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Professional Services business

Professional Services

Business Funding for Architecture Firms

Architecture firms invest heavily in talent and technology. Licensed architects command high salaries, and the software (Revit, AutoCAD, BIM platforms) requires expensive licenses and powerful workstations. Projects run months or years, and billing milestones may not align with when you need to pay staff. Winning a major project often requires speculative design work during the proposal phase that you cannot bill for.

Common Uses

What Architecture Firms Use Funding For

  • Cover payroll for architects, designers, and drafters during project ramp-up phases
  • Purchase BIM software licenses, rendering workstations, and large-format plotters
  • Fund the speculative design costs of competition entries and project proposals
  • Expand into a new market by hiring locally licensed architects and leasing office space

Funding Options

Best Funding Types for Architecture Firms

Business Line of Credit

A revolving line covers payroll and overhead between project billing milestones. Architecture firms bill on completion percentages, and the gaps between milestones can stretch months when projects hit permitting delays.

Invoice Factoring

Factor outstanding invoices from clients who have approved the work but not yet paid. Architecture projects for institutional and government clients often have 60 to 90 day payment terms that factoring can accelerate.

Term Loan

Fund major investments like opening a satellite office, acquiring a smaller firm, or investing in VR/AR capabilities for client presentations. Fixed payments work well when the investment has a defined payback period.

What Lenders Look For

Qualification Notes for Architecture Firms

Principal architects must hold active state licensure, and the firm should carry professional liability (E&O) insurance
Lenders evaluate your project backlog and signed contracts to forecast revenue over the coming 12 to 24 months
Firms with a mix of project types like residential, commercial, and institutional demonstrate more stable revenue

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