Answer

I run a project-based business with lumpy milestone payments — how do I smooth cash flow?

Milestone payments create feast-and-famine cash flow; a facility smooths the gaps between milestones so payroll and suppliers are steady even when billing isn't.

2 min read

Lumpy milestonesFeast and famine
Smooth the gapsFacility
Steady outgoingsEven when billing isn't

The milestone rhythm

Project work often pays in chunks at milestones, but your costs — wages, suppliers — run steadily throughout. Between milestones, cash can run tight even on a profitable project.

Smooth the cash flow

A working-capital facility bridges the gaps between milestone payments so steady outgoings are covered when billing is lumpy. Draw down between milestones and repay as each is paid.

Bill milestones tightly

Structure milestones to bill as early and often as the contract allows, and invoice the moment each is hit. Combined with a facility, that keeps cash flow steady across the project.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

How do I manage cash flow with milestone payments?

A working-capital facility bridges the gaps between milestones so steady costs are covered when billing is lumpy. Bill each milestone as early as the contract allows to shorten the gaps.

Why does milestone billing strain cash flow?

Because payments arrive in chunks while costs run steadily throughout. Between milestones even a profitable project can run tight — a facility smooths those gaps.

Funding for UK limited companies

Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.