Work order finance is a working capital facility offered to businesses that have received a work order or contract from a client, typically a government department or a large corporation.
For example: A construction firm that wins a government tender may use work order finance to purchase materials, hire workers, and start the project—even before receiving payment from the client. The loan is repaid as the business collects payments on the project, enabling them to execute big orders without delays due to lack of upfront funds.
Benefits :
- Especially helpful for contractors and service providers
- Often used in government tenders, infrastructure, and engineering sectors
- Loan disbursal tied to project milestones