Contracts where assignment is complex
• You prefer to maintain direct client relationship
• Multiple small contracts rather than one large one

Requirements:

• Strong trust/relationship with you
• May require personal guarantee or other security
• Regular reporting on contract progress and payment

Advantages:

• Client doesn't need to be involved
• Simpler administratively
• You control client relationship

Disadvantages:

• Higher risk for us = higher rates
• Requires more trust
• We rely on you forwarding payment

Structure 4: Revolving Credit Against Contract Pipeline

What it is: For businesses winning contracts regularly, a revolving facility based on your contract pipeline rather than single contracts.

How it works:

• Your typical quarterly contracts: $500k-800k
• Our facility: $200k revolving
• You draw: As needed for contract delivery
• You repay: As contracts pay out
• Revolves: Credit becomes available again for next contracts

Best for:

• Established businesses with regular contract wins
• Multiple concurrent contracts
• Ongoing working capital need
• Want flexibility rather than contract-by-contract funding

Example:

• Q1: Win 3 contracts ($180k, $220k, $160k)
• Draw: $180k from facility to deliver
• Q1 end: Contracts complete, clients pay
• Repay: $180k + interest
• Q2: Win 2 contracts ($240k, $190k)
• Draw: $200k from facility
• Continues...

Real-World Case Study: The IT Implementation Contract

The Business

• Name: Digital Solutions Ltd
• Industry: Business software implementation
• Ownership: Tom and Sarah (50/50 partners)
• Team: 4 permanent staff + contractors as needed
• Annual revenue: $800k-1.2M (variable based on contracts won)
• Specialty: ERP system implementations for mid-size manufacturers

The Opportunity

• Client: Manufacturing company with 120 staff
• Project: Full ERP system implementation
• Contract value: $480k
• Timeline: 8 months
• Payment terms: $120k deposit, $360k on go-live (month 8)

This was Digital Solutions' largest ever contract—worth 40-50% of their typical annual revenue.

The Challenge

Project costs over 8 months:

Cash flow:

• Month 1: Receive $120k deposit
• Months 2-7: $0 revenue, costs of ~$45k per month
• Month 8: Receive $360k final payment

The problem:

• $120k deposit covers first 2.5 months
• Months 3-8 require ~$250k from business reserves
• Digital Solutions had $80k in reserves
• Gap: $170k

The Bank's Response

Tom and Sarah approached their business bank (BNZ):

Their pitch: "We've won a $480k contract from a solid client. The contract is signed. We need $170k to cover costs while we deliver. We'll repay from the $360k final payment in 8 months."

Bank's response:

• "We can't lend against a contract not yet delivered"
• "If you want a business loan, we'd assess based on your last 3 years performance"
• "Your historical revenue is $800k-1.2M, so we'd likely approve $50k-80k maximum"
• "Approval would take 4-6 weeks"

Tom: "But we start work in 2 weeks. And $50k doesn't solve our problem. The contract IS the revenue—it's guaranteed as long as we deliver."

Bank: "That's our policy. Sorry."

The Luminate Solution

Application:

Tom and Sarah applied to Luminate with:

• Signed contract with client ($480k)
• Project plan and budget
• Client company information (established, profitable manufacturer)
• Digital Solutions' track record (successful implementations, good references)
• Personal financial statements (both owned homes with equity)

Our assessment:

What we saw:

• Solid contract with creditworthy client
• Experienced team (8 years doing this work)
• Realistic budget (detailed, line-itemed)
• Clear payment mechanism (client would pay $360k at go-live)
• Client agreed to assignment (directing payment to Luminate)

Risk analysis:

• Primary risk: Project delayed or fails to go-live
  • Mitigation: Tom and Sarah's track record was excellent (12 successful implementations, zero failures)
• Secondary risk: Client doesn't pay
  • Mitigation: Client was established business (25 years), reviewed their financials
• Exit: Clear (assignment meant client pays us directly)

Approval: 5 days

Structure:

• Facility: $170k
• Drawn: Progressively over months 3-8 as needed
• Term: 8 months (to project completion)
• Rate: 11.8% p.a.
• Security: Assignment of $360k final payment + personal guarantees
• Payment flow: Client pays final $360k → Luminate takes $170k principal + ~$8k interest + fees → Balance to Digital Solutions

The funding flow:

Month 1:

• Received $120k deposit from client
• Used for initial costs

Months 2-8:

Drew from Luminate facility as needed:

• Month 3: $25k
• Month 4: $30k
• Month 5: $30k
• Month 6: $30k
• Month 7: $30k
• Month 8: $25k
• Total drawn: $170k

Month 8 (Go-Live):

• Project successfully completed
• Client signed off
• Final payment $360k directed to Luminate
• Luminate took: $170k + $8,145 interest + $3,400 fees = $181,545
• Digital Solutions received: $178,455

The Outcome

Financial result:

• Contract revenue: $480k
• Project costs: $370k
• Luminate financing costs: $11,545
• Net profit: $98,455

ROI analysis:

• Without financing: Contract couldn't be delivered (profit: $0)
• With financing: Profit $98,455
• Financing cost as % of profit: 11.7%
• Financing cost as % of revenue: 2.4%

Strategic impact:

• Largest contract successfully delivered
• Client became repeat customer (2 more projects, $320k and $280k)
• Reputation boost (referenced this project to win 4 new clients)
• Confidence to bid on larger contracts

Tom's reflection:

"$11,545 felt like a lot when we saw the quote. But we looked at the alternative—turning down a $480k contract because we didn't have $170k in the bank. That's insane. The contract profit was $98k. Even after paying Luminate, we netted almost $87k profit. More importantly, successfully delivering that contract opened doors. Within 12 months, that one contract led to another $900k in work from referrals. Best $11k we ever spent."

Two years later:

• Digital Solutions' annual revenue: $1.8M (up 50%)
• They now have strong banking relationship (success bred access to capital)
• Still use Luminate occasionally for very large contracts
• Tom and Sarah both drew $120k+ salaries (up from $75k previously)

When Contract-Based Working Capital Makes Sense

✅ Contract Working Capital Is Right When:

You've won a solid contract

• Signed agreement with defined scope
• Clear payment terms and timeline
• Creditworthy client (corporate, government, established business)
• Value significantly larger than your normal jobs

Your costs exceed available capital

• Contract requires upfront investment
• Payment comes at completion or significantly after costs
• Gap between costs and payment is 60+ days
• Amount needed exceeds overdraft/credit cards

Contract is profitable

• Revenue exceeds costs + financing costs
• Margin sufficient to justify effort
• Strategic value (reputation, references, future work)

You can deliver

• Have skills/team/experience
• Realistic timeline and budget
• Track record of successful delivery
• No concerns about ability to complete

Client payment is reliable

• Established, creditworthy client
• Payment terms are standard for industry
• No history of payment disputes
• Client willing to cooperate with assignment (if needed)

⚠️ Reconsider Contract Working Capital When:

The contract is uncertain

• Unsigned or "subject to" clauses
• Scope poorly defined
• Client unknown or financially weak
• Payment terms vague or concerning

You're not confident in delivery

• First time doing this type of work
• Timeline seems unrealistic
• Haven't factored all costs
• Team stretched beyond capacity

Margins are too thin

• Financing costs eliminate profit
• No buffer for overruns
• Underbid to win contract
• Fixed price with uncertain costs

Alternative funding exists

• Client will pay deposit sufficient to cover costs
• You have reserves
• Can negotiate better payment terms
• Partner/investor will fund

The contract is problematic

• Client has reputation for disputes
• Scope creep likely
• Payment dependent on subjective approval
• Your gut says "this feels risky"

Costs and Terms for Contract-Based Working Capital

Interest Rates

Rate drivers:

• Client creditworthiness (most important)
• Whether you have assignment or not
• Your track record delivering similar contracts
• Contract term/duration
• Your business financial strength

Fee Structure

Example Cost Calculations

Scenario 1: IT Implementation (8 months)

• Contract value: $480k
• Facility: $170k
• Term: 8 months
• Rate: 11.8% p.a.
• Full assignment

Scenario 2: Construction Project (6 months)

• Contract value: $650k
• Facility: $220k
• Term: 6 months
• Rate: 12.5% p.a.
• Milestone-based, partial assignment

Is It Worth It?

ROI Analysis Framework:

• Contract revenue: $X
• Less: Direct costs: $Y
• Less: Financing costs: $Z
• Net profit: $X - $Y - $Z

Compare to:

• Without financing: $0 (couldn't deliver contract)
• With financing: $X - $Y - $Z

Decision: If ($X - $Y - $Z) > $0, financing makes sense

Example:

• Revenue: $480k
• Costs: $370k
• Financing: $19k
• Profit: $91k

Without financing:

• Can't deliver contract
• Profit: $0

The $19k in financing costs enabled $91k profit.

ROI on financing: 478% (earned $91k by spending $19k)

How to Apply for Contract-Based Working Capital

What Luminate Needs

Contract documentation:

• [ ] Signed contract or agreement
• [ ] Scope of work/deliverables
• [ ] Payment terms and schedule
• [ ] Any special conditions
• [ ] Client acceptance/sign-off requirements

Client information:

• [ ] Client name and entity details
• [ ] Client financial strength (if available)
• [ ] Industry and background
• [ ] Payment history (if repeat client)
• [ ] Credit check authorization

Your business information:

• [ ] Financial statements (last 2 years)
• [ ] Management accounts (current)
• [ ] Track record delivering similar work
• [ ] References from past clients
• [ ] Team capabilities and CVs

Project planning:

• [ ] Detailed budget and cost breakdown
• [ ] Timeline/project plan
• [ ] Resource allocation
• [ ] Risk assessment and mitigation
• [ ] Cash flow projections

Security (if applicable):

• [ ] Assignment clause review (legal)
• [ ] Personal financial statements (if PG required)
• [ ] Property valuations (if securing against property)
• [ ] Other asset details

Application Timeline

Total timeline: 18-21 days from inquiry to first funds

For urgent situations: Can compress to 10-14 days if:

• Contract is straightforward
• Client cooperative and creditworthy
• Your documentation complete
• Simple security structure

Tips For Faster Approval

1. Have contract fully executed

"Almost signed" doesn't work. We need both parties' signatures.

2. Client agrees to assignment upfront

If we need assignment, get client's preliminary agreement before applying. Many clients are happy to cooperate if approached professionally.

3. Detailed budget, not estimates

• ❌ "It'll cost about $200k" → Too vague
• ✅ "Labor $120k, materials $45k, subcontractors $30k, contingency $5k" → Perfect

4. Demonstrate delivery capability

• Past projects of similar size/scope
• Team CVs showing expertise
• References from previous clients
• Realistic timelines

5. Know your client's financial position

If you can provide their financial statements or credit report, great. If not, at least know their industry, years operating, reputation.

Back to Alternative Lending Solutions Guide

Managing Contract Delivery and Repayment

Drawdown Strategy

Don't draw the full facility on day one. Draw as needed:

Progressive drawdown example:

• Month 1: Draw $30k (initial costs)
• Month 2: Draw $25k (ramping up)
• Month 3: Draw $35k (peak activity)
• Month 4: Draw $30k
• Month 5: Draw $25k
• Month 6: Draw $25k (final push)

Why progressive is better:

• Pay interest only on amount drawn
• Keep unutilized funds available for unexpected needs
• Shows discipline and good financial management

Reporting Requirements

We'll typically require:

Monthly:

• Project progress report
• Current costs vs. budget
• Any timeline changes
• Invoice copies (if milestone payments)

This isn't to micro-manage—it's to:

• Identify problems early (so we can help)
• Confirm project on track
• Manage our risk
• Build trust for future facilities

What If The Project Delays?

Common causes:

• Client requests scope changes
• Technical challenges take longer
• Resource availability issues
• External dependencies (approvals, weather, etc.)

Our approach:

Minor delays (2-4 weeks):

• Usually no issue
• Interest continues accruing
• Keep us informed

Moderate delays (1-2 months):

• Extension fee: 1% of balance
• Review updated timeline
• Confirm client still committed
• May need updated assignment dates

Major delays (3+ months):

• Full reassessment required
• Extension fee: 1-2%
• May need to restructure
• Client communication essential

Best practice: Tell us early. "This might delay 6 weeks" is much better than "We're now 6 weeks overdue and didn't tell you."

If The Contract Fails

Worst case: Project cancelled, client doesn't pay, you can't complete.

What happens:

• We work with you to understand why
• Assess what can be salvaged
• Options include:
  • Negotiate partial payment from client
  • Sue client for breach (we may fund legal action)
  • Restructure debt to longer-term repayment
  • Call on personal guarantees/security if needed

Reality: This is rare with good client vetting. In 5+ years funding contract-based work, we've had very few complete failures. Most "problems" are delays, not cancellations.

Frequently Asked Questions

What If The Client Won't Agree To Assignment?

Not ideal but not a deal-breaker. Options:

1. Partial assignment: Assign a percentage (e.g., client pays you 70%, us 30% directly)

2. Trust-based: No assignment, you collect and repay us (requires personal guarantee or other security)

3. Explain benefits to client:

• "Our lender needs assignment to offer us favorable terms"
• "It's administrative only—doesn't affect our relationship"
• "We've used this structure successfully before"

Most professional clients understand and agree.

Can You Fund Multiple Concurrent Contracts?

Yes! If you regularly win contracts, a revolving facility might work:

• Approved limit: $300k
• Draw against Contract A: $120k
• Contract A pays, you repay: $120k available again
• Draw against Contract B: $150k
• And so on...

Better for established businesses with consistent contract pipeline.

What If We Bid Multiple Contracts And Aren't Sure Which We'll Win?

Apply once you've won and contract is signed. We can't fund "maybe" contracts.

But if you regularly bid and win, we can pre-approve a facility. Then when you win, it's available immediately.

Do You Fund Startups Or First-Time Contractors?

Challenging but possible if:

• Principals have relevant experience (even if company is new)
• The contract is very solid (government, major corporate)
• You bring meaningful equity/deposit
• Margin is good (room for error)

First-time is always higher risk, so expect:

• Higher rates
• Lower LVR (we'll fund less % of costs)
• More security required (personal guarantees)

What Industries Can You Fund?

Most contract-based businesses:

✅ Construction and trades
✅ IT and software
✅ Professional services (consulting, engineering)
✅ Manufacturing and production
✅ Creative (film, marketing, events)
✅ Government contractors
✅ Corporate service providers

Industries we struggle with:

❌ Retail/hospitality (different cash flow model)
❌ Purely speculative work (no signed contract)
❌ Illegal or ethically problematic activities

How Much Of The Contract Value Will You Fund?

Typically 40-70% of project costs, depending on:

Higher % (60-70%):

• Strong client
• Good track record
• Full assignment
• Detailed budget

Lower % (40-50%):

• Weaker client
• Limited track record
• No assignment
• Less detailed planning

We rarely fund 100% of costs—you need skin in the game.

Can I Use The Facility For Business Development Costs?

Generally no. The facility is for delivering the specific contract, not:

• Bidding other contracts
• General overhead not related to this project
• Owner salaries (unless directly working on project)
• Non-project expenses

If you need working capital for business development, that's a different conversation (general working capital facility).

What If The Client Pays Early?

Excellent! You repay us early. Usually no penalty for early repayment—we want you to get paid.

You save interest for the months you don't need the facility.

Do We Need To Use Our Own Accountants/Solicitors?

Yes, for your interests. We'll use ours for our interests.

For assignment documents, there's coordination between solicitors. We handle most of this—you don't need to manage it.

Cost: Budget $1,500-3,000 in legal fees (your solicitor) for facility setup and assignment documentation.

Alternatives to Contract-Based Financing

Before committing, consider if these might work:

Option 1: Negotiate Better Payment Terms

Ask the client for:

• Larger deposit (30-50% vs. 10-20%)
• Monthly progress payments
• Shorter payment terms (Net 15 instead of Net 60)
• Payment for materials upfront (even if labor in arrears)

Many clients will negotiate if:

• You're upfront: "We're a smaller business and need better cash flow"
• You offer value: "10% discount if you pay 50% upfront"
• You're professional about it

Worth trying before borrowing.

Option 2: Project Finance From Supplier

Some suppliers offer:

• Extended payment terms for materials
• Trade credit for established customers
• Consignment (pay when you invoice client)

Example: Electrical wholesaler gives you 60-day terms on $40k of materials. That's $40k you don't need to borrow.

Option 3: Subcontractor Arrangements

Structure work differently:

• Use subcontractors who invoice you monthly in arrears
• They carry some cash flow burden
• You pay them when you get paid

Trade-off: Lower margin (subcontractors charge more than employees) but better cash flow.

Option 4: Partner/Investor For Specific Contract

Bring in partner for this contract:

• They fund delivery
• You split profit (e.g., 60/40)
• One-off arrangement, not ongoing partnership

Better than debt if:

• You have zero capital
• Contract is very risky
• You want to share risk

Worse than debt if:

• You have to give up significant profit share
• Lose control of delivery
• Partner complicates client relationship

Option 5: Don't Take The Contract

Sometimes the right answer is:

• Contract too large for your capacity
• Client too risky
• Margin too thin after financing
• You're not ready for this size

Better to pass than fail to deliver.

Ready to Fund Your Contract Delivery?

You've won the contract. You have the skills. You just need the working capital to bridge the gap between delivery costs and client payment.

Contract-based working capital makes sense when:

• ✅ You have a solid signed contract with creditworthy client
• ✅ Payment comes at completion or significantly after costs
• ✅ Your costs exceed available capital
• ✅ The contract is profitable even after financing costs
• ✅ You can deliver successfully

Don't let cash flow timing prevent you from delivering profitable work. Contract-based working capital exists specifically to solve this problem—funding the gap between when you incur costs and when your client pays.

Whether you need $50k or $500k, whether it's a single large contract or an ongoing pipeline of projects, understanding your funding options is the first step toward growing your business without cash flow constraints.

Get Expert Assessment

Every contract situation is unique. The right funding structure depends on your specific circumstances:

• Your contract terms and client
• Your delivery capability and track record
• The security you can provide
• Your timeline and urgency
• The complexity of the assignment process

Luminate Financial Group specializes in contract-based working capital for New Zealand businesses. We understand the cash flow challenges of contract work because we've structured hundreds of these facilities across construction, IT, professional services, manufacturing, and creative industries.

We can help you:

• Assess whether contract financing makes sense for your situation
• Structure the facility to match your contract terms
• Navigate client assignment agreements
• Get approval quickly (often within 5-7 days)
• Draw funds progressively as you need them
• Successfully deliver without cash flow stress

Next Steps

1. Review your contract

Look at your payment terms, timeline, and total costs. Calculate the gap between when you'll spend money and when you'll receive payment.

2. Calculate the numbers

Use the ROI framework:

• Contract revenue: $__
• Less delivery costs: $__
• Less estimated financing costs (10-12% of facility): $__
• Net profit: $__

If the net profit is positive and meaningful, financing makes sense.

3. Gather your documentation

Before you call, have ready:

• Signed contract
• Project budget breakdown
• Client information
• Your business financials
• Timeline/project plan

4. Contact Luminate

We'll discuss your contract, assess feasibility, and provide clear guidance on structure, costs, and timeline.

Contact Luminate Financial Group

Phone: 0800 333 400
Email: askus@luminate.co.nz
Website: luminate.co.nz

Business Hours: Monday-Friday, 8:30am-5:00pm NZST

When you call or email, mention you're inquiring about contract-based working capital. We'll arrange a conversation with one of our commercial lending specialists who understands contract delivery financing.

Final Thoughts

The difference between businesses that grow and businesses that stay small often comes down to one thing: the ability to take on larger, more profitable work.

Contract-based working capital removes the cash flow barrier that prevents capable businesses from delivering their biggest opportunities. It's not about taking on debt for the sake of it—it's about funding profitable work that you've already won but can't deliver without bridging the payment timing gap.

Tom from Digital Solutions put it well: "We had the skills, the team, and the contract. We just needed someone who understood that a signed $480k contract with a solid client IS an asset, even if the bank doesn't see it that way. Luminate got it immediately."

If you've won a significant contract and need working capital to deliver it, don't let payment timing hold you back. Get expert assessment of your options and clear direction forward.

The contract is waiting. Let's help you deliver it.

Back to Alternative Lending Solutions Guide

About Luminate Financial Group

Luminate Financial Group specializes in non-bank business lending across New Zealand. We fund businesses that banks often can't or won't—not because these businesses are risky, but because they don't fit traditional banking criteria. Contract-based working capital is one of our core specialties, alongside equipment finance, invoice finance, business acquisition loans, and growth capital.

We're not a bank. We're specialists in understanding business cash flow, particularly the irregular, lumpy, and milestone-based cash flow that characterizes contract work. We structure facilities that match how your business actually operates, not how banks think it should operate.

Learn more: luminate.co.nz