Business funding for builders and construction

Construction is one of the most cash-hungry industries in the country. Builders carry materials, labour and subcontractor costs for weeks before a progress claim is paid, and then often wait again for retentions at the end. Profitable firms still run short when several jobs overlap or a developer pays late.

How cash moves through builders

A typical job starts with a deposit or nothing, then weeks of spending on materials, site costs and trades. Progress claims are lodged at agreed stages and paid on terms that can stretch well beyond the contract. A share may be held as retention until practical completion or the end of the defects period. Meanwhile the next job is already starting, so a builder can be funding several jobs at once.

Where builders get squeezed

• Materials ordered and paid for before the first progress claim.
• Subcontractors expecting payment faster than the head contractor pays you.
• Retentions held for months after the work is finished.
• Weather delays pushing claims back while wages continue.
• Quarterly BAS landing in the middle of a big pour.

Want a person to look at your numbers? The 60-second enquiry runs no credit check, and the person who reads it is the person who calls you back.

Matching funding to the need

Funding	Why it suits builders
Line of credit	Covers overlapping jobs, drawn and repaid as claims are paid
Working capital loan	Funds the ramp-up of a single large contract
Equipment finance	Excavators, trucks, scaffolding and tools secured on the asset
Property-secured loan	Larger needs, tax catch-ups or retentions tied up for months

How lenders read builders

• Bank statements showing progress payments arriving over time.
• The pipeline of signed contracts and who the clients are.
• Concentration on a single developer or head contractor.
• Any ATO debt or payment plan, which is common in the sector.

For larger amounts, or when the statements do not yet show the full picture, property security from $20k to $5m changes the assessment. No valuation is needed, and repayments can be deferred by paying interest up front or capitalising it.

Presenting your business to a lender

Lenders who see a lot of builders know the industry’s rhythms, but they still need to see yours. Run all income through one business account, keep BAS lodgements current and be ready to explain any unusual months, such as a big one-off job or a slow patch caused by weather or a lost client. A short note on what the money is for, how much you need and how it will be repaid does more for an application than a long business plan.

A worked example (illustrative)

A Melbourne residential builder has three homes under construction and $160,000 of claims outstanding, with one developer paying 30 days late. Wages and materials for the next stage are due this fortnight. A line of credit drawn for $90,000 covers the gap and is repaid when the overdue claim lands. A second mortgage taken earlier covers a backlog of BAS from a slow year, with interest capitalised so it does not compete with weekly costs.

Reducing the gap before you borrow

Ask for deposits on residential work, lodge claims on the day each stage is reached and follow up promptly. Negotiate supplier trade terms that line up with your claim cycle, and price fixed-price jobs with room for material increases. State security of payment laws can help subcontractors who are not being paid on time.

Key takeaways

• Costs run ahead of progress payments on almost every job
• Retentions and late claims stretch cash further
• Lines of credit suit overlapping jobs; equipment finance suits plant
• Property security supports larger amounts with flexible repayments

What happens when you enquire

One enquiry, one team, one clear answer. That is the whole approach. We read what you send, call you, ask for the documents that matter and lay out the options in plain English with the total cost attached. Your details are not shopped around, and your credit file is only checked if you choose to accept an offer. If the answer is no, you will hear it quickly and with a reason, so you can plan your next move.

A quick test before you borrow

Ask yourself where the repayment will come from. A customer payment, the next peak season, a property sale or steady trading are all real sources. Hope is not. If you can point to the money that will clear the loan, and roughly when, funding is likely to help. If you cannot, talk to your accountant about the underlying numbers first.

Getting your details together

Have these within reach and the process moves quickly, because each one answers a question the assessor would otherwise have to come back and ask:

• ABN, business structure and how long you have traded.
• Recent business bank statements, ideally shared online.
• What the money is for and how it will be repaid.
• Any tax debt, default or arrears you should mention up front.
• Contact details for anyone else who would need to sign.

Getting the enquiry right

Late surprises are what slow funding down. A second property owner nobody mentioned, turnover that is lower in the statements than on the form, an amount that doubles after the first call: each one sends the assessment back to the start. If you tell us the full story at the beginning, even the awkward parts, the file only has to be worked through once.

Get a straight answer

It costs nothing to find out. Check your eligibility in about a minute, with no credit check and no obligation. One team handles your enquiry from start to finish, and you will hear from a person, not an automated system. Fill the form in as accurately as you can; a careful minute now saves days later.