Quick answer
When a business wins a contract larger than its usual cash flow can carry, fast funding covers materials, wages and mobilisation until the first progress payment arrives. Unsecured funding suits moderate amounts; property-secured loans with no valuation suit larger ones. Approval within the hour is common, so the job can start on time.
Key points
- Big contracts cost money before they pay
- Fund materials, wages and mobilisation up front
- Match the term to the payment schedule
- The signed contract is a key document
Winning a contract that is bigger than anything you have done before is a milestone. It can also be a cash flow trap. Before the first progress payment arrives, you may need to buy materials, hire staff, pay subcontractors, mobilise equipment and carry insurance and permits. On a 30 or 45 day payment cycle, the business can be out of pocket for two months before it sees a dollar.
Map the cash, not just the profit
Lay out week by week what the contract costs and when it pays:
| Week | Typical costs | Typical receipts |
|---|---|---|
| 1 to 2 | Mobilisation, deposits on materials, first wages | None |
| 3 to 6 | Wages, materials, subcontractors | First claim submitted |
| 6 to 8 | Ongoing costs | First payment, often 30 days after claim |
| 9 onwards | Ongoing costs | Regular progress payments |
The cash flow gap calculator turns that into a single number: the lowest point and when it hits. That is how much to fund, plus a buffer.
Fast funding options
For moderate amounts, unsecured funding sized on your bank statements is quickest, with approval within the hour common. For larger contracts, property-secured funding with no valuation can deliver a bigger number just as fast, and interest can be prepaid or added so nothing comes out until the contract starts paying. Share the signed contract and payment schedule; it shows exactly how the loan will be repaid.
Short on time? You can enquire in about a minute and come back to this page while we check what is possible.
Watch the retention and the terms
Many contracts hold back retention, often a percentage of each claim, until practical completion or the end of a defects period. That money is yours but not available. Check the contract for retention, payment terms, liquidated damages and variation processes, and build them into your cash plan. If the head contractor pays slowly, a separate tranche of invoice finance for later claims can help.
A worked example (illustrative)
A commercial painting company wins a $1.1m contract on a new apartment building, about four times its usual job size. Materials and extra crews will cost around $260,000 before the first claim is paid. The owner offers his home as security, shares the contract and payment schedule and is approved the same day for a second mortgage business loan with interest added. The crews start on schedule, and the loan is repaid from the second and third progress payments.
Do not underbid to win
Fast funding makes big jobs possible, but it cannot rescue a contract priced below cost. Before you sign, check your margin includes the cost of carrying the job, including finance, and that the payment terms are workable.
What to have ready
Have these within reach and you remove the usual causes of delay:
- Signed contract or letter of award
- Payment schedule and retention terms
- Cost estimate for the first two months
- Business bank statements or property details
- Photo ID and ABN
Speed bumps to avoid
If funding is slower than expected, it is usually because of:
- A contract not yet signed
- Unclear start date
- Underestimated mobilisation costs
- Directors unavailable to sign
Why accurate answers matter
We ask a short list of questions because each one changes which option fits and how fast it can move. Please answer them as they really are, not as you hope they will be next quarter. If you have a default, an ATO debt or a new ABN, say so up front. It will not stop us looking, and it means there are no surprises halfway through that slow everything down.
Quick recap
- Big contracts cost money before they pay
- Fund materials, wages and mobilisation up front
- Match the term to the payment schedule
- The signed contract is a key document
From enquiry to funds
Think of it in four blocks of time. The first few minutes: your enquiry and the first call. The first hour: evidence in, assessment done, approval given, sometimes inside 15 minutes. The next few hours: loan documents issued and signed online by everyone who needs to sign. Then payment: funds released, with money landing within 24 hours of enquiring entirely possible. Each block runs faster when you have your documents, your guarantors and your phone close at hand.
See if you qualify today
It starts with a short form: amount, purpose, how long you have been trading, revenue, credit history and property. No credit check to enquire, no lead farming, and a real person on it quickly in business hours. Fill it in as accurately as you can and the rest moves faster. Begin now.
Frequently asked questions
Can I get funding based on a contract I have won?
The contract helps show how the loan will be repaid, but lenders still look at your bank statements or property. Together they support a fast decision.
How much should I borrow for a new contract?
Map the costs until the first and second payments land, add a buffer and borrow that, rather than the full contract value.
What if progress payments are late?
Build in a buffer and choose a term that runs past the expected payment dates. Property-secured loans are flexible if timing slips.
Can I use invoice finance on a contract?
Once you start invoicing progress claims, invoice finance may help with later stages. For the start-up costs, a loan is usually faster.
Start the clock right here
The same 60-second enquiry, on this page. No credit check to enquire, and a real person picks it up fast.