Quick finance for a big order: funding stock before the customer pays

Why can a big order be a cash flow problem?

It’s one of the best problems a business can have — and one of the most dangerous. A large order means buying stock or materials, sometimes hiring extra hands, and carrying all of it until the customer pays. For a business used to smaller jobs, that upfront outlay can be more cash than it has.

Turning the order down means losing the profit and possibly the customer. Taking it on without funding risks paying suppliers late, stretching wages and damaging the relationships the business depends on. Quick finance for a large order sits between those two outcomes.

How do you know it’s worth funding?

Before anyone talks about loans, do two sums in dollars:

1. The profit on the order — the price, less stock, materials, freight, extra labour and any other direct costs.
2. The total cost of finance — every dollar you’d repay above the amount borrowed, including fees, over the time until the customer pays.

If the first figure comfortably exceeds the second, and delivering the order won’t squeeze the rest of the business, funding it usually makes sense. If the margin is thin, the finance can eat the profit — and a late payment could turn a good order into a loss. Our page on speed versus cost walks through this comparison.

What makes a big-order file move quickly?

Evidence	Why it helps
Signed purchase order or contract	Shows the revenue is real, not hoped for
Supplier quote or pro-forma invoice	Shows exactly what the money pays for
Customer’s payment terms	Sets the loan term and repayment date
Customer track record	A reliable payer reduces risk
Linked bank data	Shows how the business normally trades
Delivery timeline	Shows when the invoice can be issued

With that on hand, a specialist can size the loan to the order and time the repayment to the customer’s payment. Got a purchase order in hand? Start your enquiry and attach it when asked.

How should you structure the finance?

• Size it to the outlay, plus a small buffer. Include freight, duty and GST where you’ll pay them upfront.
• Match the term to the payment date. If the customer pays 60 days after delivery and delivery takes 30 days, a 90-day horizon is the starting point — with room for a slip.
• Check the repayment rhythm. Frequent debits during the weeks before the customer pays can squeeze cash further; see our guide to daily and weekly repayments.
• Confirm early repayment terms in case the customer pays early.
• Think about repeat orders. If big orders are becoming normal, a line of credit may suit better than a new loan each time. See working capital.

Unsecured options typically run from $5,000 to $500,000 and are sized on turnover and bank statements. For larger orders, or where the order is large compared with your turnover, property security can make the amount workable — up to $5m.

What are the risks to plan for?

• Late payment. The single most common problem. Build in a buffer.
• Delivery delays. A supplier running late pushes your invoice date back.
• Disputes. A quality issue can hold up payment. Keep clear records of what was ordered and delivered.
• Concentration. If one customer becomes most of your revenue, a problem with them becomes a problem for the whole business.

Speeding up invoicing helps too — e-invoicing can get invoices into a customer’s system faster. Our guide to e-invoicing explains how.

An illustrative example

Illustrative only. A small furniture manufacturer wins an order to fit out the common areas of a new apartment building. Timber, hardware and upholstery must be bought now; the builder pays 45 days after installation, about 75 days away.

The owner works out the profit on the job and compares it with the total cost of a short-term loan over roughly three months. The margin is comfortable. She sends the builder’s signed purchase order, the timber supplier’s quote and her linked bank data. The amount is sizeable against turnover, so she uses her home as security; the loan sits within the $20k to $250k band where same-day funding is possible once the file is complete. Repayment is set for shortly after the builder’s payment date, with early repayment allowed.

What if the customer is new to you?

Big orders from new customers are exciting and carry extra risk, because you have no payment history to go on. A few simple checks help both you and the lender:

• Look them up. Check the customer’s ABN and business name on ABN Lookup, and make sure the entity on the purchase order matches.
• Ask for trade references from other suppliers they deal with.
• Consider a deposit. Asking for a deposit on a large first order is normal in many industries, and it reduces the amount you need to finance.
• Stage the delivery and invoicing. Delivering and invoicing in parts means you get paid sooner and your exposure is smaller.
• Get the terms in writing — price, delivery dates, acceptance criteria and payment terms.

A lender will look more favourably on an order that’s been sensibly structured, and you’ll sleep better. If the customer is reluctant to accept any of these basic protections on a very large first order, treat that as useful information.

Ready to say yes to the order?

A big order should be a win, not a worry. Send the 60-second enquiry and a real person will help you structure finance around the order, not the other way round. There’s no credit check when you first enquire, and your details go to one specialist rather than being shopped around to a heap of lenders. Accurate figures on the order, the margin and the payment terms will let us move at the pace the customer expects.

Check my options →