A big order just landed

Not every urgent funding need is bad news. Sometimes the phone rings with the best order you’ve ever had: a retailer wants triple your usual volume, a council contract comes through, a builder wants you on three sites at once. The problem is that the stock, materials, staff or equipment have to be paid for now, and the customer pays later.

Turning that order down because you can’t fund it is one of the most frustrating ways for a growing business to stall. Fast funding exists so you don’t have to.

Is the order worth funding?

Before you borrow, run the numbers honestly. Fast funding costs more than slower lending, so the job needs to stay clearly profitable after you include it.

Ask yourself	Why it matters
What’s the margin after materials and labour?	The funding cost comes out of it
What will the funding cost in total?	Fees and charges over the full term
When does the customer actually pay?	Decides the loan term
How reliable is the customer?	A late payer can turn a good job into a squeeze
Can you deliver on time?	Penalties or rejections can wipe out the margin

If the job still makes good money after all that, funding it is usually a sound decision.

Your strongest document

A signed purchase order, contract or letter of award tells a lender exactly where the repayment will come from. Combined with linked bank statements, it can make a lender much more comfortable with a larger amount or a newer business. Have it ready to send on the first call, along with the supplier quotes for what you need to buy.

How fast it can move

For smaller amounts and a trading business with steady banking, a short-term unsecured loan is usually quickest, with same-day funding possible once the file is complete. For larger orders, or where the business is newer, a property-secured loan can carry more: $20k to $250k is possible same day once title, value and signers are sorted, and up to $5m possible within 24–48 hours.

Match the term to the payment

The loan should end shortly after the customer pays, not years later. If the order is invoiced on 60-day terms after delivery in a month, a loan of around four months gives you breathing room. If the contract pays in stages, repayments can follow the stages. Build in a few weeks of buffer, because large customers don’t always pay on the day. The Payment Times Reporting Regulator publishes how quickly big businesses pay small suppliers, which can help you judge a large customer’s habits.

Equipment for the order

If the order needs new equipment, ask whether you’ll keep using it afterwards. If yes, finance it separately over its useful life, secured on the item. If it’s only for this job, hire may be cheaper than buying. Putting a long-life asset on a short loan squeezes the cash flow the order was supposed to improve.

An illustrative example

A Wollongong packaging manufacturer wins a supply deal with a national grocery chain: $280,000 of product over three months, paid 45 days after each delivery. Raw materials for the first two deliveries cost $110,000, and the supplier needs payment within a week. The business has traded for eight years and the directors own their factory. A property-secured loan over the factory funds the materials within days, structured to be repaid from the second and third payments. Illustrative only.

Staffing up for the order

Big orders often need people as much as materials. Casual staff, overtime or a subcontractor can all be funded the same way, but remember the extra costs: super, workers’ compensation insurance, payroll tax if it applies, and the time it takes to train someone. Build them into the amount you borrow and the price you quoted. If you’ll keep the extra staff after the order, plan how their wages will be covered once the funded job ends, because a short loan won’t do that.

It’s also worth asking the customer for a deposit. Many larger customers expect to pay something upfront on big orders, especially for custom work. Even ten or twenty per cent reduces what you need to borrow and shows the customer is committed.

Plan the exit before you start

Write down how the loan will be repaid, from which payments and when. If the customer pays late, what’s the backup? A line of credit, a slightly longer term or a second payment source can all help. Our guide to getting out of a short-term business loan explains how to plan this properly.

Say yes to the order

Tell us what the order is, what you need to fund and when the customer pays. Asking doesn’t touch your credit file, your details aren’t sent to a dozen lenders, and one real person reads it and calls you. Send the order and accurate numbers and we can move at the speed the opportunity needs. Start your enquiry here.