Quick answer
Big contracts often need money upfront — materials, extra staff, equipment, insurance — weeks before the first payment arrives. Fast options include a short-term loan, a line of credit or property-secured funding, sized to the gap between costs going out and the client paying. Lenders look at the contract, the client's payment terms and your track record. With documents ready, funding within 24 hours is a realistic aim.
Key points
- Size the funding to the cash gap, not the whole contract value.
- A signed contract with clear payment terms strengthens the application.
- Short-term or revolving funding usually fits better than a long loan.
- Check the client's payment record — slow payers stretch the gap.
- Typical fits
- Short-term loan, line of credit
- Unsecured range
- Typically $5,000 to $500,000
- Property-secured range
- $20,000 to $5,000,000
- Credit check to enquire
- None
Winning a big contract should feel like a win. Then the maths kicks in: materials have to be ordered now, extra staff start next week, the equipment hire begins on day one — and the client pays 30, 45 or 60 days after the first invoice. Plenty of businesses have turned down work, or nearly gone under delivering it, because of that gap. Fast funding lets you say yes and deliver properly.
How big is the gap, really?
The trick is to look at timing, not the contract value. A simple week-by-week map:
| Week (illustrative) | Costs out | Client payments in | Running gap |
|---|---|---|---|
| 1 | $40,000 materials, $12,000 wages | $0 | –$52,000 |
| 2 | $12,000 wages, $3,000 hire | $0 | –$67,000 |
| 3 | $12,000 wages, $8,000 materials | $0 | –$87,000 |
| 4 | $12,000 wages | $0 | –$99,000 |
| 6 | $12,000 wages | $60,000 first claim | –$63,000 |
| 8 | $12,000 wages | $60,000 second claim | –$15,000 |
The deepest point — about $99,000 here — plus a buffer for late payment is roughly what you need. Don’t forget super: since 1 July 2026, the ATO requires super guarantee contributions to reach employees’ funds within 7 business days of payday, so extra staff add to the gap quickly.
Which funding fits a new contract?
- Business line of credit — ideal for progress-payment contracts. Draw as costs rise, repay as claims are paid.
- Short-term business loan — a lump sum for a defined start-up cost, repaid from the first payments.
- Working capital loan — when the contract permanently lifts the size of your business.
- Property-secured loan — for larger gaps, or when trading history doesn’t support the amount unsecured.
If the start date is close, apply now with the contract and your cost plan.
What do lenders want to see for contract funding?
| Document | Why it helps |
|---|---|
| Signed contract or letter of award | Proves the work and the payment terms |
| Cost plan | Shows the gap and how funding will be used |
| Bank statements | Shows your current trading and capacity |
| Client details | Payment record and reputation matter |
| Track record | Similar jobs delivered before |
A reputable client with clear payment terms is a strong exit for a short-term loan. A vague “they’ll pay when it’s done” is not.
How fast can contract funding arrive?
With statements, ID and the contract ready, unsecured amounts can be assessed within a day, and same-day funding is possible for smaller sums. Property-secured funding of $20k to $250k is possible the same day; larger amounts within 24–48 hours on a clean deal. The Funding Clock gives a quick estimate.
What are the risks of funding a big contract?
- Underquoting. If the job’s margin is thin, finance costs and overruns can wipe it out. Check your numbers before borrowing.
- Client concentration. One big client paying late can strain everything. Know their payment habits.
- Retentions and disputes. In construction especially, a portion of payment may be held back. Plan for it.
- Scope creep. Variations add costs before they add income.
- Overcommitting. Make sure existing customers aren’t neglected while you deliver the new job.
An illustrative example: a Townsville electrical contractor wins a $480,000 fit-out for a regional hospital wing, paid monthly in arrears on 30-day terms. Mapping the costs shows a peak gap of about $140,000 in month two. A $150,000 line of credit, secured over the owner’s investment property, is set up within two days. The business draws as costs rise and repays as each claim is paid, and the facility is still there for the next contract.
How should you price finance into the job?
The cleanest way to avoid a contract that looks profitable but isn’t is to treat the cost of funding as a job cost, just like materials or labour. Before you sign, work through:
- The funding gap and how long it lasts. From the cash map above, how many weeks will you be carrying the deepest gap?
- The likely finance cost over that period. Ask for the total cost over the time you expect to hold the funding, not just the headline.
- A late-payment allowance. If the client’s terms are 30 days, plan for 45. If retentions apply, assume they’ll be held to the end.
- The margin after all of that. If the job still makes a sensible profit, the funding is doing its job. If it barely breaks even, renegotiate the price or the payment terms before you commit.
Payment terms are often more negotiable than owners assume. A deposit on signing, fortnightly progress claims instead of monthly, or a mobilisation payment for the first week’s costs can shrink the gap dramatically — and with it, the amount you need to borrow. Large clients sometimes have standard terms they won’t change, but smaller ones frequently will if asked early.
Finally, think about what happens after the contract. If it’s likely to lead to more work of the same size, a revolving facility you can reuse is worth more than a one-off loan.
Say yes to the contract
A good contract shouldn’t be turned down because the money arrives late. There’s no credit check to enquire, we don’t scatter your details across a crowd of lenders, and a real person maps the gap with you. Please give the contract value, payment terms and your real cost estimate — accuracy is what gets you the right facility first time. Apply now.
Frequently asked questions
Can I get a loan based on a contract I've just won?
The contract helps, but lenders still look at your business's trading history, bank statements and, for larger amounts, property security. A signed contract with a reputable client and clear payment terms makes the case much stronger.
How much should I borrow for a new contract?
Map the costs and the client payments week by week. The largest gap between cumulative costs and cumulative payments, plus a buffer, is roughly the funding you need.
What if the client pays late?
Build that into the plan. Choose a loan term with slack and repayment flexibility, and check the client's payment record with others who've worked for them if you can.
Is a line of credit or a loan better for contracts?
A line of credit suits contracts with progress payments, because you draw and repay as each stage is paid. A short-term loan suits a single upfront cost repaid from one payment.
