Business finance for facilities management companies

Why FM cash flow is contract-led

Facilities management bundles cleaning, security, maintenance, grounds, M&E and more into contracts that are almost always billed monthly in arrears. The company funds a full month of wages, sub-contractors, consumables and management before the first invoice is even raised, then waits 30 to 60 days on payment terms with corporate and public-sector clients. Win a contract and the strain comes before the reward: the heaviest cash outflow is mobilisation, when staff are TUPE-transferred or recruited, uniformed, equipped and deployed weeks ahead of any income from that site.

Where the cash gets stuck

Mobilisation is the defining squeeze — the start-up cost of a new contract, paid in full before a penny is billed. Payroll is the next, because working capital is tied up funding large, frequent wage runs across multiple sites while client invoices sit on terms. Materials and equipment for a new mandate, plus the cost of holding consumable stock across sites, add to the float. Concentration matters too: one large client paying late can stretch the whole operation, because the cost base does not pause.

What FM companies use funding for

The classic use is bridging the mobilisation and first-invoice gap on a newly won contract — funding the recruitment, kit and early payroll until the billing cycle catches up. Beyond that, firms use facilities to cover payroll across a growing portfolio, buy equipment and consumables for a new mandate, and smooth the wait when a major client runs to the back of its terms. The aim is to fund contracts that are already won and will be paid, financing the timing rather than speculative spend. Size the gap on a contract with the working capital calculator.

What to weigh before borrowing

Match repayments to your contract billing cycle, so money goes out as the contracts pay in, and watch client concentration so one late payer cannot destabilise the schedule. Be clear on mobilisation cost versus the contract's monthly value, and ask for the total repayable, not just a rate. Read how to calculate affordability and consider whether invoice finance suits arrears billing. This is general information, not advice on your accounts.

How short-term company finance fits — no personal guarantee

Credicorp lends to the limited company, not to you personally — no personal guarantee, so your home is not pledged against the facility. As an exempt business lender it provides working capital to UK companies, not regulated consumer credit. A business loan or the flexible Credicorp Flex line gives a controlled pot to mobilise a contract and fund payroll, repaid as the monthly invoices clear. You can apply online.