Working Capital for Suppliers: How to Fund Your Next Big Order Without Touching Your Home Equity | Finlease

There’s a specific kind of frustration that comes with winning a big contract and not being able to move on it.

You’ve done the hard part. The client said yes. The orders are confirmed. The revenue is real. But you need stock – or you need to pay an overseas supplier upfront – and the cash isn’t sitting in your account waiting to be spent.

This is where a lot of suppliers get stuck.

They ask clients for large deposits to fund the product. They watch stock run low before the sale comes in. They approach their bank and find the facility is stretched, or the approval process will take three weeks they don’t have. And if they own a home, there’s always the quiet suggestion that maybe they should use it as security.

There’s another way.

What a working capital facility actually is

A working capital overdraft gives you a pre-approved facility you can draw on when you need it. Think of it like a large business credit card – but sized for real supplier transactions.

The facility sits ready. You draw what you need to place an order, pay a supplier, or fulfil a contract. Interest accrues only on what you’ve drawn, not on the full facility amount. When your client pays, you pay it back. The facility resets and it’s ready for the next order.

You’re not pledging your home. You’re not waiting three weeks for a bank to decide. You’re moving at the speed your business actually operates.

The situations we see most often

If any of these sound familiar, a working capital facility is worth a conversation:

Your stock runs low before the sale comes in and you can’t take the order. You’re asking clients for large deposits just to fund the product you need to supply. Your bank facilities are stretched and you’re not getting the support you need. A big contract lands but you can’t confirm it fast enough.

These aren’t signs of a struggling business. They’re signs of a growing one that’s outpaced its current funding structure.

What it costs, in plain terms

Pricing is based on your facility size, your draw period, and your business turnover. As a guide:

Businesses with higher turnover generally qualify for lower rates. Your Finlease broker will give you a personalised figure based on your actual numbers, no obligation, no commitment.

How it worked for one supplier

A machinery supplier came to us with nine confirmed pre-orders for equipment – approximately $540,000 in committed revenue. Each order required an upfront deposit paid to their overseas manufacturer.

The problem: they’d been self-funding orders until now, and this volume was too large to carry. Their bank had capped further lending and wasn’t able to move quickly enough. They also didn’t want to ask their clients for large deposits and risk losing the sale.

We arranged a $300,000 working capital overdraft, approved within 24 hours. The supplier placed the full manufacturing order immediately, locking in the production run and the delivery timeline for all nine customers at once.

All nine orders were fulfilled within eight weeks. Total facility cost: approximately $10,000, recovered within the sale price of the equipment.

“Finlease understands the sales process, responds quickly, and helps customers move forward with confidence. It’s been a very positive partnership for SEMCO and one we value.” – Steve, SEMCO

If you’re a supplier sitting on confirmed orders you can’t yet fund, speak with a Finlease broker. We’ll give you a real number for your situation and let you decide if it makes sense.

Call 1800 358 658 or get in touch.

Indicative costs only. Speak with your Finlease broker for a personalised assessment. T&Cs apply. ACN 003 752 636 | ACL 390584.