Quick answer
Fencing contractors typically borrow for machinery like post drivers, augers and skid steers, for trailers and utes, for steel, timber and glass stock bought ahead of jobs, and to bridge slow payments from builders, councils and neighbours splitting a boundary fence. Equipment finance suits machinery and vehicles, a line of credit suits materials, and invoice finance suits commercial accounts. Banks lend to established contractors; non-bank lenders help when speed or paperwork is the issue.
Key points
- Residential, rural, pool and commercial fencing each pay differently, and lenders look at your mix
- In NSW, residential fencing worth more than $5,000 in labour and materials needs a contractor licence, so lenders may check yours
- A dividing fence often has two paying customers, which can slow collection on otherwise simple jobs
- Post drivers, augers, skid steers and trailers are usually financed against the machine itself
A big storm rolls through on a Tuesday night. By Thursday a fencing contractor has forty enquiries, three insurers asking for quotes and a builder wanting a housing estate boundary done before handover. Steel posts and sheeting have to be bought now, the second crew needs a trailer, and the auger is overdue for replacement. The money from all that work will arrive over the next two months.
Fencing businesses are rarely short of demand. They are often short of the cash to say yes to it.
What kind of fencing do you mostly do?
Lenders and the right loan both depend on your mix. Fencing is broader than most people realise, and each segment has its own cash pattern.
Residential boundary and front fences. Many small jobs, usually paid on completion. When the job is a dividing fence, there are often two neighbours sharing the bill, and one of them may pay late or dispute their share. That’s a collection problem, not a profitability problem.
Pool and glass fencing. Higher value per metre, compliance-sensitive, and often booked as part of a pool or landscaping project. You may be waiting on the pool builder or landscaper to be paid before they pay you.
Rural and farm fencing. Long runs of post and wire, sometimes in remote areas, with heavy machinery and travel costs. Farm clients can be seasonal payers, and post-disaster recovery work can arrive in waves.
Commercial, civil and security fencing. Schools, councils, industrial sites, construction hoarding. Larger invoices on 30 to 60 day terms, sometimes with retention or tender requirements.
A short note to the lender on how your revenue splits across these (for instance, “about half residential, a third builder and estate work, the rest rural”) makes your bank statements easier to read.
Does your licence affect your borrowing?
Indirectly, yes. Lenders want confidence that you can legally do the work that pays them back. In NSW, the Government’s licensing page says a contractor licence is needed to carry out, advertise or contract for residential fencing valued at more than $5,000 in labour and materials, including GST. It also notes that some fencing is covered by other licence classes: carpentry for timber, metal and prefabricated glass fencing, glazing for glass and acrylic fencing, metal fabrication for metal fencing, and bricklaying for masonry fences. The penalties for unlicensed work run into the tens of thousands of dollars.
Other states set their own thresholds and categories, so check with your state regulator. When you apply for finance, have your licence number and class ready. If your business does pool fencing, rural work and commercial jobs, show that your licences cover each one.
Which equipment do fencing contractors finance?
| Machine or vehicle | What it does for a fencing crew | Usual finance |
|---|---|---|
| Hydraulic post driver | Speeds up rural and steel post installs | Equipment finance |
| Skid steer or mini loader with auger | Digs holes through clay and rock, clears lines | Equipment finance or chattel mortgage |
| Tandem or tipping trailer | Moves materials and spoil | Equipment finance, often bundled |
| Dual cab ute or tray truck | Carries crews, posts and panels | Commercial vehicle finance |
| Welding gear and cut-off saws | Custom gates and steel work | Short unsecured loan or bundled equipment finance |
Because the lender can repossess and resell the gear, equipment finance usually works out cheaper than unsecured money. If you’re comparing a new machine with a used one, run both through our business loan repayment calculator and weigh the repayment against the hire costs you’d stop paying.
If machinery or materials are holding you back from taking on more jobs, see what you might be able to fund. A minute online, and your credit report is left alone at enquiry stage.
How do you fund steel, timber and glass ahead of payment?
Materials make up a large share of every fencing quote. Steel sheeting, rails and posts, treated pine, glass panels and hardware all get bought before the job is finished, and some suppliers want payment before delivery.
Three common approaches:
- A revolving line of credit. Draw on a business line of credit for each week’s materials and repay as jobs are paid. It suits a steady flow of residential work.
- Trade accounts with suppliers. Many fencing suppliers offer 30-day accounts. Combined with a line of credit, they stretch your buffer further. Keep these accounts current, because lenders look at how you treat your suppliers.
- A job-specific working capital loan. For a large estate, school or council contract, a working capital loan sized to the job keeps the risk tied to that contract.
How can you handle slow payers?
Neighbours sharing a boundary fence. Agree in writing up front who pays what and when. Many contractors invoice each owner separately and ask for deposits from both. This doesn’t need a loan, but it keeps the money flowing that a lender wants to see.
Builders, developers and councils. Larger customers are reliable but slow. Invoice finance advances a large share of an approved invoice soon after you issue it, which suits these accounts well.
Insurance work. Storm repairs can involve waiting on a claim to be approved before the homeowner pays. Keep a clear record of which jobs depend on insurers, so you can explain slower receipts to a lender.
What makes lenders nervous about fencing businesses?
- Weather-driven peaks. A big storm season can make one year look much stronger than the next. Lenders like to see a baseline of regular work.
- Customer concentration. If one builder or developer provides most of your revenue, its payment habits become your risk.
- Material price swings. Sharp rises in steel or timber prices can squeeze fixed-price quotes. Show that your quotes have a validity period.
- ATO arrears. Fast-growing contractors often fall behind on BAS. Being on a payment plan can still work if it’s disclosed and being kept.
Paperwork that helps
- Your contractor licence details for every state you work in
- At least half a year of business bank statements
- Your forward job list, with signed quotes or contracts for the larger ones
- Machinery or vehicle quotes, plus trade-in details
- Any supplier trade account statements
- Your most recent BAS and ATO portal balance
Example: adding a second crew in south-east Queensland
An illustrative example only. A Logan fencing contractor runs one crew doing residential steel-sheet and timber boundary fences, plus occasional rural jobs. After storm season and a new housing estate contract, the order book has stretched to ten weeks.
The owner wants a second crew: a used skid steer with an auger, a tandem trailer and a second dual cab ute, around $135k in total, plus about $40k of materials headroom. The bank offers to consider it after year-end accounts are finalised. A non-bank lender instead approves a chattel mortgage for the skid steer, trailer and ute, and a separate $40k line of credit for materials, based on eight months of bank statements and the estate contract. The waiting list falls to four weeks within three months, and the line of credit is cleared each time the estate builder pays.
Ready to say yes to more jobs?
Fencing work is steady, local and often urgent. If cash flow, machinery or materials are the bottleneck, the right finance can let you take on the jobs you’ve been turning away.
Getting started with us is quick: a short online form, around a minute, and no credit check just because you’ve asked a question. What you send stays with our own team and isn’t blasted out to every lender going, so you won’t be screening unfamiliar numbers between post holes. Someone on our side actually reads about your crews, jobs and customers, then picks up the phone to you. Be precise about turnover, what you need to buy and how much, because that’s what lets us suggest the right facility the first time we talk.
Frequently asked questions
How do fencing contractors finance a skid steer or post driver?
Usually with equipment finance such as a chattel mortgage, where the machine secures the loan. Well-known brands are easier to fund, and used machines can be financed too, often over a shorter term. Attachments like augers can sometimes be added to the same contract.
Can I borrow to buy steel and timber before a big job?
Yes. A business line of credit is a common fit because you draw for materials as jobs start and repay when they're paid. For a single large contract, a short working capital loan sized to that job can also work.
Do I need a licence for a lender to fund my fencing business?
Lenders mainly want to know you can legally do and charge for the work. In NSW a contractor licence is needed for residential fencing above $5,000 including GST, and other states have their own rules. Having your licence details ready speeds up assessment.
What can I do about councils and builders paying on 60-day terms?
Invoice finance lets you access most of an approved invoice soon after issuing it, with the lender repaid when the customer pays. It suits reliable but slow payers such as councils, schools, developers and larger builders.
Will a bank lend to a fencing contractor?
Banks lend to plenty of fencing businesses, especially those with two years of profitable trading and some property security, and they're often the cheapest choice. If a bank says no or takes too long, non-bank lenders can look at bank statements and your job pipeline instead.