Finance by industry
Construction and trades finance
Materials and wages are paid before a job is finished, and progress payments can take a while. Here is how finance is commonly used to keep work moving.
How money moves in construction and trades
Trade and building businesses often pay for materials, wages and hire before the customer pays. Progress payments and retentions can leave a gap between the work done and the money received.
Finance is often used to buy the tools, vans and plant the business runs on, and to smooth cash flow between jobs.
Finance commonly used
- Equipment finance: for utes, vans, trailers, tools and plant, usually with the equipment as security.
- Invoice finance: an advance against invoices or progress claims that have not been paid yet.
- Business loan: a set amount over a set term, for example to take on a bigger contract.
- Line of credit or overdraft: a limit to draw on for materials and wages between payments.
Documents usually asked for
- Recent business financial statements or tax returns
- Business bank statements
- Quotes for the equipment or vehicles you want
- Contracts, progress claims or invoices for current jobs
- Licences or registrations your trade needs
- Photo ID for the owners or directors
Every lender decides what it needs, so you may be asked for more or less. The document checklist builds a list for your type of finance and country.
Free tools that help
They work in your browser with your own numbers. Nothing is sent or saved.
- Buy outright or finance? paying cash compared with financing equipment.
- Payroll gap calculator how much cash you need to cover wages until customers pay.
- Invoice finance estimator cash now, cash later and the cost, from your own quote.
- Overdraft or term loan? compare the two for your situation.
- Break-even calculator whether a financed purchase pays for itself.
Good to know
- Words used on this page: chattel mortgage, invoice finance, working capital, overdraft, guarantor.
- This is general information about how finance is often used in construction and trades. It is not financial, legal or tax advice, and it is not a promise that any lender will approve an application.
- Read Before you borrow for the questions to ask any lender, and see other industries.
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