Sale and leaseback · Civil contractors
Sale and leaseback 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 sale and leaseback works for civil contractors
Civil contractors often own plant outright and are still short of cash when a large job is awarded. A sale and leaseback sells owned machines to a financier and leases them back, releasing capital without stopping work. It is one of the few ways to turn a paid-off excavator into mobilisation funding. The cost is real — you pay finance charges on gear you already owned — so it makes sense when it wins a contract, not as a way of covering an ongoing loss. Lenders will value on age, hours and condition.
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
Sale and leaseback for civil contractors: the numbers
| Typical amounts | $20,000 – $2,000,000 |
|---|---|
| Term | 12–60 months |
| Indicative rates | 8.5% – 18% p.a. |
| Repayments | Monthly |
| Speed | 3–10 business days including valuation |
| 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 sale and leaseback?
Sale and leaseback is a transaction where a business sells an asset it owns to a financier and simultaneously leases or finances it back, retaining full use of the asset while converting its value into cash.
How much can you raise through equipment leaseback?
Financiers generally advance 60–80% of an asset’s assessed market value, based on age, condition, hours and resale demand rather than the original purchase price. A valuation or inspection is usually required.
What is a PPSR search?
A PPSR search checks the Personal Property Securities Register for existing security interests over an asset. Financiers run one before a leaseback to confirm the equipment is genuinely unencumbered and can be sold.
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.