Construction business finance
Finance for builders, subcontractors and construction businesses, from progress claim funding to plant and materials, through a panel of 100+ bank, non-bank and private lenders.
- Progress claims and cash flow
- Plant, utes and equipment
- No obligation
In a nutshell
Construction businesses often wait 30 to 60 days or more for progress claims to be paid, while wages, materials and subcontractors are due now. Finance can close that gap: progress claim or invoice finance against certified claims, trade finance for materials, equipment finance for plant and vehicles, and overdrafts or business loans for working capital. Lenders look closely at your contracts, your customers and any ATO debt.
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AFCA memberPanel of 100+ bank, non-bank and private lendersAt a glance
- Cash flow
- Progress claim and invoice finance
- Materials
- Trade finance and supplier terms
- Plant and vehicles
- Equipment and vehicle finance
- Working capital
- Overdrafts, lines of credit and loans
- Decision time
- Hours to weeks
- Interest rates
- Vary by lender and business
How construction businesses use finance
Construction is cash-hungry. You pay for labour, materials, plant and subcontractors as the job goes, but you're paid in progress claims, often 30 to 60 days after you claim, with retentions held back until the job is finished. A single slow payer or a big new contract can stretch cash flow quickly, even for a profitable business.
Most construction businesses use a mix of finance: something to bridge the wait for progress claims, something to pay suppliers, and asset finance for plant and vehicles.
Progress claims, invoices and cash flow
Progress claim finance and invoice finance advance a share of the money you've claimed or invoiced, so you don't have to wait for payment. The facility grows as you win more work, unlike a fixed loan. Lenders look at who you're claiming from and how reliably they pay, and usually won't fund retentions or disputed claims.
For gaps between jobs, wages and day-to-day costs, a line of credit or overdraft lets you draw only what you need.
Materials and suppliers
Trade finance and trade accounts pay your suppliers now and give you time to repay, ideally after you've been paid for the work. They're useful for large material orders at the start of a job.
Plant, equipment and vehicles
Excavators, loaders, scaffolding, tools, utes and trucks are usually financed with equipment finance or vehicle finance, secured by the asset itself. See our guides to earthmoving equipment finance and truck finance for the detail.
ATO debt in construction
Tight cash flow often means tax falls behind. Lenders will check for ATO debt, and many will still lend, either to clear it or alongside a payment plan. Our guide to ATO debt business loans compares the options.
What lenders look at
- your contracts, pipeline and the builders or principals you work for
- how concentrated your work is, as one large customer is riskier than many
- your aged debtors, and any disputed or overdue claims
- your licences, insurance and trading history
- any ATO debt and how it's being managed
Eligibility and documents
What lenders usually look for
- An active ABN, and the licences your trade or building work requires
- Trading history, from about 6 months with some non-bank lenders to 2 years or more with banks
- Contracts, purchase orders or a pipeline of work
- Customers with a reasonable payment history, for progress claim or invoice finance
- A plan for any ATO debt, as lenders check for it
Documents you may need
- Identification for each director or owner
- Business bank statements, usually 6 to 12 months
- An aged debtors and creditors report, and a list of current contracts
- For larger facilities, financial statements, tax returns and BAS
- Quotes for equipment or vehicles you're financing
Requirements vary by lender. All lending is subject to each lender's credit criteria and assessment.
What lenders publish for construction businesses
Here's a selection of what lenders publish about products that construction businesses use. It isn't a full list of lenders or a ranking.
- ScotPac's Progress Claim Finance is for businesses that raise progress claims under Security of Payment laws, most commonly subcontractors working for principal contractors. It advances cash against claims without real estate security. Profile →
- Shift's Trade Account adds trade terms of up to $500,000 to almost any supplier invoice, so you can pay for materials and repay on a date you choose or weekly over up to 20 weeks. Profile →
- Dynamoney's earthmoving and excavator finance runs over 2 to 7 years, with no restriction on the age or brand of equipment, and Dynamoney says approval can come in as little as 3 hours. Profile →
- Angle Finance offers secured finance for yellow goods such as excavators, backhoes and forklifts, commercial vehicles up to 4.5 tonnes and trucks up to 12 tonnes GVM. Profile →
- Macquarie lends to built environment businesses such as architects, engineers and surveyors, typically from $1 million and up to 2 times EBITDA, subject to turnover. Profile →
A sample of lenders, as published by each lender, checked 23 October 2026.
Which finance fits which construction cost?
Waiting on progress claims
- Usual finance option
- Progress claim or invoice finance
- Why it fits
- Advances cash against claims or invoices you've already raised
Materials and supplier bills
- Usual finance option
- Trade finance or a trade account
- Why it fits
- Pays suppliers now and gives you time to be paid first
Excavators, plant and tools
- Usual finance option
- Equipment finance
- Why it fits
- Secured by the equipment, with terms matched to its working life
Utes, vans and trucks
- Usual finance option
- Vehicle or truck finance
- Why it fits
- Secured by the vehicle, often with little paperwork
Wages and gaps between jobs
- Usual finance option
- Overdraft or line of credit
- Why it fits
- Draw only what you need, and pay interest only on that
An ATO debt
- Usual finance option
- Business loan
- Why it fits
- Clears the debt and replaces it with set repayments
| Usual finance option | Why it fits | |
|---|---|---|
| Waiting on progress claims | Progress claim or invoice finance | Advances cash against claims or invoices you've already raised |
| Materials and supplier bills | Trade finance or a trade account | Pays suppliers now and gives you time to be paid first |
| Excavators, plant and tools | Equipment finance | Secured by the equipment, with terms matched to its working life |
| Utes, vans and trucks | Vehicle or truck finance | Secured by the vehicle, often with little paperwork |
| Wages and gaps between jobs | Overdraft or line of credit | Draw only what you need, and pay interest only on that |
| An ATO debt | Business loan | Clears the debt and replaces it with set repayments |
Related guides
Talk to us about construction business finance
Tell us what you need and a little about your business. We work with a panel of 100+ bank, non-bank and private lenders and match you with the ones best suited to your business, loan amount and timing.
- One conversation, no obligation
- We seek multiple lender options for you
- Business finance from $30,000
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FAQs
Questions about construction business finance
Yes. Some lenders offer progress claim finance for subcontractors, advancing cash against claims raised under Security of Payment laws. ScotPac, for example, says most of its progress claim finance clients are subcontractors working for principal contractors.
Usually not until they're due. Most lenders don't advance against retention amounts, because they're only payable once the defects period ends. Plan for retentions in your cash flow.
Often, yes, especially equipment and vehicle finance, which are secured by the asset. Some non-bank lenders also lend from about 6 months of trading. Contracts already in place help.
Often, yes. Many lenders will refinance ATO debt or lend alongside a payment plan, although criteria vary, especially if the ATO has started recovery action. See our guide to ATO debt business loans.
Your contracts and pipeline, who your customers are and how they pay, your aged debtors, any ATO debt, your licences and your trading history. Lenders are cautious with businesses that rely on one or two large customers.
Depending on the lender, decisions can be as quick as a few hours for equipment, vehicle and smaller unsecured finance. Progress claim and invoice finance facilities usually take a few days to set up.
No. There's no cost to you for our service. We're paid by the lender when your finance settles, and there's no obligation to proceed.
This page is general information only and isn't credit, tax or financial advice. Lender details are taken from each lender's published information, checked 23 October 2026, and can change. All lending is subject to each lender's credit criteria and assessment.