The practical answer
It can help explain cash available for mobilisation, but its terms and any refund obligation need to be understood.
Provide the customer agreement, amount received, restrictions on use and when the money is earned. A refundable advance is different from unrestricted cash.
Show whether the deposit also has to cover materials, wages or other delivery costs. Do not count the same cash twice when planning the equipment initial payment and the rest of the contract.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: Equipment finance for a new contract →