Fast funding to start a new contract

The best problem to have — and still a problem

Winning a large contract is exactly what a growing business wants. It’s also one of the most common reasons healthy businesses run short of cash. Costs start on day one: materials ordered, extra staff hired, equipment hired or bought, insurance extended, sometimes a site set up in another town. The first payment might be 30, 45 or 60 days away — and that’s if the client pays on time.

Contract funding fills that gap so you can deliver the job without starving the rest of the business.

Mapping the mobilisation gap

Before you borrow, build a simple week-by-week picture from the contract start to the first cleared payment.

Cost type	Typical timing	Notes
Materials and stock	Before or at start	Suppliers may want payment upfront from new customers
Wages and super	Every pay cycle	Super is now due within 7 business days of payday under Payday Super
Equipment hire or purchase	At start	Consider hire first if the contract is one-off
Insurance and licences	Before start	Often required by the client before site access
Travel and accommodation	Ongoing	For regional or interstate work
Subcontractors	Monthly or on milestones	Check their terms against yours

The largest cumulative shortfall across those weeks is your funding need. Our 13-week cash flow forecast guide walks through building it.

Choosing the right structure

Established business, moderate contract: an unsecured working capital loan or a line of credit, sized on turnover, repaid from the first one or two contract payments. See fast working capital.

Large contract relative to turnover: a property-secured loan. The lender relies on equity and the contract, so it can support amounts your turnover alone wouldn’t. $20k to $250k is possible same day; up to $5m within 24–48 hours.

Recurring contract work: a standing facility sized to your usual mobilisation, so each new job doesn’t mean a new application.

Just won the job? Tell a specialist what it needs — no credit check to enquire.

What lenders want to see

1. The signed contract, purchase order or letter of award, with the payment schedule.
2. The client — who they are and how they’ve paid you (or others) before.
3. Your cost plan — even a one-page summary of the mobilisation costs and timing.
4. Bank statements showing your normal trading.
5. Property documents if you’re using security.
6. Photo ID for directors.

Before you sign the contract

The best funding decision can happen before you sign. Look closely at:

• Payment terms. Can you negotiate a deposit, mobilisation payment or shorter terms?
• Retention. In construction, retention money held back can tie up cash for months after completion.
• Variations and disputes. How are variations approved and paid?
• Liquidated damages. What does a delay cost you, and does funding reduce that risk?

A mobilisation payment of even a modest percentage can shrink the gap you need to fund.

Common mistakes

• Pricing the job without pricing the cash. Finance costs belong in your tender.
• Assuming on-time payment. First invoices to new clients often take longer to process.
• Funding everything short-term. Equipment you’ll use for years may suit longer asset finance.
• Starting before funding is confirmed. It’s far easier to arrange finance before site mobilisation than after.

An illustrative example

A Townsville civil contractor wins a council drainage contract with monthly progress claims paid 30 days after approval. Mobilisation needs extra plant hire, materials and six additional workers, and the first payment is roughly ten weeks away. The business uses a property-secured loan over the owners’ investment property, repaid from the second and third progress claims. Illustrative only.

Contract funding across different industries

The shape of the gap depends on the kind of work.

Construction and civil. Progress claims are typically monthly, often paid 20 to 30 days or more after approval, and retention may be held back. Materials and labour are front-loaded. Funding is usually sized to cover two or three claim cycles. See construction.

Trades and maintenance contracts. Smaller, more frequent jobs, but a new facilities-management or maintenance contract can mean extra vans, tools and staff before the first monthly invoice. See trades.

Manufacturing and supply. A large purchase order means buying raw materials and running extra shifts weeks before goods are delivered and invoiced. Supplier deposits are common.

Services and labour hire. Wages dominate. Weekly payroll against monthly invoicing creates a gap that grows with every new worker placed.

Government contracts. Often reliable payers once set up, but new-supplier onboarding and invoice approval can slow the first payment. Plan for it.

Questions a specialist will ask about the contract

• Who’s the client, and have they paid you before?
• What’s the total value, and how is it paid — deposit, milestones, monthly claims?
• When does work start, and when is the first payment realistically expected?
• What are the biggest upfront costs, and when do they fall due?
• Is any of it already covered by your existing cash or facilities?
• Is there property available if the gap is large relative to turnover?

Clear answers let the specialist size the funding to the contract rather than guessing — and a correctly sized facility is cheaper than one that’s too big or has to be topped up mid-job.

Deliver the job you won

Winning work shouldn’t create a cash crisis. Enquiring doesn’t involve a credit check, your details aren’t sprayed across a list of lenders, and a real person will look at the contract and your cash flow before suggesting a structure. Please give us accurate figures for the contract value, payment terms and your turnover so we can size the funding properly the first time. See if you qualify.