Why great engagements still cause cash stress
A consulting engagement ties up your people for weeks before the invoice is even approved, and corporate payment cycles add more weeks.
The better your clients, the slower they may pay. Large companies and public agencies often run accounts payable on net-45, net-60 or longer. Some require a purchase order, vendor onboarding and approval steps before the first payment can be made. A win in March can mean cash in July.
Meanwhile your consultants are salaried or paid as contractors on a normal schedule. If you staff a six-person project, that is several payrolls before the first dollar returns. Small firms often respond by delaying hiring, which caps growth, or by taking on smaller clients who pay faster.
Consulting firms also deal with lumpiness. A big engagement ends, and the pipeline has a gap. The bench, the people waiting between assignments, still gets paid. This is the classic reason firms run both a reserve and a credit line.
Business development is the last piece. Proposals, travel, conference sponsorships and a sales lead take time and money with uncertain timing. Good funding turns those uncertainties into planned costs.
What consulting firms fund
Payroll across slow payment cycles, new hires for confirmed engagements, business development, travel, software and an office or training budget.
- Payroll while invoices age. Keeping the team paid on schedule.
- Hiring ahead of a signed engagement. A senior consultant onboarded before a start date.
- Business development. Proposal writers, a sales hire, conference presence and thought-leadership content.
- Travel and project expenses. Often reimbursed later by the client, but paid by you first.
- Software and data subscriptions. Analytics, research and collaboration tools.
- Certifications and training. Credentials that open larger contracts.
Pair each use with the right repayment style. Payroll bridging is short-term and repays when the client does. Hiring for growth takes longer to pay back.
Payback example: staffing a net-60 engagement (illustrative)
Total the costs you carry until payment, compare funding cost to engagement profit, and check what happens if the client pays late.
This is an illustrative example. A firm wins a $180,000 engagement over three months, billed monthly at $60,000, paid net-60. Direct costs, mainly four consultants, run $38,000 a month. The firm must carry costs for about five months before the final invoice is paid.
| Item | Amount |
|---|---|
| Engagement revenue | $180,000 |
| Direct cost: 3 months x $38,000 | $114,000 |
| Profit before funding | $66,000 |
| Peak cash carried (about 2 months of cost plus start-up) | $90,000 |
| Example funding cost on $90,000 | $10,500 |
| Profit after funding | $55,500 |
Consulting margins like this make funding worthwhile. The risk is concentration. If this client is more than half your revenue and pays 30 days late, the funding bill still comes due on time. Stress test with a 30-day delay in the payment stress test, and compare offers with the total cost guide.
ROI Funder products that fit
A line of credit is usually the best fit because you can draw for payroll and repay when the client pays.
Business line of credit. Draw each month of the engagement, repay as invoices clear, then keep the line for the next one. Funded in 24 to 72 hours. See business line of credit.
Working capital. A lump sum at engagement start, with funds possible the same business day on approved, complete files. See working capital.
Term loan. Fixed payments for a longer investment such as an office or a practice build, funded in 1 to 5 days.
Revenue-based financing. Repayment follows sales, which helps when engagements are lumpy.
If your problem is purely unpaid invoices from large clients, invoice factoring or receivables financing might come to mind. ROI Funder does not place those products. A line of credit is the nearest alternative, though it will not advance cash against a particular invoice.
What funders review in a consulting firm
They look for steady deposits, a spread of clients, six or more months in business and $20,000+ in monthly revenue. A 500+ FICO is considered.
Funders read bank statements for consistent deposits and a reasonable balance. Consulting deposits can arrive in large, irregular chunks, and that is understood when explained. A brief note listing your top clients by share of revenue helps a reviewer see concentration.
- 3 months of business bank statements
- 6 or more months in business
- $20,000 or more in monthly revenue
- FICO of 500 or higher considered
Sole practitioners with a business bank account can apply too, provided they meet the revenue and time thresholds. Keep personal and business spending apart. Payments to contractors should clear from the business account, not your personal one.
ROI Funder cannot promise funding for any file, but a clear statement history moves faster.
Start your application
The application is online, takes a few minutes, uses a soft credit pull and does not obligate you to take an offer.
Begin with the application and add three months of statements. ROI Funder checks our 100+ funder network for matches and returns offers with true cost, payback period and monthly-equivalent payment.
The how it works page explains the process. Choose the offer that still works if your biggest client pays a month late.
Frequently asked questions
Can I fund payroll for a large client who pays net-60?
Yes, a line of credit or working capital can carry payroll until the client pays. Stress test the plan for a month of delay.
Can a one-person consultancy qualify?
Yes, if it has a business bank account, 6 or more months in business and $20,000 or more in monthly revenue.
Do you offer invoice factoring?
No. ROI Funder does not place factoring. A line of credit is the closest alternative.
How fast can I get money?
Working capital can arrive the same business day on approved, complete files. Lines of credit usually take 24 to 72 hours.