Quick answer
Cabinet makers usually borrow for workshop machinery such as CNC routers and edgebanders, for board and hardware stock between the client's deposit and final payment, and for builder accounts that pay 30 to 60 days after install. Equipment finance suits machinery, a line of credit or working capital loan suits the job cycle, and invoice finance suits builder work. Banks favour established workshops with property; non-bank lenders help faster with less paperwork.
Key points
- A kitchen job can tie up board, hardware and labour for weeks before the balance is paid, so cash flow follows your install calendar
- In Victoria, a domestic building contract of $20,000 or more caps the deposit at 5%, which matters if your kitchen work falls under that law
- Since 1 July 2024, engineered stone benchtops have been banned nationally, which changed benchtop supply and pricing for kitchen jobs
- Machinery bolted into a leased factory may need a landlord waiver before an equipment lender will fund it
Why would a busy cabinet maker with a six-week order book need to borrow? Because a kitchen is paid for at the end and built at the start. The board, the hinges, the runners, the benchtop and the installer’s wages all leave the account before the balance arrives. Line up three or four kitchens and a builder’s joinery package at once and a profitable workshop can run short of cash in a good month.
Finance for joinery businesses is mostly about matching money to that build cycle, plus funding the machinery that lets a small workshop compete.
How does a cabinet making job use cash?
Follow one kitchen through the workshop and the gap becomes obvious.
- Quote accepted, deposit taken. For kitchen renovations, the deposit is usually a modest share of the price.
- Materials ordered. Melamine and veneered board, edging, drawer systems, hinges and handles. Many suppliers want payment on order or within 30 days.
- Benchtop measured and ordered. Stone, porcelain or timber tops are often a separate supplier with its own deposit.
- Cutting, edging and assembly. Workshop wages, power and machine time.
- Install. Installers’ time and sometimes a plumber and electrician to reconnect.
- Balance paid. Often days or weeks after install, once the client is happy and any defects are fixed.
Between steps 2 and 6 the workshop is effectively lending money to its client. Multiply that by the jobs in progress and you get the working capital a cabinet making business really needs.
Do deposit rules limit how much you can collect up front?
They can, depending on your state and whether your work counts as domestic building work there. Victoria is a clear example. According to Consumer Affairs Victoria, the deposit on a domestic building contract can’t exceed 10% if the price is under $20,000, or 5% if it’s $20,000 or more. Domestic building insurance also comes into play above $16,000. A $38k kitchen supplied and installed under such a contract would allow a deposit of about $1,900, which doesn’t come close to covering the board order.
Other states have their own thresholds and definitions. Check with your state’s building regulator or your industry association whether your contracts fall inside the rules. Either way, if your deposits are small compared with your materials bill, borrowing for the gap is a normal part of running the workshop, not a sign of trouble.
What changed when engineered stone was banned?
From 1 July 2024, Australia banned the manufacture, supply, processing and installation of engineered stone benchtops, panels and slabs, with exemptions for some sintered stone, porcelain and finished products. Contract-based transitional arrangements differed by state and have now ended. Removal, repair and minor modification of engineered stone already installed in homes is allowed under a separate framework that requires notification to the work health and safety regulator.
For a cabinet maker selling full kitchens, the ban did three things relevant to finance:
- It changed the cost of the most visible part of the job. Natural stone, porcelain and other alternatives price differently, and some carry longer lead times.
- It shifted supplier relationships. Workshops that relied on one engineered stone fabricator had to find new benchtop partners, often with new deposit and payment terms.
- It created rework. Renovations that keep existing engineered stone tops while replacing cabinetry need contractors who follow the notification rules.
If your benchtop supplier now wants a larger deposit or payment before fabrication, factor it into how much working capital each job needs.
What machinery do cabinet makers finance?
Machinery is what lets a three-person workshop produce like a much larger one. Common purchases:
| Equipment | Why it’s bought | Finance that usually fits |
|---|---|---|
| CNC nesting router | Faster, more accurate cutting with less waste | Equipment finance or chattel mortgage |
| Edgebander | Cleaner finish, less outsourcing | Equipment finance |
| Panel saw, drill and dowel machines | Replacing older gear | Equipment finance or a short unsecured loan |
| Dust extraction upgrade | Safety and capacity | Equipment finance, sometimes bundled with the main machine |
| Delivery van or truck with tailgate | Getting finished cabinets to site | Commercial vehicle finance |
| Design software and estimating tools | Quicker quotes | Working capital or a small unsecured loan |
One detail catches workshops out. If your factory is leased and a CNC is bolted to the slab, an equipment lender may ask your landlord to sign a landlord waiver confirming the landlord won’t claim the machine as a fixture. Ask your landlord early, because a delayed signature can hold up settlement.
Run the monthly figure through our equipment finance calculator before you commit, and compare it with the labour or outsourcing cost the machine replaces.
Got a machine quote sitting on the desk? Ask what it might take to fund it; a minute online, with no effect on your credit file.
Retail kitchens or builder work: which finance fits?
Retail renovations. Deposits in, balances paid on completion, many smaller clients. A business line of credit suits this pattern: draw as jobs start, repay as balances arrive, and pay interest only on what you’re using.
Builder and developer joinery. Bigger packages for housing estates or apartment projects, invoiced as units are installed, often on 30 to 60 day terms with some retention. Invoice finance lets you draw against approved invoices instead of waiting. Lenders will want to know how many builders you supply and how concentrated your income is.
A mix. Many workshops do both. A working capital loan can cover a specific busy stretch, with a line of credit for the everyday cycle.
What do lenders look for in a joinery business?
- Steady deposits into the account. Lenders read bank statements to see whether completed jobs reliably turn into money.
- A forward order book. Signed quotes and builder schedules give confidence about the next few months.
- Supplier accounts in order. Overdue board supplier accounts are a warning sign to an assessor.
- Builder risk. Heavy reliance on a single builder raises questions about what happens if that builder runs into trouble.
- Tax position. Quarterly BAS up to date, and any tax owed either paid off or sitting on an ATO arrangement you’re honouring.
Which paperwork speeds up a joinery loan?
- Business account statements going back at least six months, preferably a year
- Your current order book or signed quotes for the next quarter
- Who owes you and who you owe, exported from Xero, MYOB or whatever package you use
- Machinery quotes, including any trade-in
- Your lease, if you’re financing fixed machinery in a rented factory
- The last few quarterly activity statements and a printout of your ATO balance
Example: a workshop moving to CNC
An illustrative case, not a real client. A Geelong cabinet maker with four staff does mostly retail kitchens and wardrobes, plus joinery for two local builders. Cutting is done on an ageing panel saw and the owner outsources edging, which adds days to every job.
The owner gets a quote of about $165k for a CNC nesting router and edgebander, plus $30k for extraction. The bank is willing but wants the business’s factory lease extended first and a fresh set of accounts. A non-bank equipment lender approves a chattel mortgage over the machines once the landlord signs a waiver, and the business adds a $60k line of credit to carry board stock during the changeover month. Within a quarter, outsourced edging costs are gone and turnaround drops from six weeks to four, which brings balances in sooner.
Talk to someone who understands workshop cash flow
Good cabinet makers are rarely short of orders. What slows them down is paying for the next job while the last one is still being finished, or waiting for the right moment to buy a machine that would lift output.
If that sounds familiar, start with our short form. It’s roughly a minute of typing, and an enquiry leaves your credit history untouched. Your enquiry isn’t fired off to dozens of finance companies, so there’s no barrage of calls; a member of our team who understands deposits, board orders and builder terms looks over your details and phones you. Give us your genuine turnover, the machine or stock you’re funding, and how your work splits between retail and builders, so what we suggest on that first call genuinely fits the workshop.
Frequently asked questions
How do cabinet makers finance a CNC router?
Most use equipment finance, typically a chattel mortgage, with the machine itself as security. Established brands with a resale market are easier to fund. If your workshop is leased, the lender may need your landlord to sign a waiver confirming the machine isn't part of the building.
Can I get a loan to cover materials before a kitchen job is paid?
Yes. A revolving line of credit or a short working capital loan suits this, because you draw for board and hardware as jobs start and repay as balances come in. Lenders look at how reliably past jobs converted into payments.
Do lenders treat joinery for builders differently from retail kitchens?
Yes. Retail renovation clients usually pay a deposit and a balance on completion, while builders often pay on 30 to 60 day terms and sometimes hold retention. Builder-heavy workshops often suit invoice finance, while retail-heavy ones suit a line of credit.
Did the engineered stone ban affect cabinet makers?
It affected anyone selling kitchens with stone tops. From 1 July 2024, work with engineered stone benchtops, panels and slabs was banned, with limited exemptions, so kitchens now use alternatives such as natural stone, porcelain, sintered stone that qualifies, timber or laminate. That changed supplier lead times and quoting.
Will my bank lend to my cabinet making business?
An established workshop with two or more years of profitable accounts is a sensible bank customer, and banks are often the cheapest source of funds. If the bank declines, wants property security you don't have, or needs months to decide, non-bank lenders can assess recent bank statements instead.