Winning a major new contract should be cause for celebration. For many growing US companies, it's also the moment a serious cash flow problem becomes unavoidable. The contract is signed, the work begins, but the revenue doesn't arrive for 30, 60, or 90 days — while payroll, materials, subcontractors, and overheads need to be funded right now.
A working capital line of credit is the most effective tool for bridging that gap — and for businesses with strong contract pipelines, it can be structured quickly and at scale. This guide explains how it works, who qualifies, and how US-based advisors, brokers, and CPAs can refer clients who need this type of facility.
US companies across technology, manufacturing, construction, logistics, professional services, and government contracting face the same fundamental challenge when they scale: growth consumes cash before revenue arrives. The faster a company grows, the more acute the problem becomes.
Consider a mid-sized staffing firm that wins a new contract to supply 50 additional staff to a Fortune 500 client. The contract is worth $3 million over 12 months. The client pays on 45-day terms. The payroll runs weekly. From day one, the company is funding several hundred thousand dollars in payroll before it sees a single dollar of revenue from the new contract — on top of its existing operational costs.
Without a working capital facility in place, the options are unattractive: turn down growth, draw on personal reserves, or approach a bank that will take weeks to respond and likely decline based on a balance sheet that doesn't yet reflect the new contract's value.
💡 The core issue: Traditional bank lending is backward-looking — it assesses what a business has done, not what it is contracted to do. A specialist working capital line is structured around the forward-looking reality of a company's contracted revenue and receivables pipeline.
A working capital line of credit is a revolving facility — a pre-agreed borrowing limit that a company can draw on, repay, and draw again as needed. Unlike a term loan (which is disbursed in full and repaid over a fixed schedule), a revolving line gives the business maximum flexibility: draw what you need when you need it, repay it when your customers pay you, and the capacity resets.
Interest is charged only on the outstanding drawn balance, not on the full facility limit. A company with a $2 million facility that has $600,000 drawn at any point pays interest on $600,000 — not the full $2 million. This makes it a highly efficient form of financing for businesses with lumpy or seasonal cash flows.
Working capital lines for growing US companies are typically structured in one of three ways depending on the nature of the business and its revenue:
Working capital lines are not a one-size-fits-all product, but the following profiles consistently represent the most compelling applications:
Federal, state, and municipal government contracts are among the most attractive receivables a lender can hold — the counterparty risk is essentially sovereign, payment terms are predictable, and contracts are typically long-running. A staffing agency, IT services provider, or construction company with a confirmed government contract can often access a working capital facility faster and at better terms than a comparable commercial business. The SBA's own Working Capital Pilot Program delivered $150 million in support to US manufacturers in early 2026 — testament to how mainstream this financing has become for the government contracting sector.
Tech companies with enterprise contracts often invoice quarterly or annually — but their engineering and operational costs are monthly. A working capital line smooths that mismatch, particularly for companies scaling rapidly after a significant new enterprise deal or following a round of investment that came with aggressive growth targets.
Staffing firms are perhaps the most natural fit for receivables-based working capital finance. Weekly payroll funded by monthly or 45-day client invoices creates a structural cash flow gap that grows in direct proportion to the company's success. A well-structured receivables facility grows automatically as the business wins more clients — the facility scales with the revenue, rather than requiring repeated renegotiation with a bank.
Manufacturers and distributors dealing with large purchase orders — particularly those supplying to major retailers or industry prime contractors — often need to fund significant materials and production costs before they ship a single unit. Purchase order finance or a receivables line that activates as soon as goods are shipped and invoiced is the standard solution for this sector.
Construction companies managing multi-phase projects face front-loaded costs — labour, materials, plant — against back-loaded milestone payments. A working capital line provides the buffer to fund mobilisation and early-phase costs without stalling a project or accepting punitive cash retention terms from the main contractor.
| Business Type | Common Trigger | Typical Facility Size |
|---|---|---|
| Government contractor | New federal or state contract signed | $500k – $10m+ |
| Staffing / professional services | New enterprise client win | $250k – $5m |
| Technology / SaaS | Enterprise contract, annual billing gap | $500k – $15m |
| Manufacturing / distribution | Large purchase order received | $500k – $25m+ |
| Construction | New project mobilisation | $1m – $20m+ |
Specialist lenders assessing a working capital application focus on a different set of criteria than a traditional bank:
📋 Preparation matters: The quality of presentation to a lender directly affects both the speed of approval and the terms offered. A well-packaged submission — covering the business background, contracted revenue, customer quality, and facility requirement — consistently outperforms a raw application, even for identical businesses. This is where an experienced broker adds the most value.
For many growing US companies, the first person they turn to when a financing need arises is not a lender — it's their CPA, their attorney, their commercial insurance broker, or a trusted business advisor. These professionals often know their clients' businesses in detail, understand the strategic context of a new contract win, and are well-placed to identify when a working capital facility could unlock significant growth.
The challenge is that most CPAs and general business advisors don't have direct relationships with the specialist lenders who structure these facilities — and the mainstream banking relationships they do have are often ill-suited to the agility and scale that a growth financing situation requires.
This is where partnering with a specialist finance broker adds real value — both for the client and for the referring advisor. The broker handles the full structuring, lender selection, negotiation, and placement process. The advisor makes the introduction, remains involved in the client relationship, and earns a referral fee on completion.
MW Capital Advisory works with CPAs, commercial finance brokers, attorneys, wealth managers, and business consultants across the United States who have clients in need of working capital, growth finance, or business credit facilities. If you have a client who has recently secured a significant new contract and needs funding to support delivery, we'd like to hear from you. We handle the full financing process, keep you informed throughout, and pay a competitive referral fee on completion. There are no upfront costs and no obligation — reach out to discuss a client situation in confidence.
For a US company (or their advisor) approaching us about a working capital facility, the process is straightforward:
Pricing on US working capital facilities varies significantly based on the structure, the lender, and the risk profile of the borrower. As a general guide:
| Facility Type | Typical Pricing (2026) | Fees |
|---|---|---|
| Receivables / invoice finance line | Prime + 1.5% – 3.5% p.a. | 0.5%–1.5% arrangement fee |
| Contract / PO finance | 1.5% – 3.5% per 30 days on drawn balance | Structuring fee varies |
| Unsecured revolving credit | 8% – 18% p.a. depending on profile | 0%–2% origination fee |
| Asset-based lending line | Prime + 1% – 3% p.a. | 0.5%–1% arrangement fee |
For the right business with strong receivables and a creditworthy customer base, pricing at the sharper end of these ranges is achievable. A well-presented deal with a compelling credit story consistently commands better terms than a raw application — which is why the quality of the introducing advisor's initial framing matters as much as the underlying financials.
A working capital line of credit is a revolving facility that allows a business to draw funds up to a pre-agreed limit, repay them as cash comes in from customers, and draw again as needed. Unlike a term loan, it's flexible — the company only pays interest on what it draws, and the facility remains in place throughout the agreed term. It's designed to smooth the gap between when costs are incurred and when customers pay.
Typically, US companies with at least 12 months of trading history, demonstrable revenue (usually $500,000+), and a clear growth trajectory — such as a recently signed contract or purchase order. Lenders focus heavily on the quality of the company's receivables or the creditworthiness of the counterparty on a new contract. Strong contracts with government entities, blue-chip corporations, or institutional buyers are viewed most favourably.
A bank overdraft is typically limited in size, can be recalled at any time, and is approved conservatively by high street banks. A specialist working capital line is structured specifically around the company's receivables or contract pipeline, can scale with the business, and is arranged by lenders who understand growth financing. It's also more reliable — a formal facility cannot be pulled overnight in the way a bank overdraft can.
Yes — and this is one of the most compelling use cases. Government contracts are typically long in payment terms but highly creditworthy. A working capital line secured against a confirmed government contract (or a receivables facility drawn against invoices raised to a government counterparty) is a well-established structure with strong lender appetite in 2026.
Facility sizes range significantly depending on the lender and the company's revenue. At the lower end, facilities from $250,000 to $1 million are available for established small businesses. Mid-market companies with strong contract pipelines can access $1 million to $25 million. Larger bespoke facilities above $25 million are available for the right companies and counterparties.
US-based CPAs, commercial finance brokers, attorneys, and business advisors can refer clients directly through our introducer programme. We handle the full structuring, lender selection, and placement process — you simply make the introduction and earn a referral fee on completion. There are no upfront costs and no obligation. Contact us directly to discuss a specific client situation in confidence.
Whether you're an advisor with a client who has just signed a major new contract, or a business owner looking to fund growth, we can structure the right facility and identify the right lenders — fast. Reach out in confidence to start the conversation.
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