Quick answer
Taking on a bigger contract usually means paying for extra staff, materials and equipment weeks or months before the first payment arrives. Funding the ramp-up with a working capital loan, a line of credit or invoice finance, repaid from the contract's payments, lets the business say yes without draining its reserves. Check the payment terms and cash flow before signing.
Key points
- Big contracts cost money before they pay
- Map the cash flow of the contract before you sign
- Working capital, a line of credit or invoice finance can fund the ramp-up
- Negotiate deposits and progress payments where possible
Winning a bigger contract is exciting. Then the cash flow sinks in: new staff from week one, materials ordered up front, maybe new equipment, and the first payment 30, 45 or 60 days after the first invoice. Growth eats cash before it produces any.
Map the contract’s cash flow
Before signing, sketch the contract week by week:
- When do new costs start, and how much are they each week?
- When can you first invoice, and on what terms?
- When will the first payment realistically arrive?
- What is the peak amount of cash the business will be out of pocket?
That peak is the funding need. The working capital calculator helps estimate how much more cash your cycle ties up as sales grow.
Funding the ramp-up
| Option | Fits when |
|---|---|
| Working capital loan | Costs are front-loaded and payments follow in a predictable pattern |
| Line of credit | Costs come in uneven waves over the contract |
| Invoice finance | You invoice the client regularly on terms |
| Property-secured funding | The contract is large and the ramp-up long |
Already know roughly what you need? Tell us in about a minute. There is no credit check to enquire and your details are not passed around a panel of lenders.
Reduce the gap at the source
Funding is not the only lever. Before signing:
- Ask for a deposit or mobilisation payment.
- Negotiate progress payments or shorter terms.
- Ask suppliers for longer terms on materials for this job.
- Stage hiring so staff costs rise with the work.
Every dollar the client or suppliers carry is a dollar you do not need to borrow.
Check the margin, not just the revenue
A bigger contract with a thin margin can leave the business worse off once funding costs, overtime and mistakes are counted. Make sure the price covers the cost of carrying the work as well as doing it. Our guide to growing without running out of cash covers the warning signs.
Concentration risk
If one client becomes most of your revenue, a late payment or dispute can hurt badly. Keep other customers warm and keep a buffer.
In a nutshell
- Big contracts cost money before they pay
- Map the cash flow of the contract before you sign
- Working capital, a line of credit or invoice finance can fund the ramp-up
- Negotiate deposits and progress payments where possible
How Capital At Call handles it
Everything starts with a short enquiry: how much, what for, how long you have traded, roughly what you turn over and whether there is property in the picture. A person, not a scoring engine, reads it and calls you. They ask for the evidence that actually decides the loan, explain the realistic options and give you the full cost in writing. Nothing goes ahead, and no credit check is run, until you say yes. On a complete file, approval within the hour is possible. Every step is explained as it happens, so you always know what is being checked and why.
When borrowing helps, and when it does not
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.
A simple preparation list
A little preparation makes the first conversation far more useful, and it means the person who calls you can talk about options rather than chasing basic details:
- Your ABN and the legal name of the business.
- Online banking access, so recent statements can be shared through a secure read-only link.
- A rough figure for monthly turnover and the amount you need.
- A list of current loans and repayments, including any ATO payment plan.
- If property is involved, the address and roughly what is owed on it.
Getting the enquiry right
Think of the enquiry as the brief for your funding. A clear brief gets a fast, accurate answer. Give the amount you genuinely need, the revenue your bank statements will show, an honest view of your credit and a straight yes or no on property, and we can match you to the right option on the first attempt.
Take the next step
The next step is simple: send us the basics and a real person will call. There is no credit check when you submit it, and nothing goes to another lender without you knowing. Fill the form in accurately, especially the amount and your monthly revenue, because those two answers decide which option fits and how quickly it can move.
Frequently asked questions
How do I fund a contract before I get paid?
Common options are a working capital loan sized to the ramp-up, a line of credit drawn as costs arrive, or invoice finance once you start invoicing. The contract's payments repay the funding.
Will a lender look at the contract itself?
It helps. A signed contract with a reliable client and clear payment terms supports the application, alongside your bank statements.
What if the client pays later than the contract says?
Build a margin into your funding for late payment. Large clients often pay on their own schedule, whatever the contract says.
Can I ask the client for a deposit?
Yes, and for progress payments on longer jobs. Even a modest deposit reduces the funding you need.
What are the risks of a bigger contract?
Stretching staff and cash too thin, depending heavily on one client and underpricing the work. Check margins carefully before you commit.
Ask right here, it takes a minute
The same 60-second enquiry, on this page. No credit check to enquire, and the person who reads it is the person who calls you.