QLD Engineering Business Secures $236,993 Loan in 10 Days | Go For Broker

Business Loans, Working Capital, Bank Declined, Commercial Property, Case Study

Discover how Go For Broker helped a QLD engineering business secure a $236,993 working capital facility, settled in 10 days, after a temporary revenue dip and a remote security property led banks to decline despite the business having $750,000 of contracted work already lined up.

$750,000 worth of contracted work was already lined up. The bank looked at last quarter's revenue dip and said no anyway - because a bank statement only shows where a business has been, not where it's contracted to go.

Revenue is a backward-looking number by definition - it tells you what already happened. A signed contract is a forward-looking one. Most standard lending criteria weigh the first heavily and barely look at the second, which is exactly how a business with $750,000 of confirmed work ahead of it can still get declined.

First, Why the Banks said No

Both reasons for the decline were about what the file showed, not what the business had already secured.

Recent revenue had dipped. A temporary cash flow tightening showed up clearly in recent financials - the kind of number a bank's standard assessment weighs heavily, regardless of what's coming next.

The security property was remote. On top of the revenue dip, the property was in a remote location, and many private lenders weren't comfortable lending enough against it - narrowing the field further before the pipeline of work was even considered.

Our Thinking

This wasn't a business in decline. It was a business between jobs. The client already had around $750,000 worth of work in the pipeline, and making sure lenders understood exactly what was coming - not just what the last few months had shown - was the key to getting this deal done.

The Numbers

Net Loan Amount:$200,000

Gross Loan Amount:$236,993

Term:12 Months

Rate:23.4% per annum (1.95% monthly on balance)

Settlement:10 Days

Security:Property, remote location, multiple entities involved

What people miss

Standard lending metrics are built almost entirely on historical revenue, because history is easy to verify and a signed contract theoretically could fall through. But a $750,000 pipeline of confirmed work is a real, forward-looking asset - arguably a stronger signal of where the business is heading than a few months of dipped revenue. The difference here wasn't the strength of the business. It was finding a lender willing to weigh the contracts as heavily as the bank statements.

The point isn't that one is better

This facility isn't cheap money, and it wasn't meant to be a permanent fixture. It bridged a specific, temporary gap between a revenue dip and a pipeline that was already contracted and coming. Once that work converts to revenue on the books, this is exactly the kind of facility that gets refinanced into cheaper, standard terms.

The point isn't that private lending sees more clearly than a bank in general. It's that in this particular window - a temporary dip sitting in front of $750,000 of confirmed work - a bank's process wasn't built to weigh the two against each other the way this deal needed.

The Outcome

• $236,993 gross facility ($200,000 net) secured, settled in around 10 days

• Business able to fulfil its contracted work without cash flow holding it back

• Revenue climbing again as the pipeline converts

• Client back on track, with pressure on the business relieved

Could Your Clients Benefit from a Similar Strategy?

If you're an accountant, adviser, or agency working with a client whose recent financials don't reflect the work already locked in - a temporary dip, a remote security property, or simply a bank that's only looking backward - this case shows what's achievable when a lender is willing to weigh a signed pipeline as heavily as a bank statement. For businesses and SMEs across Australia, confirmed future work is a real asset, even when the numbers behind it haven't caught up yet.

Whether the underlying pressure is a short-term revenue dip, a property in a location that narrows the lender pool, or a gap between contracted work and the cash flow to deliver it, a broker with access to non-bank and private lenders - able to present the pipeline as clearly as the financials - can bridge the gap fast enough for the business to actually deliver on what it's already won.

FAQs

Can I get business funding if my revenue has recently dipped but I have contracts lined up? Yes - some private lenders will assess confirmed future work, such as signed contracts or work orders, alongside recent financials, rather than declining purely on a temporary revenue dip.

What if my security property is in a remote or regional area? Some lenders will still consider remote or regional property as security, though the pool of willing lenders narrows - a broker with a wide panel can help find one still willing to assess the deal on its full merits.

How fast can working capital funding settle when I have a tight contract deadline? Timeframes vary by lender and complexity, but with clear security and a well-presented case, working capital facilities have in some cases settled within around 10 business days.