Member Discussion

Getting Money Up Front For Projects?

Has anyone utilized mobilization fees or deposits on projects? If so, what vertical do you target -- retail, financial, public institutions, etc? As everyone has undoubtedly experienced the up front cost of preparing for a project can be intensive. The vast majority of the higher cost work is performed by project management, purchasing, and engineering before an installer sets foot onsite.

I have had a great deal of success using "mobilization" costs on public sector projects to procure some funds to offset much of this cost. Progressive billing on long term public sector projects are also of great benefit. However, I have not pursued this avenue in the private commercial business market yet. Has this ever worked out for anyone in the private sector?

Have you looked at purchase order financing?

This way, as long as you have a signed contract, you don't need the customer to agree to any special terms / up front payments. You go to the bank and the bank gives you money up front, typically a certain portion to help cover expenses.

I did this when I was an integrator for private sector projects. It worked very well. Obviously there was a cost to it, in interest paid, but it was not that onerous and really helped smooth out the projects.

Thank you, that is a really interesting option I have never heard of before. Who did you utilize?

Check with your bank. I am sure how receptive / helpful banks are varies and is impacted by individual bank officers / managers. It's not as common as other banking products, but it is worth considering.