Builder Materials Deposits (2025): 11 Cashflow Mistakes Before the First Progress Claim
Builder materials deposits for builders and tradies – Switchboard Finance
🧱 Builders · materials deposits · progress claims · Tradie Hub · 2025
Searching for builder materials deposits in 2025 and why cashflow breaks before the first progress claim? It’s usually not “profit” — it’s timing, deposits, and paperwork order.
Want the bigger tradie money picture first? Start here: Tradie finance Australia.
If you want a clean “one link” starting point for approvals + paperwork, use the Tradie Loan Pack.
- You’re paying material deposits before you’ve billed the client.
- You’re trying to keep the file clean with Bank Statements-style evidence.
- You want the “money page” context upfront: Business Line of Credit or Working Capital Loans.
The deposit-to-claim timeline that causes the squeeze
The squeeze is simple: deposits and supplier invoices leave your account first, while your first client payment lands later. In 2025, this is where a clean Cash Flow Forecast stops panic decisions.
If your jobs are lumpy, don’t “wing it” — map the gap, then choose the right tool inside the Working Capital bucket.
| Stage | What cash leaves | What goes wrong | Clean fix |
|---|---|---|---|
| Quote accepted | Supplier deposit request | Deposit is paid before you’ve billed or collected | Send the client deposit/invoice first, and keep supplier terms in writing |
| Order placed | Materials + freight | “One big invoice” with no itemisation | Ask for an itemised Tax Invoice-style quote |
| Pre-start / mobilisation | Subbies + prelims | Multiple jobs overlap and drain buffer | Separate job buffers and avoid stacking deposits |
| First claim due | More supplier invoices | Client paperwork slows approval/payment | Keep invoices, variations, and evidence tidy from day one |
11 cashflow mistakes before the first progress claim (and the clean fix)
These mistakes don’t look dramatic — but they show up as late payments, rushed borrowing, and messy files. Keep it boring, and you protect Affordability.
If you’re already in the squeeze, compare options under Business Loans (and keep “asset funding” separate via Low Doc Asset Finance when you’re buying gear).
| Mistake | Why it hurts | Clean fix |
|---|---|---|
| 1) Paying deposits before billing the client | You fund the job while waiting for sign-off | Invoice client deposit first and tie dates to delivery |
| 2) “Package” quotes with no detail | Creates back-and-forth with suppliers and finance | Request itemisation and clear scope |
| 3) Mixing jobs in one bank account | You can’t see which job is draining cash | Tag transactions and separate buffers per job |
| 4) Not tracking supplier lead times | You pay early, then wait weeks for delivery | Align deposit timing to confirmed delivery windows |
| 5) Letting variations drift | Costs rise but the claim doesn’t | Document variations immediately and bill as agreed |
| 6) Forgetting GST timing | You pay GST on purchases now, but collect later | Plan GST cash timing if you’re GST Registered |
| 7) Relying on a card as a “system” | Limits, fees, and randomness | Use a structured facility suited to deposits |
| 8) Stacking multiple deposits at once | One week of deposits can wipe the buffer | Stage orders where possible and sequence projects |
| 9) Not knowing your true payable dates | Invoices hit while you’re still waiting on approval | Map supplier timing in a simple calendar |
| 10) Under-pricing “pre-start” costs | You fund mobilisation out of pocket | Build pre-start costs into your pricing and deposit |
| 11) Taking the wrong product for the problem | Asset finance used for bills (or vice versa) creates friction | Match the tool to the need: deposits/bills vs equipment |
Materials deposits hurt when cash leaves before client payments land. The fix is boring: itemised documents, staged ordering, and a simple plan for the deposit-to-claim gap.
Start with Tradie Hub and the overview guide Tradie finance Australia. For deposit timing, compare Business Line of Credit vs Working Capital Loans. For gear purchases, keep it separate with Low Doc Asset Finance.
FAQ
Make sure your client payment timing won’t lag behind your supplier cycle — especially where Accounts Payable dates are tight.
Yes, if the numbers stack up under a lender’s Cash Flow Assessment and your deposit-to-payment timeline is clearly documented.
Look for any Loan Covenant that restricts how funds can be used or requires certain reporting — that’s where “simple” turns into admin.
Because volatile inflows can change risk and pricing, especially if your Credit Score is already being watched closely.
If equipment is part of the project setup, the clean moment to align paperwork is before Settlement — not after delivery when you’re already chasing claims.
For tax source-of-truth, start at ato.gov.au.
Disclaimer: This content is general information only and isn’t financial, legal, or tax advice.
