Business loans for NZ builders, tradies and construction firms

Construction runs on other people’s payment schedules. You order materials, pay staff weekly, hire plant and pay subcontractors — then wait for a progress claim to be approved and paid, often on the 20th of the following month, often with a retention held back. For builders and tradies across New Zealand, from Christchurch rebuild specialists to Auckland apartment fit-out crews, managing that gap is half the job.

Where do construction cash gaps come from?

Cause	Effect
Progress claims on 20th-of-month terms	Six to eight weeks between work and payment
Retentions	A share of every payment held until completion
Variations	Extra work done before it’s agreed and paid
Materials price swings	Quotes fixed, costs rising
Main contractor delays or failure	Payments late or lost
Weather	Days lost but wages still paid
Tax	GST on claims paid, PAYE on wages

What funding suits builders and tradies?

Short-term unsecured loan — covers a specific gap, such as materials for a new job or waiting on a large claim.

Line of credit — draw for materials and wages, repay as claims are paid. Ideal for firms with several jobs on the go.

Invoice finance — advance against issued claims and invoices.

Equipment finance and vehicle finance — excavators, scaffolding, tools, utes and trucks, without draining cash.

Property-secured loans — larger contracts, retention build-ups or tax arrears, from $20,000 to $5,000,000.

Funding a big new contract

Winning a larger contract is often when cash flow gets tightest. Before the first claim is paid, you may need to hire, buy materials and set up the site. Our page on new contract funding explains how to size and structure mobilisation finance.

What lenders look for in a construction business

Recent bank statements showing regular claim payments; a list of current jobs, contract values and claim schedules; retentions held and when they’re due; whether GST and PAYE are current; experience and track record; and equipment and vehicle finance already in place. Lenders are generally comfortable with construction, but they look carefully at concentration — one main contractor providing most of your work is a risk they’ll ask about.

If you’d like to know where you stand, see if you qualify in about a minute — no credit check is run at that stage.

When a main contractor fails

New Zealand has seen a number of construction company failures, and subcontractors are often left unpaid. If it happens to you, act fast: get advice about your position as a creditor, contact your suppliers and Inland Revenue early, and look at short-term or property-backed funding to keep wages, tax and suppliers covered while you replace the lost work. Our urgent business funding page covers the fastest routes.

An illustrative example

An illustrative Christchurch residential builder runs four house builds at once. Each claim is paid on the 20th of the following month, and a retention is held on each. Between materials, a crew of ten and subcontractors, the business regularly spends heavily before claims land. A revolving line of credit, sized to cover about six weeks of costs, lets the builder fund each stage and repay as claims are paid, without delaying jobs.

Practical cash tips for builders

• Claim promptly and accurately at every milestone.
• Agree variations in writing before doing the work.
• Track retentions and chase release dates.
• Ask for deposits on residential jobs where appropriate.
• Keep GST and PAYE money separate from operating cash.

What lenders ask builders and tradies

Expect to be asked for a list of current jobs, the contract value of each and the claim schedule; the total retentions held and release dates; your main contractors or clients and how reliably they pay; and the plant and vehicles you own or finance. Lenders also want to see GST and PAYE paid on time. Builders who can show a healthy pipeline and sensible job pricing usually find funding straightforward, even when cash in the account is tight.

A quick checklist before you enquire about construction and trades

Write down the amount you need and exactly what it will pay for. Note the date the money is needed and the date you expect to repay it, and name where that repayment will come from. Download your last three to six months of business bank statements, check that your GST and PAYE filings are up to date, and have your NZBN and photo ID handy. If you’re offering property, jot down its address, a realistic value and what’s still owing on it. Ten minutes spent on this list before the first call can save days later, because the person helping you can go straight to the options that genuinely fit rather than chasing missing details.

Keep the job moving

If materials, wages or a big claim are squeezing your cash flow, let’s look at the fastest way to keep the job moving. There’s no credit check when you first enquire, your details aren’t handed to a pile of lenders, and a real person who understands construction will call you.

Please give accurate details on the form — your turnover, the amount, what it’s for and any property — so we can match you correctly first time. Ask about construction funding.