Quick answer
When a business needs to pay for materials, stock, staff or a deposit to secure a contract or opportunity quickly, a private loan secured by property can provide funds in days. Lenders look at the property's equity and at how the opportunity itself repays the loan, such as contract payments or stock sales, so a signed contract or purchase order strengthens the application.
Key points
- Funds the upfront cost of winning or delivering work
- A signed contract or purchase order is strong exit evidence
- Interest can be capitalised until contract payments arrive
- Size the loan to the gap, not the whole contract
- Loan size
- $20,000 to $5,000,000
- Speed
- Same day possible to $250k
- Exit
- Contract payments or stock sales
- Typical term
- 1 to 12 months
Not every urgent loan is about a problem. Some of the best reasons to borrow quickly are opportunities: a contract you’ve just won, a supplier offering a big discount for a bulk order, or a deposit needed to lock in work. The catch is that opportunities rarely wait for a bank’s approval process.
Typical opportunity deadlines
- A new contract that needs materials, equipment or extra staff before the first progress payment
- A stock deal where a supplier offers a substantial discount for a large order paid this week
- A tender deposit or bond due on signing
- A business or asset purchase that a competitor is also chasing
- Seasonal stock that must be ordered months before the selling season
How lenders look at opportunity funding
The property is still the security, but with an opportunity the exit is usually the opportunity itself. A lender will want to see that the money comes back, and when.
| Evidence | Why it helps |
|---|---|
| Signed contract or letter of award | Proves the work and its payment schedule |
| Purchase order from your customer | Shows demand for the stock you’re buying |
| Supplier quote with discount terms | Confirms the cost and the saving |
| Cash flow forecast for the job | Shows the gap and when it closes |
| Track record on similar jobs | Builds confidence you can deliver |
Sizing the loan properly
A common mistake is borrowing the whole contract value. You only need to fund the gap between money going out and money coming in.
Illustrative example: a $600,000 fit-out contract pays 30% on completion of stage one, which is eight weeks away. Materials and labour before that payment come to $210,000. The business has $40,000 available. The gap is $170,000, so a loan of around $180,000 to $200,000 with a buffer is about right, not $600,000.
Structuring around contract payments
With capitalised interest, there are no repayments until the contract pays. Some owners agree with the lender that each progress payment partially repays the loan, which reduces the total cost. The exit plan checker helps you test whether expected payments cover the loan with room to spare.
Know the risks
Opportunity loans fail when the opportunity doesn’t pay as expected: a customer pays late, a variation is disputed, stock sells slower than planned. Protect yourself by borrowing conservatively, keeping a term buffer, and making sure the property isn’t so highly leveraged that a delay becomes a crisis.
A worked example: the end-of-line stock buy
A Gold Coast homewares wholesaler was offered a container load of end-of-line stock from an overseas supplier closing down its range. The price was a fraction of normal wholesale, but payment was due within ten days and the stock would go to a competitor otherwise. The total needed was $280,000.
The owner’s bank said a stock purchase of that size needed a credit committee and three months of management accounts. The business had trading history but its overdraft was fully drawn. The owner held a commercial unit in an industrial estate at Molendinar, worth about $850,000 with a small loan against it.
A private lender took a second mortgage over the unit and settled in six business days. The lender liked the deal because the exit was obvious and measurable: the stock had firm orders from three retail customers covering most of its value, and those orders were shown in writing. The loan ran for five months and was repaid as the retailers paid their invoices.
Testing the opportunity before you borrow
A short-term secured loan amplifies a good opportunity and a bad one equally. Before applying, check:
- Is the margin on the deal comfortably larger than the total cost of the loan, including fees?
- Do you have written orders, contracts or offers that support the repayment?
- What happens if the customer pays late, or the stock sells slower than planned?
- Does the property owner, if it’s a different entity, understand the risk?
- Is there a cheaper source of the same money, such as supplier terms or a customer deposit?
If the answers hold up, speed is worth paying for. If they don’t, the cheapest loan is the one you didn’t take out.
Don’t miss the window
Tell us about the opportunity, the amount, the deadline and the property you can offer. A person on our desk will come back quickly with whether it can be funded in time. There’s no credit check when you first enquire, and your details stay with us.
Attach the key numbers in your enquiry (contract value, payment dates, costs) and we can move faster. See if you qualify, or look at fast unsecured options for smaller amounts, then get in touch.
Frequently asked questions
Can I borrow against a contract instead of property?
Contract-based finance exists, but it's usually slower and depends on the customer's credit. If you own property, a secured private loan is often quicker and more flexible, with the contract payments as the exit.
How much should I borrow for a contract?
Map the contract's cash flow: when you pay out for materials and labour, and when progress payments come in. The loan should cover the deepest point of that gap plus a buffer, not the whole contract value.
What if the customer pays late?
Build that risk into the term. If payments are due in 60 days, a four- to six-month term gives room. Talk to the lender early if a payment is delayed.
Is a stock purchase a business purpose?
Yes. Buying stock, materials or equipment for the business, or paying a deposit on a business contract, are clear business purposes.