Professional Services
Business Funding for Consulting Firms
Consulting firms sell time, and time is both the product and the constraint. Growth means hiring consultants before the engagements that will pay for them are sold. Most consulting revenue comes on project-based contracts with net-30 or net-60 payment terms, creating a gap between when your consultants work and when the client pays. Building bench strength to win larger engagements requires capital that the firm's cash flow alone usually cannot support.
Common Uses
What Consulting Firms Use Funding For
- Hire senior consultants and analysts to build capacity for larger engagements
- Cover payroll during the gap between project starts and client payments
- Invest in proprietary methodologies, training programs, and certification for staff
- Fund business development efforts including conferences, proposals, and thought leadership
Funding Options
Best Funding Types for Consulting Firms
Business Line of Credit
A revolving line matches the project-based nature of consulting. Draw funds when you are ramping up a new engagement and repay when the client payments arrive. This is the most flexible tool for managing the uneven cash flow of consulting work.
Invoice Factoring
Factor your outstanding client invoices to get cash within days instead of waiting 30 to 60 days. Factoring works especially well when your clients are large corporations with slow-paying AP departments but strong credit.
Term Loan
Fund a specific growth initiative like opening a new office, acquiring a smaller firm, or hiring a team for a new practice area. Fixed-term loans work when you have a defined use of funds and predictable repayment capacity.
What Lenders Look For
Qualification Notes for Consulting Firms
Related Industries
Related Professional Services Funding
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