A kitchen or bathroom renovation is one of the most trade heavy jobs going. In a few weeks you might have a demo crew, plumber, sparky, waterproofer, tiler, cabinet maker, stone mason and painter all through the same room. You’re the one coordinating them, and usually the one paying them before the client’s next payment clears.
When a few jobs overlap, the numbers can get tight fast. Fast finance keeps the jobs moving.
Why renovators need fast finance
The renovation business model has some built in cash flow traps:
- Big supplier deposits. Cabinetry, stone benchtops and custom vanities often need a deposit at order and the balance before install.
- Fixtures up front. Tapware, basins, freestanding baths, appliances and tiles all land on your account well before handover.
- Staged client payments. A deposit, a payment at rough in, another at install and the final at completion. If a client delays sign off, your money sits.
- Variations. The client wants a bigger island or a niche in the shower. You pay for it now and invoice it later.
- Overlapping jobs. Three kitchens in progress at once can mean three sets of deposits out the door in the same fortnight.
What renovators use fast finance for
Funding supplier deposits and fixtures
The most common use is simply bridging the gap between paying suppliers and getting paid by clients. A cash flow loan for tradies is designed for exactly that kind of timing problem.
Paying the ATO
Renovators with good turnover can still end up with a large BAS or income tax bill, especially after a strong year. Clearing it with a lump sum loan is often cleaner than a long payment plan. See ATO debt loans for tradies.
A new van or showroom fitout
A clean van, a small display and good tools help you win better jobs. A business loan lets you buy them outright.
Taking on a bigger renovation
A full ensuite, laundry and kitchen package, or a run of bathrooms in a small townhouse block for a builder, can be bigger than anything you’ve done before. Finance lets you take it on without starving your other jobs.
Secured vs unsecured loans for renovation businesses
Secured options are for renovators who own property with equity: their home, an investment property or land. A fast second mortgage sits behind your existing home loan. If a property is clear of debt, a fast first mortgage can be used. A bridging loan suits a timing gap, like waiting on a property sale or a big final payment. These loans don’t need financials, bad credit is considered, and they can fund in as little as 24 hours in some cases. Terms typically run 1 to 12 months. In Victoria, a caveat loan is also available.
Unsecured options suit renovation businesses with an ABN and at least six months of trading. You’ll supply recent business bank statements, the amount is sized to your turnover, and some are approved and funded within hours.
Loans are for business purposes. Every one is priced on your circumstances, and our lending team finds the sharpest rate available for your situation.
Example: three kitchens in the same month
Example only. A renovation business in Brisbane has three kitchens starting within a fortnight. Each needs a cabinetry deposit and stone ordered straight away, adding up to about $70,000 in supplier deposits. Client deposits cover part of it, but the rest is tied up in two jobs waiting on final sign off.
The business has traded for three years with steady deposits. An unsecured cash flow loan of $60,000 covers the gap. As each kitchen is installed and signed off, the final payments reduce the loan until it’s cleared.
How quickly can a renovator be funded?
Start with our 60 second form. A lending specialist calls you back to go through the options. Unsecured loans can be approved and funded within hours in some cases. Property secured loans can settle in as little as 24 hours in some cases and typically within a few days once valuation and documents are in. Read how it works for the full process.
What to have ready
- ABN and business details
- Recent business bank statements (unsecured)
- Property details and approximate loan balance (secured)
- Current job list and expected client payments
- Supplier quotes or invoices you need to pay
Key facts
- Loan size: $20,000 to $5 million
- Secured: fast second mortgage, first mortgage or bridging against property you own
- Unsecured: six months trading, bank statements, sized to turnover
- Speed: hours for some unsecured loans; as little as 24 hours for some secured loans
- Suits: kitchen, bathroom, laundry and full home renovation businesses
Keep your renovations on schedule
When deposits are due before the client pays, a fast loan keeps every trade booked in. Start your application and we’ll tell you quickly if we can help.
