Steel fabrication sits at the sharp end of construction cash flow. You buy tonnes of steel, pay to have it cut, drilled, welded, galvanised or painted, deliver it, crane it in, and then wait for the builder’s progress claim to go through. On a small commercial job or a steel framed home, that can be tens of thousands of dollars out the door before you see a cent.
When steel prices jump or a builder pays late, the squeeze gets real. Fast finance gives you room to breathe.
Why steel fabricators and welders need fast finance
The money pressures in fabrication include:
- Steel price swings. Quote a job at one price and by the time you order, steel has moved. Buying early protects margin but needs cash.
- Big material orders. Universal beams, columns, RHS, SHS, plate and purlins for a small warehouse or a run of townhouses add up quickly.
- Outsourced finishes. Galvanisers and powder coaters usually want payment on collection.
- Workshop overheads. Rent or mortgage on the shed, power for welders and machinery, consumables like gas and wire.
- Progress claims and retention. Builders pay on claim cycles and often hold retention until practical completion or beyond.
- Install costs. Crane hire, EWP hire and site crews for installation.
What fabricators use fast finance for
Locking in steel for a job
Paying for the full steel order at quote time protects your margin. Building materials finance is set up for large supplier orders like this.
Machinery and workshop upgrades
A plasma table, press brake, beam line or new welders can lift output and cut labour costs. See equipment finance for tradies for funding machinery with a fast loan.
Waiting on progress claims
When builders pay 30, 45 or 60 days after claim, or hold retention, your cash is sitting in their account. Progress payment gap finance covers that time.
Clearing ATO debts
A busy workshop can run up a big BAS or PAYG bill. A lump sum loan clears it and gets you back on track.
Taking on bigger structural work
A small warehouse, a factory unit or a set of commercial canopies can be a step up from balustrades and residential beams. Finance lets you take on the materials and labour without risking the rest of the business.
Secured vs unsecured fabrication finance
Secured loans suit fabricators who own property: their home, an investment property, their factory unit or land. A fast second mortgage, a fast first mortgage or a bridging loan can fund in as little as 24 hours in some cases. No financials are needed, bad credit is considered and terms typically run 1 to 12 months. In Victoria a caveat loan is also an option.
Unsecured cash flow loans suit fabrication businesses with an ABN, at least six months of trading and recent business bank statements. The loan is sized to turnover, and some are funded within hours.
Loans are for business purposes. Every loan is priced on your circumstances, and our lending team finds the sharpest rate available for your situation.
Example: a fabricator who won a warehouse job
Example only. A steel fabricator in Newcastle wins the structural steel package for two small warehouse units. The steel order is around $110,000, galvanising another $25,000, and the builder pays 45 days after each claim. The fabricator is worried steel prices will rise before ordering.
The business owns its factory unit with good equity. A fast second mortgage over the unit for $150,000 pays for the steel and galvanising straight away. Progress claims repay the loan as the job moves through fabrication and install.
How fast can a fabricator get a business loan?
Fill in our 60 second form and a lending specialist will call you back. Some unsecured loans are approved and funded within hours. Secured loans can fund in as little as 24 hours in some cases, and typically within a few days once valuation and documents are in.
What to have ready
- ABN and business details
- Recent business bank statements (unsecured)
- Details of property you own, including a factory unit (secured)
- Steel supplier quotes or machinery quotes
- Contracts, progress claim schedule and retention held
Key facts
- Loan size: $20,000 to $5 million
- Security: home, investment property, factory unit or land, or unsecured
- Speed: hours for some unsecured loans; as little as 24 hours for some secured loans
- Term: secured loans typically 1 to 12 months
- Suits: structural, architectural and general steel fabricators and welders
Lock in the steel, keep the shop busy
Don’t let a steel price rise or a slow claim eat your margin. Start your application and we’ll tell you quickly if we can help.
