Key Takeaways
- A construction line of credit is a flexible way for civil construction companies to get access to funds when they need it.
- It is especially helpful at supporting cash flow that’s impacted by late payments or progress payment billing cycles.
- Applying is easy. Just fill out our online form to get started. We’ll help you assess your borrowing needs and what line of credit is best for you.
- Requirements can vary depending on the lender and credit limit. For non bank lines of credit up to $500,000, lenders may only ask for a read only view of your business bank account and can be approved in 24 hours.
- For limits above $500,000, lenders may require a full documentat application.
- The time it takes to get approved depends on the lender and the line of credit. Banks usually take several weeks, while specialist or non bank lenders are much faster.
- Dark Horse Financial helps civil construction companies all over Australia find the right funding options, such as customised lines of credit.
A business line of credit can help businesses manage costs, cash flow, and support growth. For Australian civil contractors, getting reliable funding can mean the difference between being able to take on bigger projects with confidence or not being able to do them at all because of limited working capital.
In this guide, we’ll show you how to apply for a civil construction line of credit. We’ll cover the steps, who can apply, what documents you need, and some tips to help you get approved.
What Is a Construction Credit Line?
A civil construction line of credit is a type of revolving credit facility designed to support the unique cash flow needs of construction businesses. It lets a business borrow money up to a certain amount, use the money as needed, and pay it back or borrow more as required.
This flexibility makes it perfect for civil operators, who often have unpredictable income and need cash to pay for materials, labour, or equipment hire up front.
The following lines of credit are available to civil construction companies:
- Overdraft Facilities– Allows businesses to access more than what they have in their business accounts up to a pre-approved limit
- Equipment Finance Line of Credit– Helps businesses purchase equipment and machinery
- Trade Finance Line of Credit– Allows the purchase of material goods and the import of machinery
Why Civil Construction Businesses Need Lines of Credit
Here’s why businesses need civil construction financing like lines of credit:
Manage Cash Flow
Civil construction projects are often paid for in stages, and it can take weeks or even months to process milestone payments or progress claims. A business line of credit can help you make ends meet between bills and payments.
Fund Costs for New Projects
Getting ready for a new project often costs a lot of money up front, such as for labour, materials, moving equipment, insurance, and licencing. A line of credit lets you pay for these things without affecting your daily business.
Go After New Opportunities
When you have easy access to funds, you can take on new projects as they come up, bid competitively, and get better deals from suppliers and subcontractors.
Avoid Delays
Weather, changes in regulations, or equipment failure that cause unexpected costs or project delays can have a big impact on your schedule. A construction credit line acts as a buffer to keep operations from stopping.
Steps to Secure a Construction Credit Line
How can civil construction companies apply for credit lines? Here are the steps involved:
Step 1: Apply Online
Applying is easy. Simply fill out our online form to get started. We’ll get back to you quickly, and we’ll help assess your borrowing needs and financial position. We’ll help you select the right lender and line of credit with the best rates and terms possible.
Step 2: Application
Once you select a lender and line of credit, we’ll go ahead and submit your application for you.
Step 3: Review the Offer
Once your application is successful, you’ll receive a credit offer for your review.
Step 4: Activate and Use the Facility
Once the credit facility is in place, you can draw funds as needed. Many lines of credit allow you to draw as required, with interest only charged on the amount used.
Eligibility Requirements for Civil Construction Credit Lines
What do I need to apply for a civil construction line of credit? For non bank lines of credit up to $500,000 a number of lenders will only require a read only view of bank statements to assess serviceability. For limits above $500,000 lenders will typically require full document applications.
Different lenders cater for different credit scores, and lenders usually require outstanding ATO debt to be on a payment plan or less than 20% of gross annual turnover.
Make sure to contact us to find lenders that are willing to provide funding based on your financial position.
Required Documentation for Construction Line of Credit Applications
What documents are required for a construction credit line application? Not all lenders will require full documentation, especially for some types of lines of credit. For instance, many unsecured overdraft providers only require a read-only view of your business bank account.
For lenders that require documentation, the following is usually requested:
- Business Financials
- Current aged payables and receivables
- ATO ICA and ITA Portals
- Asset Register
- Commitment Schedule
- Director’s Asset & Liability Statement
How Long Does it Take to Get Approved for a Civil Construction Credit Line?
The time to get approved depends on the lender, the type of line of credit, and whether security is involved. Unsecured overdrafts can get approved within 24-48 hours, while equipment finance and trade finance can take a few days to weeks.
Using a finance broker like Dark Horse Financial can speed up the process and allow you to select a lender and product that can be approved within your required timeline.
Are Civil Construction Lines of Credit Easy to Obtain?
It’s not too hard for established civil contractors with a trading history, clear financials, and active project work to get a construction credit line.
But businesses with limited revenue and have a bad credit history may have a harder time getting finance. We can help you find the right lender who will give you credit based on your financial situation in those cases.
Choosing the Best Lender for Civil Construction Lines of Credit
At Dark Horse Financial, we help businesses choose the right lender that can save time, money, and stress. We’ll connect you with lenders that:
- Understand the construction industry and construction business loans
- Offer flexible redraw and repayment terms
- Approve quickly (especially if you have tight timelines)
Final Thoughts
You can get the working capital you need by applying for a civil construction line of credit. The right line of credit facility gives you control and confidence, whether you’re paying for project start-up costs, filling in cash flow gaps, or getting ready for growth.
Disclaimer: Loans and their accompanying benefits are available only to those who qualify for them and have been approved. Though we put a lot of care into writing this article, the information presented within is general and doesn’t consider your unique situation. It is not meant to serve as a substitute for professional advice, and you should not rely on it solely for any major financial decisions. You should always consult with a professional when you’re dealing with finance, tax, and accounting matters.
Get a Civil Construction Line of Credit for Your Business
Dark Horse Financial helps civil construction companies across Australia secure tailored finance solutions, including business lines of credit and business loans. Talk to us today to learn more about how we can help.
