Signed a large contract? Some lenders can fund the start-up costs within 2 business days.
- Some non-bank lenders can fund within 2 business days of a complete application
- Loans from $100K to $5M, sized to the contract and your month-by-month cash-flow forecast
- Construction and civil subcontractors, cleaning and facilities firms, manufacturers, suppliers and service businesses
- Covers materials, plant and vehicles, set-up costs, new staff and the weeks before the first claim or invoice is paid
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead), and no-doc where property is offered as security
Winning the contract was the goal. Now the work has to start, and the money from it is weeks or months away. Materials need ordering, equipment has to be bought or hired, and new people may be needed on site before the first claim is lodged. Contract finance is business funding that carries those start-up costs until the customer's payments begin. It is usually a combination of facilities rather than one loan: a line of credit for the first weeks, equipment finance for the machinery the contract calls for, and invoice finance once claims and invoices go out. Joseph Farhat and his team review the contract, its payment terms and your current position, then set out which combination lenders are likely to offer and what it would cost.
Who we can help access finance
- A civil subcontractor awarded a council drainage package who must buy pipe, aggregate and a second excavator before the first monthly claim.
- A commercial cleaning company that has won a multi-site hospital contract and needs machines, consumables and uniforms in place from the first shift.
- A steel fabricator supplying a warehouse build, where the steel is paid for months before it is delivered and invoiced.
- An electrical contractor on a large apartment project, with retention held back from every progress claim.
- A grounds maintenance business starting a five-year government contract that calls for a new fleet of mowers and utes on day one.
- A food manufacturer supplying a national retailer on 60 day terms, with the first production run to fund before anything ships.
- An IT services business rolling out hardware across a large customer's sites before the first milestone payment is due.
How Contract Finance Works
The gap has two parts. First come the costs you carry before you can bill anything: deposits on materials, plant, set-up and the first weeks of labour. Then comes the wait between sending a claim or invoice and being paid. On NSW construction contracts, the Security of Payment Act sets the outer limits on that wait: payment within 15 business days for a head contractor claiming from the principal, and 20 business days for a subcontractor. A contract can set shorter terms, but not longer. Whether the Act covers your contract is a question for your lawyer. Where it does not, the contract sets the payment terms.
Each cost usually suits a different facility. A revolving line of credit or a short-term business loan covers set-up costs, before there is anything to invoice. Equipment finance spreads the cost of plant and vehicles over several years, secured by the asset itself. Once claims and invoices are issued, invoice finance advances a share of each one and is repaid when the customer pays, although some financiers treat progress claims differently from standard invoices. Larger amounts can be secured against property. Joseph Farhat and his team build the mix around your cash-flow forecast, so borrowing peaks when costs do and falls as payments arrive. They place it with the lenders on our 90+ bank, non-bank, and specialist panel whose policy fits your contract and your industry.
We are a finance broker, not an accountant, lawyer or insolvency practitioner. Your lawyer is the right person to review the contract terms, and your accountant the forecast. If the business may not be able to pay its debts as they fall due, speak with your accountant or a registered insolvency practitioner before taking on new borrowing.
What Lenders Assess for Contract Finance
The contract
its value, length, payment terms and milestones, and whether it allows invoices to be assigned to a financier.
The customer
who will be paying you, their size, and how reliably they pay their suppliers.
Your cash-flow forecast
costs and receipts month by month, showing the peak amount needed and when it starts to fall.
Margin on the job
whether the contract price covers labour, materials and overheads with room for variations and delays.
Track record
contracts of a similar size and type you have delivered before, and how they were paid.
Existing commitments
current loans, equipment finance, your ATO position and other contracts running at the same time.
Security
equipment, property, the invoices themselves, or none. Unsecured facilities still usually need a director's personal guarantee, which can reach personal assets.
The Contract Finance Process: What to Expect
- Tell Joseph Farhat and his team about the contract, the start date, the payment terms and what has to be bought or paid before the first payment.
- Send the signed contract or letter of award, a cash-flow forecast from you or your accountant, recent business bank statements, and quotes for any equipment.
- We match each cost to a facility and a lender on the panel, and show the limit, rate, fees and security for each option side by side.
- The lenders issue approvals and written terms. You read them with your accountant, and your lawyer where the contract or security needs it, before you sign.
- Facilities are set up in the order the costs fall due, so funds are ready for set-up costs, and invoice drawings begin when the first claims go out.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~8% p.a. | Property, the equipment financed, or the debtor ledger | $250K to $5M | 12 months revolving, or up to 5 years | 3 to 6 weeks |
| Non-Bank Lenders | From ~12% p.a. | Invoices, equipment, business assets or unsecured | $100K to $3M | 3 to 36 months | Within 2 business days |
| Private Finance | From ~1.2% per month | Property | $150K to $5M | 1 to 12 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for contract finance
We represent you, not the lender
Joseph Farhat and his team work for you from the letter of award through to the day the facilities are in place.
Each cost on the right facility
equipment on a long term, set-up costs on a short one and claims on invoice finance, rather than one loan stretched to fit all three.
Sized to the forecast
we look at when your costs peak and when payments start, so you are not paying interest on money that sits idle.
Contract terms read early
assignment clauses and payment milestones change which financiers can help, and we check them before anything is lodged.
Industry appetite you cannot easily see
some financiers fund construction claims, government contracts or a single large customer, and others avoid them.
One conversation, not five applications
each credit enquiry is recorded on your file, so we start with the lender whose policy already fits.
90+ lenders on one panel
bank, non-bank, and specialist, so a business with full financials can go to a bank at a sharper rate, and a fast start date still has options.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the contract starts in a fortnight, tell us early and we will tell you what is realistically achievable before then.
Frequently asked questions
What is contract finance?
It is business funding that covers the costs of starting a new contract before the customer pays for the work. It is usually a combination of facilities: a line of credit or short-term loan for set-up costs, equipment finance for plant and vehicles, and invoice finance once claims are issued. The total is sized to your cash-flow forecast and reduces as the contract payments come in.
Can I borrow against a contract before any work is invoiced?
Usually not against the contract alone. Most financiers lend against invoices once work has been delivered and billed, so the weeks before the first claim are funded another way. A line of credit, a business loan or equipment finance can cover that period, assessed on your trading history, your security and the contract itself. A signed contract with a reliable customer strengthens the application, even where it is not the security. Joseph Farhat and his team will show you which lenders will fund the start-up stage for your type of contract.
How does the NSW Security of Payment Act affect my cash flow?
It sets the latest dates by which a construction claim must be answered and paid in NSW. The person you claim from has 10 business days to provide a payment schedule, or the full claim becomes payable. Payment is due within 15 business days for a head contractor and 20 business days for a subcontractor, or 10 business days for a subcontractor on exempt residential work, and a contract can only shorten these. If the schedule disputes your claim, you can apply within 10 business days for adjudication, where an independent adjudicator decides the amount payable. Only work done in the last 12 months can be claimed, and late payments attract interest at the contract rate or the court rate, whichever is greater. A forecast built on these dates shows lenders the longest likely wait for payment. Your lawyer can explain how the Act applies to your contract.
What happens to retention money on a large project?
On NSW projects valued at $20 million or more, head contractors must hold the retention money of their subcontractors in a trust account with an authorised deposit-taking institution. The rules sit in the Security of Payment Regulation 2020. Retention is still held back from each claim, so it is not cash you can use until it is released under the contract. Many lenders leave retention out when they size a facility, and fund against the claim amounts actually payable. Joseph Farhat and his team will build that into the numbers from the start.
Do large customers have to pay small suppliers within a set time?
Not under the Payment Times Reporting Scheme. The scheme requires businesses with more than $100 million in total annual income, or more than $10 million where they belong to a group with over $100 million combined, to report their payment times for each 6 months of the income year. It is a reporting requirement only and does not set a deadline for paying you. Your contract terms, and the Security of Payment Act on NSW construction work, decide when payment is due. Lenders read those terms closely when they size a facility.
Will GST be due before the customer pays my first claim?
It can be. Under non-cash (accruals) accounting, GST on a sale is reported in the period you issue the tax invoice or receive payment, whichever comes first. A large first claim issued near the end of a BAS period can therefore bring GST due before the customer has paid it. Businesses with aggregated turnover under $10 million may be able to choose cash accounting instead. Whether that suits your business is a decision for your accountant. Lenders will expect the GST timing to show in your cash-flow forecast.
Can I get contract finance with low-doc or no-doc?
In many cases, yes. Invoice and equipment facilities are assessed largely on your customers and the asset, so several non-bank lenders will work from BAS, bank statements, an aged debtors report and the contract itself. Larger unsecured amounts usually need fuller financials. No-doc options exist where property is offered as security, at a higher rate. Where a home is offered, it is at risk if repayments are not met, so get independent legal advice before you sign. Joseph Farhat and his team will tell you what each lender on the panel asks for.
Do you work with borrowers with bad credit?
Yes, we do. Defaults, supplier arrears or a judgment on your file do not rule you out, and it is not something we will make you feel awkward about. A listing says little about the contract you have won, the customer who will be paying, or the margin on the work. Several lenders on our panel weigh the contract, the customer and your invoices more heavily than the credit file, and will price for the risk rather than decline it. What helps most is telling us early, so we approach the right lender first instead of adding enquiries to your file. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Why work with Settled With Joe to arrange your contract finance?
Because one conversation replaces a round of applications. Most of the people we help with contract finance are business owners and company directors who have just won work bigger than anything before it: a start date weeks away, a supplier wanting a deposit, plant to buy before the first shift, or a customer paying on 45 or 60 days. These situations are familiar to us and there is no judgement in the conversation. What lenders look at is the contract, the customer, the margin and a forecast that shows when the borrowing falls away. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented file can go to a bank at a sharper rate, and there are still options when the start date is close. We are based in Sydney and work with businesses Australia-wide. Joseph Farhat and his team will tell you honestly and early whether we can help and what is realistic in your timeframe.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with contract finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges contract finance Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Security of payment laws differ between states, and the rules on this page are the NSW ones. Joseph Farhat and his team will identify which lenders on the panel suit your contract and start date.
