Working Capital Loans for Mining Contractors

Key highlights

• Fund crews, fuel and plant costs while progress claims are assessed
• Cover mobilisation and ramp-up before a contract starts paying
• Manage retentions and slow head-contractor payment terms
• Invoice finance advances a large share of approved claims quickly
• A dedicated broker compares 80+ lenders on one application

The contractor's cash-flow squeeze on site

As a mining contractor, you carry the cost of a job long before you are paid for it. Crews are on wages from day one, plant burns fuel and consumables continuously, and mobilisation to a remote site is expensive up front, yet payment depends on measured progress claims that a principal or head contractor assesses and then pays on 30 to 60 day terms, sometimes with retentions held back. A single disputed or delayed claim can leave a contractor carrying weeks of costs on its own balance sheet. That is a classic working-capital gap. A working capital loan gives you the liquidity to keep crews and plant productive on site while the claims process runs its course.

What mining contractors put the funding toward

For a contractor, working capital goes straight into delivery. It funds crew wages and superannuation, fuel and lubricants for plant, and the spares, tyres and consumables that heavy earthmoving and drilling consume quickly. It covers mobilisation and demobilisation, camp and travel costs for FIFO teams, and the ramp-up outlay when a new contract starts before the first claim is paid. It can bridge the impact of retentions and slow payment terms, cover compliance and safety spend, or manage a tax bill without pulling cash off the job. Used well, it means a delayed claim or a slow-paying head contractor does not force you to stand down crews or park plant you need working.

Finance products that fit a contracting model

Because contractor income is tied to claims and can be lumpy, flexible structures suit best. Invoice finance is often the standout, advancing a large portion of each approved progress claim within a day or two so you are not carrying weeks of costs while a principal settles. A business line of credit or overdraft gives an on-demand cushion for mobilisation and running costs, with interest only on the balance used. For a defined purpose, an unsecured business loan up to around $500,000 offers predictable repayments, while larger mobilisations may be structured as a secured facility against property or equipment. A dedicated broker can combine these to fit your contract pipeline.

What lenders look for in a contractor

Lenders generally want an active Australian ABN, a trading history often around 6 to 12 months at minimum, and consistent turnover through bank statements. For contractors, evidence of signed contracts, forward work and reputable principals helps offset the lumpiness of claim-based income. Low-doc options may use bank statements or BAS rather than full financials, which suits contractors focused on site delivery. Established contractors with equity may access larger secured facilities. A clean ATO and credit position improves pricing, though tax-debt funding can be arranged, and newer contractors can still qualify subject to criteria. Because contract profiles differ, all limits and rates remain indicative until a lender assesses your specific file.

Funding amounts, speed and pricing

Indicative funding across the panel runs from around $5,000 up to $5 million, with unsecured facilities typically capped near $500,000 and larger contract-scale amounts usually secured against property or equipment. Rates depend on product and profile: stronger secured facilities may start from around 7.49% p.a., while unsecured and short-term products are priced higher based on turnover, term, security and credit profile, and all pricing is indicative and subject to assessment. Terms commonly run three months to five years. For eligible applicants, same-day pre-approval and funding within 24 to 48 hours may be available, which is valuable when mobilisation costs land or a machine breakdown threatens to hold up a claim on a remote site.

Why one broker and 80+ lenders makes sense

Mining contractors are stretched across site delivery, safety and logistics, with no time to compare a panel of lenders, and applying individually can mark your credit file. Overdrive Business Loans gives you a single dedicated broker, Simon Kendrick, who takes one application and compares more than 80 banks and non-bank lenders. He understands how progress claims, retentions and mobilisation costs read to lenders, and he presents your business so its strengths show, matching you to facilities that flex with the claims cycle. You get plain-English advice, a real comparison of the options, and one point of contact who manages the process while you stay focused on the work.

If mobilisation costs, retentions or slow-paying principals are straining your contracting business, see what is available. Overdrive Business Loans offers an obligation-free quote, and Simon Kendrick will compare 80+ lenders from one application. The initial check is a soft credit enquiry only, so it will not mark your file, and for eligible applicants funding may be arranged within 24 to 48 hours. You will get a clear, plain-English view of what suits your operation and indicative pricing, with no obligation to proceed. Contact Overdrive Business Loans today and keep your crews and plant working through the claims cycle.