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Government contracts
FOR GOVERNMENT CONTRACTS
Costs first. Payment second.
You won the contract. Now you have to hire, buy and deliver before the first invoice can go in. We look at the contract and your cash flow, then find funding that bridges the start-up gap.
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Funding for hiring and start-up costs
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Structured around the contract milestones
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Major, non-major and private lenders
Make an enquiry
A broker will call you to discuss your options. No obligation.
SOUND FAMILIAR?
Government pays. Just not first.
Hiring starts weeks before invoicing. Staff need to be recruited, inducted and paid.
Payment depends on delivery. You can only invoice once milestones are met.
Payment terms vary. Commonwealth policy aims to pay small business invoices within 20 days for contracts up to $1 million, but other agencies differ.
The contract is bigger than the cash in your account. Winning work can strain cash before it improves it.
Government pays well. Getting to invoice one is the gap. Once you’re invoicing, government usually pays on time. It’s the weeks before that hurt.
Your ABN is new, but the contract is signed. Many lenders want two years of trading. Some will look at a signed contract instead.
HOW WE HELP
Funding shaped around the contract.
Structure
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Working capital for the start-up phase
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Funding against approved invoices
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Equipment finance for contract assets
Lender fit
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Lenders who value government contracts
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Options for a newer ABN with a signed contract
Timing
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Set up when the contract is signed
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Mapped to milestones and invoice dates
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Reduced as payments start flowing
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Clear on fees before you sign
Tomorrow
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Ready for the next tender or contract extension
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Funding that can scale with contract value
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Set up so a new contract doesn’t mean a new scramble
WHAT IT CAN LOOK LIKE
A two-year contract with a slow start
Illustrative scenario
A facilities business wins a two-year state government contract. It has to hire twelve people and buy equipment before the first monthly invoice. The owner talks through equipment finance for the assets and a working capital facility for the first three months of wages, reduced once payments start arriving. Illustrative example only, not a real client. Every business is assessed on its own circumstances and lender criteria.
QUESTIONS
Common questions
Can a government contract help my application?
A signed contract can show a lender where the money will come from. Lenders still look at your business, your experience and your cash flow.
How fast does government pay?
It varies. Commonwealth policy aims to pay small business suppliers within 20 days for contracts up to $1 million. State, local and other agencies set their own terms. Check your contract.
What do I need to have ready?
Usually your ABN, the signed contract, a cost and milestone schedule, recent business account statements and ID for the directors. Your broker confirms the list.
How quickly does the Queensland Government pay small businesses?
Queensland’s On-time Payment Policy sets 20 day payment terms for eligible small business suppliers. Check whether your contract qualifies.
Do council or federal contracts count?
Often, yes. Lenders look at the contract, who pays and your ability to deliver. Local, state and federal government contracts can all help.
What does it cost and how do you get paid?
Costs depend on the lender, the product and your business. Your broker explains every fee and cost before you decide. We may be paid a commission by the lender or charge a fee, and we tell you before you apply. Subject to lender approval; fees and terms apply.
Tell us what’s going on.
A short call is usually enough to see whether funding could help now, and how it could be set up for what comes next. No obligation. Business purposes only. Subject to lender approval; fees and terms apply.