Construction is one of the industries most dependent on working capital finance. Progress payment cycles, upfront material costs, subcontractor payments and the inevitable gaps between project completion and client payment create constant cash flow pressure - even for profitable, well-run construction businesses.
Construction projects are typically funded through staged progress payments - slab, frame, lock-up, completion. Between each stage, the business is funding materials, labour and subcontractors from its own cash. An overdraft bridges these gaps without disrupting operations.
Large jobs require significant upfront material investment - concrete, steel, timber, electrical components - often purchased weeks before any revenue arrives. A business overdraft funds these purchases and is repaid when progress payments clear.
Subcontractors typically expect payment within 30 days regardless of when the head contractor receives payment from the client. An overdraft ensures you can meet these obligations on time - maintaining relationships and avoiding disputes.
Many commercial contracts hold back 5–10% of the contract value as retention - released only after a defects liability period. This ties up significant cash for months after project completion.
OverdraftMe has settled construction overdrafts ranging from $40,000 for small trades businesses to $500,000 for larger contractors. The amount depends on your monthly revenue:
| Monthly revenue | Estimated overdraft limit |
|---|---|
| $30,000/month | $30,000 – $45,000 |
| $75,000/month | $75,000 – $112,000 |
| $150,000/month | $150,000 – $225,000 |
| $300,000+/month | Up to $500,000 |
Note: Construction businesses with managed ATO debts can still be approved. Progress payment delays often cause temporary tax debt - this is well understood by specialist lenders.
From our settled transactions page:
OverdraftMe has dedicated pages for specific construction trades:
OverdraftMe has settled construction overdrafts from $40,000 to $500,000 - approved and funded in as little as 24 hours. Free broker service, no tax returns required.
Get a free quote →Yes - construction businesses are among the most common users of business overdrafts in Australia. Cash flow gaps between progress payments are a perfect use case for a revolving overdraft facility.
Up to $500,000 depending on monthly revenue. Most lenders will approve up to 1–1.5x average monthly revenue. Use our borrowing calculator for an instant estimate.
No - most non-bank lenders assess construction businesses from 6 months of bank statements. No tax returns, BAS or financial statements required.
Same-day funding is possible in many cases. OverdraftMe has settled construction overdrafts in under 24 hours. A $60,000 construction business overdraft is one of our recent settled transactions.
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