What is mobilisation and why it needs funding

Mobilisation is the set-up phase that gets a contract ready to start on site. For engineering projects this commonly includes: transporting and erecting plant and machinery, delivering and storing materials, temporary works, pre-start labour costs, project staff staging, early supplier payments, insurance premiums and performance/retention bonds. Mobilisation can also include hiring specialist subcontractors or paying deposits to long‑lead suppliers.

These costs are often front‑loaded and payable well before the client issues milestone certificates or pays the first interim invoice. That timing mismatch creates cashflow pressure for many engineering firms — particularly sub‑contractors or SMEs winning their first big contract.

Typical mobilisation spend varies by size of contract. As a rough guide:

• Smaller subcontracts (£50k–£250k): mobilisation may be 5–15% of contract value
• Mid-sized contracts (£250k–£2m): mobilisation often 10–20%
• Larger projects (multi‑million): mobilisation can be 15–30% depending on plant and bonding

Can UK business loans help finance mobilisation for a new engineering contract?

Short answer: yes. There’s no single “mobilisation loan” product that fits every company but a range of business finance solutions in the UK are routinely used to fund mobilisation. Which one is best depends on:

• How quickly cash is needed
• What security you can offer (asset, contract, director guarantee)
• Contract type and client credit (public sector vs private)
• Whether you need funding for plant, materials, bonds or wages

Common solutions used for mobilisation include:

• Invoice finance (factoring or discounting) — release cash against certified invoices or staged payments
• Asset & equipment finance — fund plant and machinery purchases or hire‑purchase structures
• Short‑term business loans / bridging finance — cover short gaps until invoices are paid
• Contract or development finance — specialist facilities tied to contract milestones
• Supply‑chain / purchase order finance — to pay suppliers based on an order
• Bond/premium funding — to spread the cost of performance bonds or insurance premiums

If you want to compare options quickly and get tailored quotes, take a Free Eligibility Check with UK Business Loans — it’s quick and non‑binding. Free Eligibility Check

Which loan types suit different mobilisation needs?

Immediate working capital — short‑term & bridging loans

Use when you need cash fast to pay labour, suppliers or deposits before any invoices are certified. These facilities can be arranged quickly compared with some secured loans, but rates and fees are typically higher. They suit firms that expect predictable inflows (e.g. client payment on milestone within weeks) and need a short gap funded. Arrangement terms often range from days to a few months.

Invoice finance (factoring & discounting)

Invoice finance is ideal where mobilisation costs will be recovered via certified invoices or staged payments. Lenders advance a percentage of approved invoices or certified valuations, releasing liquidity without additional long‑term security. It’s scalable for growing contracts, but fees depend on debtor risk and the client’s credit. Invoice finance is commonly used in engineering where milestone certification is reliable.

Asset & equipment finance

If mobilisation requires buying or leasing specialist plant, asset finance preserves working capital by spreading the cost of the equipment. Options include hire‑purchase, finance leases or operating leases. Repayments are typically structured against the working life of the asset and the finance is normally secured against the item purchased.

Bond funding / premium finance

Performance bonds and contract guarantees are often a contracting requirement. Bond brokers and premium funders can fund the bond premium or provide premium funding to spread insurance costs. These are specialist products and may require separate introductions.

Not sure which fits your situation? Speak to a specialist broker via our matching service — it saves time and avoids costly guesswork. Get Quote Now

How lenders and brokers assess mobilisation finance applications

Lenders and brokers will look at the complete commercial picture, not just the headline figures. Key assessment areas include:

• Contract evidence: signed contract, payment schedule, retention and bond clauses
• Client creditworthiness: is the counterparty a public body, PLC or a smaller private firm?
• Cashflow forecast: a mobilisation cashflow showing timing of spends and expected receipts
• Company strength: recent management accounts, trading history, order book
• Assets offered: plant or equipment that can be used as security
• Experience and track record: ability to deliver similar contracts on time

Typical documents requested: contract copy, bank statements, management accounts, project forecast and supplier terms. Timescales vary — some invoice‑based facilities can be pre‑qualified in hours and set up in days; secured loans, bonding and structured contract finance can take longer to underwrite.

Practical steps to secure mobilisation finance

Here’s exactly what to do to improve your chances and speed up decisions:

1. Build a one‑page mobilisation cashflow — list all expected outflows (plant, materials, wage runs, bond premiums) and the exact dates you expect client payments or milestone certifications. Be realistic and include a contingency.
2. Gather contract documents — signed contract, payment schedule, named client contact for credit checks and any collateral terms.
3. Decide on priorities — is buying plant essential or can hire/purchase be used instead? Do you need a bond or just working capital?
4. Compare products quickly — use a broker or a matching service to surface specialists for engineering mobilisation; you’ll avoid irrelevant offers and save time.
5. Negotiate key terms — arrangement fees, interest rate, triggers for repayment (time vs milestone), whether retentions are acceptable security.
6. Maintain contingency — don’t fund to the exact amount needed; leave a 5–15% contingency for unexpected delays or supplier price changes.

When you submit an enquiry through UK Business Loans you’re not making an application — it’s a quick information form we use to match you to lenders/brokers who can deliver. Expect contact by phone or email, typically within hours during business days. Get Started Free Eligibility Check

Risks, traps and compliance to watch for

Mobilisation finance helps deliver contracts on time — but watch these common pitfalls:

• Hidden fees: arrangement, facility, monitoring and exit fees can add materially to cost.
• Security and guarantees: some lenders seek director personal guarantees or charge assets — understand implications before signing.
• Repeat reliance on high‑cost short‑term finance: can create a debt spiral if contract flows are delayed.
• Bonding and contract conditions: some funding structures affect your ability to provide bonds or alter contract covenants; always cross-check with the contract.

UK Business Loans introduces you to lenders and brokers who understand engineering contracts. The enquiry form is used to match you — it is not a loan application. Before accepting any offer, ask for a full cost breakdown and timescales from the lender/broker who contacts you.

Why use UK Business Loans to find mobilisation finance

Mobilising on time matters. UK Business Loans helps engineering businesses save time and find the most appropriate finance partner quickly. Our benefits:

• Quick, simple enquiry — takes under 2 minutes
• We match you to vetted lenders and specialist brokers with sector experience
• Multiple quotes mean you can compare terms and costs
• We only share details with partners likely to help — you get fewer irrelevant approaches
• There’s no obligation to proceed after a match — the enquiry is a matching tool, not an application

Want to see how it works? Complete a short form and we’ll connect you to lenders/brokers who specialise in mobilisation and contract finance. We typically get responses within hours. Free Eligibility Check

Learn more about options tailored for engineering firms by visiting our industry guide on engineering business loans.

Case study snapshot

An anonymised Midlands engineering subcontractor won a £750k contract requiring £90k mobilisation for plant delivery and initial materials. UK Business Loans matched the contractor to a broker who combined short‑term bridging to pay suppliers and invoice discounting to release funds on the first certified milestone. Mobilisation completed on time, penalties avoided and the business maintained margins while converting the bridge into an invoice facility at a lower ongoing cost.

Ready to explore what could work for your contract? Get Quote Now

Frequently asked questions

Can I get mobilisation finance as a subcontractor?

Yes. Many subcontractors use invoice finance or short‑term bridging to cover mobilisation — success depends on contract terms, client credit and the availability of certified milestones.

How quickly can I get mobilisation money?

Timescales vary: simple eligibility checks can be done in hours; invoice and asset finance can be arranged in days; complex contract funding and bonds can take several weeks. Using a matching service speeds up the sourcing process.

Do I need to provide a bond to get funding?

Not always. You may need bond or premium funding if the contract requires a performance bond. Lenders can fund the bond premium or introduce bond providers — this is a specialist area.

Will applying affect my credit score?

An initial enquiry or matching request to UK Business Loans does not affect your credit file. Lenders and brokers may perform credit checks later if you progress with them.

What if client certification is delayed?

Invoice finance can reduce this risk by releasing cash against certified elements or retentions accepted by the funder. Ensure a contingency in your mobilisation cashflow to cover delays.

How much does UK Business Loans charge to match me?

Our matching service is free for businesses. We introduce you to lenders and brokers who may contact you with quotes; any fees or charges discussed are between you and the chosen lender/broker.

Get mobilisation funding conversations started — fast

If you’re preparing to mobilise a new engineering contract, don’t risk delay. Complete a quick enquiry and we’ll match you with lenders and brokers who understand contract mobilisation and can supply rapid quotes.

Get Quote Now — Free Eligibility Check (takes under 2 minutes). The enquiry form is for matching only; it’s not a loan application.