Cladding sits right on the critical path of a build. The builder wants the house or unit weathertight so internal trades can start, and your crew is the one making it happen. But cladding products often have long lead times, suppliers want paying, and you’re working off scaffold or lifts that cost money every day. Fast cladding business loans keep your jobs moving without starving the business of cash.
The money pressures cladders face
Lead times and deposits. Many cladding products, from fibre cement and timber look boards to metal and composite panels, are ordered well ahead and some suppliers ask for a deposit or full payment before they’ll schedule production or delivery.
Access equipment. Most cladding work happens at height. Scaffold, EWPs and scissor lifts are either hired by the week or bought, and either way it’s a big cost that runs whether the weather cooperates or not.
Waiting on the builder. Your claim is usually tied to a stage of the job. Builders commonly pay 30 days or more after the claim is approved, and approval can wait on an inspection or the site supervisor’s schedule.
Detailing takes time. Flashings, corners, window reveals and penetrations are slow and fiddly, so labour costs can run ahead of your original estimate.
How cladders use business loans
- Paying for cladding boards, sheet, panels, battens, wraps and fixings
- Supplier deposits to lock in production slots
- Buying or hiring scaffold, an EWP or a scissor lift
- Crew wages while claims are outstanding
- A new ute, van or trailer
- Paying an ATO or BAS debt
- Funding the start of a townhouse job or small commercial building
Our building materials finance page explains how to fund supply orders ahead of the work.
Secured options: second mortgage, first mortgage, bridging and caveat
If you own property with equity, a fast second mortgage is the most common secured option. It sits behind your existing home loan and doesn’t need tax returns. A first mortgage suits property without a loan on it, and a business bridging loan helps if you’re selling or refinancing and need money now.
For Victorian cladders, a caveat loan is another fast option. Caveat loans are written in Victoria only; everywhere else, a second mortgage does the same job.
Property secured loans consider bad credit, don’t need financials and can be funded in as little as 24 hours in some cases. Terms are typically 1 to 12 months.
Unsecured options for cladders without property
An unsecured cash flow loan may suit if your cladding business has an ABN, has traded for 6+ months and can show steady deposits in its bank statements. It’s sized to turnover and some are approved within hours.
Paying off the ATO
When builders are slow, it’s easy for BAS and PAYG to slip. A fast loan can clear the debt in one go so you can focus on the next job. Your accountant can advise on the tax side.
Buying access equipment or a work vehicle
If you’re hiring an EWP every second week, owning one may make more sense. A fast business loan can fund a lift, scaffold, a trailer or a new ute without the delays of a traditional approval.
Taking on larger cladding contracts
Moving into townhouses, small warehouses or office buildings means bigger orders and more crew. When a job is urgent and the builder wants you on site next week, urgent business loans for construction can help you mobilise.
Example: a Melbourne cladder with a supplier deposit due
Hypothetical example. A cladding contractor in Melbourne wins a job to clad six townhouses. The supplier needs a $45,000 deposit to lock in production, scaffold hire for the job is around $12,000 a month, and a builder owes $38,000 from a previous job on 45 day terms. He owns his home. A caveat loan of $90,000 over four months covers the deposit, scaffold and wages, and he repays as the claims come in.
What to have ready
- Photo ID and ABN
- The property you’re using as security and what’s owing on it
- Business bank statements if you’re going unsecured
- The job details and how you’ll repay
Key facts: loans for cladders
- Borrow: $20,000 to $5 million
- Security: property you or a guarantor own, or unsecured with 6+ months of trading
- Speed: as little as 24 hours for some property loans
- Term: typically 1 to 12 months for property secured loans
- Suits: residential and commercial cladders, sheet metal and panel installers
- Victoria: caveat loans available; second mortgages elsewhere
All loans are for business purposes. See if you qualify in about 60 seconds and we’ll tell you quickly if we can help.
