Short answer
Business Funding for New Contracts: what matters first
Contract funding is working capital that lets a business deliver a newly won contract or tender before the client pays. It is usually available from $10,000 to $500,000 for businesses with an active ABN, at least 3 months of trading and $10,000 or more in monthly revenue. Lenders look at the signed contract or letter of award, the client's reliability, the contract margin, payment terms and the business's existing trading. Common uses are staff, materials, equipment hire and mobilisation. A short-term loan can cover set-up costs, invoice finance can release cash once work is invoiced, and trade finance can pay suppliers directly.
Who it is for
This suits established businesses that have won work bigger than their current cash can carry.
- Contractors and subcontractors starting a new job
- Cleaning, security and facility services businesses
- Manufacturers and wholesalers fulfilling a large order
- Suppliers to government or large organisations
Common funding uses
Funding usually covers the costs of getting started before the first payment.
- Hiring and onboarding staff
- Materials, stock and supplier deposits
- Equipment hire and site set-up
- Insurance, compliance and induction costs
- Wages until the first progress or invoice payment
What affects eligibility
Lenders weigh the contract alongside how the business already trades.
- Signed contract or letter of award
- Client reliability and payment terms
- Contract margin and size compared with current turnover
- Existing loans, ATO debt and bank conduct
What documents are needed
Bank statements come first, with evidence of the contract.
- Recent business bank statements, usually the last 3 to 6 months
- ABN, entity and director details
- Requested amount and a clear funding purpose
- Basic turnover, trading history and contact details
- Signed contract, purchase order or letter of award
- Budget or cost estimate for mobilisation
Frequently asked questions
Can I get funding before the contract starts?
Often, when the contract is signed and the business has its own trading history. A letter of award or signed contract is usually needed.
Does the client's size matter?
Yes. Contracts with government, large companies or established organisations are generally easier for lenders to rely on.
What if the contract is much bigger than my current turnover?
Lenders may limit funding relative to current trading. Combining invoice finance with a smaller loan can sometimes bridge the difference.
Check options
Get a practical view before you apply broadly.
Tell us the funding amount, turnover and purpose. A lending specialist will review what looks realistic and explain the next step if there is a lender fit.