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Final Word

If you have a signed contract from a reputable client without the funds to start work, then contract financing is a very attractive solution. That’s especially true if a bad credit score makes other loan types cost-prohibitive.

But contract financing only works when there are clear details within your contract. As you negotiate a contract, make sure to get set milestones and payment terms built into the contract. 
 

About the Authors

Sarah Sharkey

Written by: Sarah Sharkey

Personal Finance Writer

Sarah Sharkey is a personal finance writer who enjoys helping people make better financial decisions. Sarah enjoys traveling, hiking and reading when she is not writing.

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Kal Salem

Reviewed by: Kal Salem

MA Accounting - Arizona State University

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA Services LLC

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Joe Templin

Fact checked by: Joe Templin

Charted Financial Consultant - CAP

Joe Templin is a Charted Financial Consultant (ChFC), MCEC, CEC, CLU and CAP with well over three decades consulting, coaching, and teaching. He's an author of the Amazon Kindle #1 New Release "Every Day Excellence" and host of The Human Kaizen Podcast.

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