Invoice finance · Electrical contractors
Invoice finance for electrical contractors
Electrical contractor finance funds fitted-out vehicles, test and installation equipment and elevated work platforms, plus the working capital needed to carry cable and switchgear costs on commercial and solar projects.
How invoice finance works for electrical contractors
Electrical subcontractors invoicing builders, facilities managers and commercial clients can advance against each claim as it is lodged instead of waiting 45 days. The assessment is driven by who owes you, so a book of established builders and commercial property managers gets better advance rates than one dominated by a single volume builder. Retention and disputed variations are generally excluded. It scales with your turnover, which suits a contractor whose growth is limited by cash rather than by available work.
The cash-flow pattern we plan around
Large materials outlays at the start of each project against progress claims paid 30–45 days in arrears, with retention held to practical completion.
What electrical contractors typically fund
- Fitted-out service vans and utes
- Test, certification and thermal imaging equipment
- Scissor lifts and elevated work platforms
- Cable, switchgear and solar componentry up front
- Apprentice wages and licensing
Invoice finance for electrical contractors: the numbers
| Typical amounts | $20,000 – $5,000,000 |
|---|---|
| Term | 1–12 months |
| Indicative rates | 8% – 18% p.a. |
| Repayments | Settled when the customer pays each invoice |
| Speed | 24–48 hours per invoice once set up |
| Documents electrical contractors usually need | ABN and electrical contractor licence · 6–12 months of bank statements · Equipment or vehicle quote, or materials purchase order |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Electrical contractor finance
Electrical contractor finance is lending to licensed electrical businesses covering vehicles, test and access equipment, and working capital for the materials purchased ahead of progress payments.
Materials-up-front exposure
Materials-up-front exposure is the cash a contractor commits to cable, switchgear and componentry at the start of a project, before any part of that project has been claimed or paid.
What is invoice finance?
Invoice finance (also called debtor finance or receivables finance) advances a percentage of an unpaid invoice’s value now, with the remainder paid when the customer settles, minus the financier’s fees.
Invoice finance vs invoice factoring
Factoring sells the invoice to the financier who collects from your customer; invoice discounting keeps collections with you and is usually confidential. Both are forms of invoice finance.
Questions from electrical contractors
Can an electrician finance a fitted-out van and an elevated work platform?
Yes. Vans with racking and fit-out, scissor lifts, boom lifts and trailers are financed as vehicles and equipment over three to five years, and several items can be bundled. Established electrical contractors are usually approved on low documentation within a day.
How do electrical contractors fund cable and switchgear on big projects?
A line of credit or a short-term loan covers materials at the start of each project, and invoice finance advances against progress claims so wages are covered while claims sit 30 to 45 days in arrears. Trade finance can pay wholesalers for large switchgear orders with extended terms.
Can solar installers finance stock ahead of installations?
Yes. Trade finance and lines of credit fund panels, inverters and batteries ahead of installations, and are repaid as customers and rebates are paid. Lenders like solar businesses with steady installation volumes and a clean claims history.
What do lenders look for in an electrical contracting business?
Consistent claim and invoice income in the bank statements, a licence and insurances, a work-in-hand schedule, tax up to date and a clean credit file. Established contractors are often approved on bank statements alone; new businesses need a deposit or a trade background.