DCF KNOWLEDGE CENTRE
New contracts & business growth
Practical answers for UK limited companies. Explore the question closest to your purchase, funding need or agreement.
Read our equipment finance for a new contract guide →19 questions
Can I finance equipment needed for a new contract?
Potentially. Explain the contract, required assets, delivery timetable and cash commitment so lenders can understand why the investment is needed and how it fits the business.
Read answer →Can I finance vans needed to start a new contract?
Potentially. Provide details of the contract, required vehicles, timing and business finances so the funding requirement can be assessed before mobilisation.
Read answer →Can I finance plant needed for a new contract?
Potentially. Contract-driven plant purchases can be considered where the asset, supplier, business and overall credit proposal fit lender criteria.
Read answer →Can I finance assets from more than one supplier?
Potentially. A wider project may involve several suppliers, but each asset, invoice, delivery date and payment requirement should be identified clearly.
Read answer →Can equipment finance complete before a new contract starts?
Potentially, but the lender needs to assess the business and delivery timetable before the asset is required.
Read answer →Is a letter of intent enough to support equipment finance?
It can provide context, but it may not offer the same evidence as an executed contract and does not guarantee funding.
Read answer →How do I fund the gap before the first contract invoice is paid?
Build a mobilisation cash forecast because asset finance may cover eligible equipment without covering wages, fuel, materials or customer-payment delays.
Read answer →What happens if a contract is cancelled after equipment finance starts?
The finance obligation generally continues unless the agreement provides otherwise, even when the work supporting the purchase disappears.
Read answer →Should I hire equipment first while a new contract settles in?
It can be useful to compare hire with buying on finance when workload, duration or equipment specification is uncertain.
Read answer →Can rapid growth make equipment finance harder to obtain?
Yes. Growth can increase borrowing and working-capital needs before customer receipts catch up, even when sales are rising.
Read answer →What contract information is useful for a machinery finance application?
Useful information explains the work, its certainty, expected margin and when cash will be received.
Read answer →Can a subcontractor finance equipment for work awarded by a main contractor?
Potentially. The lender will assess the subcontract terms, business and asset rather than relying only on the main contractor’s reputation.
Read answer →Can I finance tooling if my customer will own it?
Ownership arrangements need resolving before finance because the lender may need title or security over the funded asset.
Read answer →Is equipment finance the same as funding invoices under a new contract?
No. Equipment finance concerns assets, while invoice funding concerns eligible receivables and has its own conditions.
Read answer →Can I finance equipment needed for only a six-month project?
Possibly, but a longer finance commitment may be a poor fit if there is no use or reliable disposal plan afterwards.
Read answer →Can I finance one high-value machine for a major expansion?
A large single asset may be considered, but its size relative to the business can make supporting evidence especially important.
Read answer →Does a customer deposit help support an equipment purchase?
It can help explain cash available for mobilisation, but its terms and any refund obligation need to be understood.
Read answer →How should I estimate utilisation when applying for equipment finance?
Use realistic paid working time, allowing for maintenance, travel, setup, changeovers and gaps between jobs.
Read answer →What if equipment delivery is later than the customer’s mobilisation deadline?
Tell the supplier, customer and broker promptly; a delivery delay can affect both contract performance and funding conditions.
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