Running a small building company is a juggling act. You might have two custom homes, a duplex and a renovation on the go, a dozen subbies to keep happy, supplier accounts across timber, bricks, concrete and plumbing, and clients who all pay on their own timetable. When everything lines up, it works. When one thing slips, the whole lot can wobble.
That’s when a small builder needs money fast: a quick top up that keeps the business stable while the next payment comes in.
Why small builders need urgent finance
Small builders carry more risk than most people realise. The margin on a house build is tight, the costs are huge, and the timing of money in and money out rarely lines up.
The most common reasons a small building company needs a fast top up:
- A stage payment is late. The client’s lender is slow to release the frame or lock up payment, or a bank valuation comes in short and the client has to find the difference.
- A fixed price job has run over. Material costs went up after you signed, a variation was missed, or site conditions cost more than allowed for.
- Subbies need paying. Good subbies expect to be paid on time. Keep them waiting and they move to the builder who pays.
- Suppliers want their account cleared. A supplier puts your account on stop until the balance is paid, and suddenly the frame can’t be delivered.
- The ATO wants its money. BAS, PAYG and income tax debts build quietly and then land hard.
- Retention and final payments are held up. Money you’ve earned is sitting with a client or head contractor.
- Growth. More jobs means more deposits paid to suppliers and more wages before the money comes back.
None of these mean the business is in trouble. They mean it needs a bridge.
What is a top up or prop up loan for a builder?
A top up loan is a fast business loan that adds cash to your building company for a short period. It props up working capital while you wait for money that’s already coming, or it funds something that will pay for itself.
For small builders it usually looks like one of these:
- Fast second mortgage. Secured behind the existing loan on your home or another property. The most common option by far.
- Fast first mortgage. Secured over a property that has no loan on it, or refinancing an existing loan into a larger one.
- Business bridging loan. Covers a gap until a known event, like the sale of a completed spec home or a refinance. See business bridging loans.
- Caveat loan. In Victoria only. Everywhere else a second mortgage is used.
- Unsecured cash flow loan. For building companies without property to offer, trading six months or more.
Property secured loans are based on the equity in real estate you or a guarantor already own: your home, an investment property, commercial property or land. They’re not based on the value of the build you’re working on. No financials are needed, bad credit is considered, and terms typically run 1 to 12 months.
Every loan is for business purposes and is priced on your circumstances. Our lending team finds the sharpest rate available for your situation.
Can a builder get a loan to finish a build?
Yes. If a job has run over and there isn’t enough left in the contract to reach practical completion, a loan secured against property you already own can fund the gap. Finishing the build gets you the final payment, releases retention and protects your reputation. Our construction completion loans page explains more.
Can a small builder borrow to pay the ATO?
Yes. An ATO debt can restrict your ability to win work and can put pressure on everything else. A lump sum loan clears it in one go, and you repay the loan from upcoming stage payments or a refinance. Talk to your accountant about the tax side and see ATO debt loans for tradies.
Can a builder borrow to fund a spec build or duplex?
Yes, as long as the loan is secured against property you already own, like your home or the land you’re building on if it has equity. Many small builders fund a spec home or a duplex between client jobs. Our duplex and townhouse construction finance page covers that in more detail.
Secured vs unsecured: which suits a building company?
Secured loans are the fastest way to a larger amount. If you own a home, investment property, commercial unit or land with equity, you can usually borrow more, and the assessment is based on the property, not your books. That’s a big help if your financials are behind, which is common in busy building companies.
Unsecured cash flow loans suit building companies with an ABN, six months or more of trading and recent business bank statements. They’re sized to turnover, don’t need property and some are funded within hours. They’re ideal for smaller top ups, like covering a subbie pay run or a supplier account.
Many builders use both: an unsecured loan for a quick fix and a secured loan when the need is bigger. Pick the one that fits the size and urgency of the need.
Example: a builder with two late payments
Example only. A small building company in Brisbane has three homes under construction. On one, the client’s lender delays the lock up payment by three weeks. On another, the client’s bank valuation comes in low and the frame payment is on hold while the client sorts out the difference. Between them, about $180,000 is tied up. Subbies are due Friday and the timber supplier has put the account on stop.
The director owns a home with good equity. A fast second mortgage for $200,000 is arranged within a few days. Subbies are paid, the supplier account is cleared and all three jobs keep moving. When both stage payments land, the builder repays the loan in full, well inside the term.
Using a top up loan the right way
Fast finance works best when it’s short, targeted and has a clear way out. Before you borrow, work out:
- What it’s for. Paying subbies, clearing the ATO, finishing a build, buying land or carrying a job.
- How it gets repaid. A stage payment, practical completion, the sale of a spec home, a refinance or retention release.
- When. Line up the term with when the money is due in, with some buffer.
The guide on exit strategies for short term loans goes through this in more detail. A lending specialist will talk it through with you too.
How fast can a small builder get funded?
Start with our online form. It takes about 60 seconds and won’t affect your credit score. A lending specialist calls you back to talk through your options. Unsecured loans can be approved and funded within hours in some cases. Property secured loans can fund in as little as 24 hours in some cases, and typically within a few days once valuation and documents are in.
What to have ready
- ABN, company details and director details
- Details of any property you or a guarantor own and what’s owing on it
- Recent business bank statements (for unsecured loans)
- Current job list with contract values and stage payment schedules
- What the money is for and how it will be repaid
Key facts
- Loan size: $20,000 to $5 million
- Secured: fast second mortgage, first mortgage or bridging against property you own; caveat loans in Victoria
- Unsecured: building companies trading six months or more, sized to turnover
- Speed: hours for some unsecured loans; as little as 24 hours for some secured loans
- Term: secured loans typically 1 to 12 months
- Suits: small builders doing houses, duplexes, townhouses, small subdivisions and small commercial jobs
Get the top up and keep building
A late payment or a job that’s run over doesn’t have to stop your business. Start your application in about 60 seconds and we’ll tell you quickly if we can help.
