Taking on a significantly large project, perhaps a contract comparatively bigger than one you’re used to accommodating, can be a good approach to take your business to the next level. Smart business owners know that mobilization financing can be an effective solution for addressing the human and material resource mobilization that needs to be carried out. As an institution with a private source of funds designated for commercial lending and project financing, we can certainly support you in such an endeavor.
What Is Mobilization Financing
Commercial lending companies offer various financing programs and such services often overlap and can be combined in ways that best suit the capital requirements of the client. Mobilization financing shares similar characteristics with purchase order financing and uses the concept of factoring. Unlike most types of debt financing, specific goods are not used for security. It is actually the contract or the invoices that are monetized to come up with the working capital.
Factoring usually involves purchasing invoices at a discounted rate. In this manner, the acquired capital doesn’t come out as debt and therefore has no negative impact on the company’s balance sheet. It follows a different set of criteria and approval process than typical bank loans. Mobilization financing can thus be set up much faster and have more flexible terms.
Where Is Mobilization Financing Needed
This method of obtaining funding is most suitable when the project requires moving a lot of personnel and equipment from one location to another. There are many possible expenses, such as transportation of personnel and equipment, personnel board and lodging, and equipment installation. You already know how critical accomplishing deliverables can be to the smooth execution of a project. With adequate and immediately available cash, such activities will be completed on time.
Mobilizing a lot of human and material resources is common practice in the construction industry. But there are actually numerous types of businesses from other sectors that may need mobilization financing. Our extensive experience in commercial lending gives us the ability to understand the different capital requirements found in each industry. This expertise, as well as our large funding capability, is what you can gain through our mobilization financing services.