Finance that understands construction

Construction income moves in a rhythm the rest of the economy doesn't share. Work is done, a claim is lodged, a certifier assesses it, and payment lands weeks later — minus a retention of typically five or ten per cent that may not be released until well after the defects liability period ends. Meanwhile wages, fuel, materials and finance repayments are due on ordinary calendar dates. Any facility you take on has to survive that mismatch in the slowest month, not the best one.

The practical answer is structural. Asset repayments sized so a late claim doesn't threaten payroll; working-capital facilities that expand and contract with the claim cycle instead of a rigid term loan; and settlement dates timed so a new machine starts earning on the job it was bought for. Businesses that map their claim calendar before they borrow tend to borrow better — the numbers are the same, but the structure fits the way the money actually moves.

Most construction plant is financed under a chattel mortgage: the business owns the machine from settlement, the lender registers security over it, and the term is matched to the asset's working life rather than an arbitrary number. Excavators, skid steer loaders, compaction gear and attachments all suit the structure, new or used. In general terms, GST-registered businesses may claim the GST on the purchase price and depreciation may be available — but those outcomes depend on your entity and circumstances, so confirm the treatment with your accountant before you commit.

A machine bought against a signed contract is a stronger application than one bought on hope. The contract evidences income, justifies the capacity and often shapes the term — some operators align the loan term loosely with the project pipeline the machine will service, then let a sensibly sized balloon reflect its resale value at trade-in time. Used plant finances well too: the earthmoving resale market is deep, and a machine with service history is an asset a lender can price with confidence.

Vehicle finance in construction is rarely one purchase — it's a ute for every leading hand, a tipper for the site work and often a van for the service side. Financing them as a coordinated program rather than five disconnected loans keeps renewal dates staggered and gives you a single view of total repayments. Fit-outs such as racks, toolboxes and tow packages can generally be included in the facility, which beats paying cash for the gear that makes the vehicle useful.

The structuring logic mirrors the plant side: terms matched to how long you actually keep vehicles, balloons set against realistic resale, and settlement timed with the dealer. Where a business runs both heavy plant and a growing vehicle list, splitting them across lenders sometimes produces a better overall result than loyalty to one — that's a panel question, and it's exactly the kind of decision worth an hour of a specialist's time before you sign anything.

Even profitable contractors run tight on cash, because profit recognised on a claim and money in the bank are separated by certification, payment terms and retention. Working-capital facilities exist for precisely that stretch: overdraft-style lines that flex with the cycle, invoice-based funding where the paperwork suits it, and short-term facilities for mobilisation costs on a new project. The wrong answer is quietly using the tax office as a lender by letting obligations slide — it is expensive, and it reads badly on the next application.

Which tool fits depends on the shape of the gap. A recurring monthly lag suits a revolving line you draw and repay; a one-off hump — a big mobilisation, a delayed final claim — may suit a short fixed facility you clear and close. Sizing matters more than product choice: a modest facility used briefly each cycle strengthens a lender's view of the business, while a maxed-out line that never comes down invites harder questions next time.