Business line of credit · Civil contractors
Business line of credit for civil contractors
Civil contractor finance is asset-heavy lending for earthmoving fleets, float trailers and support vehicles, combined with working capital that carries wages and fuel across long government and tier-one payment cycles.
How a business line of credit works for civil contractors
A line of credit gives a civil contractor a buffer for the weeks between mobilising and claiming. Draw for fuel, floats and wages at the start of a job, repay when the claim lands, leave the limit available for the next mobilisation. Because civil claims are monthly rather than daily, a revolving facility usually fits better than a term loan sized to one job. Expect a line fee on the full limit and covenants around how long the balance can sit fully drawn.
The cash-flow pattern we plan around
Monthly progress claims to head contractors or councils, paid 30–45 days later, with heavy mobilisation costs incurred up front on every new site.
What civil contractors typically fund
- Excavators, rollers, graders and dozers
- Low loaders and plant trailers to move machines
- Site establishment and mobilisation costs
- Fuel and operator wages between claims
Business line of credit for civil contractors: the numbers
| Typical amounts | $10,000 – $500,000 |
|---|---|
| Term | 6–24 months |
| Indicative rates | 11.5% – 24% p.a. |
| Repayments | Weekly or monthly minimums on the drawn balance |
| Speed | 1–3 business days |
| Documents civil contractors usually need | ABN, GST registration and contractor prequalification details · 12 months of bank statements and latest financials · Machine quote, serial number and hours reading |
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
Civil plant finance
Civil plant finance is secured equipment lending for earthmoving and roadworks machinery such as excavators, rollers, graders and dozers, priced against the resale value of the machine and usually written over three to five years.
Mobilisation funding
Mobilisation funding is short-term working capital that covers the cost of establishing a civil site — floats, fuel, temporary works and early wages — before the first progress claim on that job is certified and paid.
What is a business line of credit?
A business line of credit is a revolving facility with a pre-approved limit. You borrow only what you need, pay interest only on the drawn balance and can redraw repaid funds without reapplying.
Line of credit vs business loan
A business loan pays a lump sum repaid on a fixed schedule; a line of credit is a flexible limit drawn as needed. Loans suit one-off purchases, lines of credit suit fluctuating working-capital needs.
Questions from civil contractors
How do civil contractors finance a fleet of earthmoving plant?
Through a series of chattel mortgages or a master equipment facility that lets machines be added as contracts are won, with terms of three to seven years matched to each machine’s life and the contract it will service. A broker spreads the fleet across lenders so no single lender is over-exposed and fleet pricing applies. Float trailers and support vehicles go on the same program.
How is mobilisation funded on a new civil contract?
A line of credit or a short-term working capital loan covers wages, fuel, site establishment and floats until the first monthly claim is paid 30 to 45 days later, and invoice finance against certified claims keeps cash flowing for the life of the contract. Sale and leaseback of unencumbered plant is another way to raise mobilisation capital quickly.
Can I release cash from plant I already own?
Yes. A sale and leaseback or refinance secured on unencumbered machines can release 60 to 80 per cent of their valuation for working capital, a deposit on the next machine or to consolidate debt, with the plant staying on your sites. Lenders like late-model excavators, loaders, dozers and graders as security for this.
Do government and tier-one contracts help a civil contractor’s application?
Yes. Signed contracts or panel appointments with councils, state agencies and tier-one head contractors are strong evidence of income and often move an application from a deposit to no deposit or from full financials to a lighter assessment. Lenders like the predictability of government-funded civil work, so include the contracts with your application.