2 min read
Contracted income is a plus
A signed, recurring contract gives a lender something predictable to lend against — more reliable than lumpy ad-hoc sales. Evidenced, contracted turnover supports affordability well.
The concentration question
The flip side is reliance on one source. A lender asks how much term the contract has left, how it has renewed before, and how quickly you could replace it. A long-dated contract with a strong counterparty largely answers this.
Applying
Bring the contract and its history, then apply online.
Frequently asked questions
Is one recurring contract enough to borrow against?
It can be, if it is solid and has term remaining. Contracted income is strong evidence, though a lender weighs the risk of relying on a single source.
What makes single-contract income more fundable?
Remaining contract term, a track record of renewal, a creditworthy counterparty, and evidence you could replace the income if needed. These offset the concentration risk.
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Read →Funding for UK limited companies
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