Unsecured business loan · Construction
Unsecured business loan for construction
Construction finance is business lending structured around progress claims, retentions and plant purchases, covering equipment loans for machinery and working capital for the gap between paying subbies and being paid.
How a unsecured business loan works for construction
Unsecured lending in construction is usually about timing rather than shortfall: a claim is certified but not yet paid, and wages fall due on Thursday. A short unsecured facility repaid weekly can bridge that without tying up plant as security. Be aware lenders price construction cautiously, particularly where most revenue comes from one head contractor, and a short term means the repayment is sizeable. We will not put a business into a facility whose weekly repayment cannot survive one claim being held up.
The cash-flow pattern we plan around
Milestone claims certified and paid 30–60 days in arrears, with 5% retention held until practical completion and the end of defects liability.
What construction typically fund
- Excavators, telehandlers and site plant
- Utes and site vehicles
- Wages and materials between progress claims
- Retentions tied up until practical completion
- Bonding and insurance premiums
Unsecured business loan for construction: the numbers
| Typical amounts | $5,000 – $500,000 |
|---|---|
| Term | 3–36 months |
| Indicative rates | 9.9% – 29.5% p.a. |
| Repayments | Daily, weekly or monthly |
| Speed | 24–72 hours after documents are received |
| Documents construction usually need | ABN, GST registration and builder licence · 6–12 months of business bank statements · Contract or supplier quote for the plant being financed |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Construction equipment finance
Construction equipment finance is secured lending used to buy excavators, loaders, telehandlers and other plant, where the machine itself is the security and the term is typically 3–7 years with an optional balloon.
Progress-claim cash flow
Progress-claim cash flow is the gap between paying wages, subcontractors and suppliers on a construction job and receiving certified payment for that stage of work, commonly 30–60 days plus retention.
What is an unsecured business loan?
An unsecured business loan is finance provided to a business without a specific asset held as security. Approval is based on trading history, bank statements and cash flow. Most lenders still require a personal or director’s guarantee.
How is an unsecured business loan repaid?
Repayments are usually daily, weekly or monthly direct debits over 3 to 36 months. Some lenders quote a factor rate (total payable ÷ amount borrowed) rather than an annual interest rate, so always compare the total cost.
Who is eligible for an unsecured business loan in Australia?
Typical minimums are an active ABN, 6 to 12 months of trading and monthly turnover above roughly $10,000, but each lender sets its own criteria. Lyft Money checks fit across the panel before anything is submitted.