Written and reviewed by Corey Marino Founder & Finance Broker, FBAA member M-354085 · Diploma-qualified finance broker
Last reviewed 18 August 2026 · About Corey →
Answer first
The short answer
How to prepare working-capital finance for a confirmed contract or purchase order, including margin, timing, supplier and customer evidence.
- Connect the order to repayment
- Calculate margin after every cost
- Match draw timing to supplier milestones
On this guide
A confirmed order can create a funding need before it creates cash. Suppliers may require payment for stock, labour or mobilisation weeks before the customer pays. The order supports the purpose, but a lender still assesses delivery risk, margin, customer quality and how repayment occurs.
The answer first
Prepare the signed order or contract, supplier quote, delivery milestones, gross-margin calculation, customer payment terms and a week-by-week cashflow. Show exactly what the facility pays for and the source and timing of repayment. Separate confirmed facts from forecasts.
Prove the transaction chain
The clearest proposal connects five items:
- a real customer obligation;
- the goods or work required to fulfil it;
- verified supplier and operating costs;
- delivery and invoicing evidence; and
- customer payment that repays or reduces the facility.
If any link is uncertain, identify it. A cancellable expression of interest is not equivalent to an unconditional purchase order. A gross sales value is not available repayment cash until direct and overhead costs are allowed for.
Calculate the real margin
Start with contract revenue, then deduct stock, freight, wages, subcontractors, insurance, duties, platform costs and finance costs. Allow for rework, delay and customer retention amounts where relevant. The remaining margin must be realistic after tax and ongoing overheads.
Funding the whole supplier invoice may be inappropriate if the business cannot absorb a cost overrun. A buyer contribution can align risk and reduce the amount borrowed, but it must leave enough operating buffer.
Match the facility to timing
A term loan provides a fixed amount and repayment schedule. A line of credit can fund repeated draws and repayments. Invoice finance may become relevant after an eligible invoice is issued. Trade or purchase-order finance can focus more directly on a supplier-to-customer transaction. Availability and structure depend on the business and documents.
Map when each dollar is required. Borrowing the full amount too early can add cost; drawing too late can miss the supplier deadline.
Customer and supplier concentration
A major recognised customer can strengthen confidence in payment, but concentration creates risk if that one customer delays or disputes. Lenders may verify the order and assess cancellation, set-off and acceptance terms. They may also verify the supplier, particularly where payment is overseas or bank details recently changed.
Never pay changed bank details based solely on email. Confirm through an independently sourced contact.
Documents to prepare
- signed purchase order or contract and variations;
- customer payment and acceptance terms;
- supplier quote, invoice and payment deadline;
- stock or work specification;
- gross-margin worksheet;
- 13-week cashflow;
- current financials, BAS and bank statements;
- aged receivables and payables; and
- evidence of similar completed work.
The business.gov.au loan application guide recommends clarifying purpose, amount, repayment and supporting figures before applying. That discipline is particularly important when one contract drives the request.
Our confirmed wholesale-order outcome shows a factual $65,000 historical settlement. It does not mean every order supports unsecured finance or the same terms.
X Lend assesses the evidence and compares suitable lender pathways before an authorised submission. The lender makes the approval decision.