How money moves in this industry
Payroll and materials are paid regularly even where commercial invoices are on 30-day terms. A new contract can increase this gap before it improves cash flow.
A practical example
A facilities contractor wins more sites and needs vehicles, equipment and wages before its first monthly claim is paid.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Contract mobilisation
- Cleaning equipment
- Vehicles
- Supplies and payroll
- Business acquisition
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Commercial cleaning machines
- Maintenance tools
- Service vehicles
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- How long are customer contracts?
- How quickly are invoices approved and paid?
- What equipment can be financed separately?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider public liability, workers compensation, property cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.