Tender Bridging Finance: How to Fund Delivery After You Win
Won a government tender but need working capital? Bridging finance options in Australia: SEFA, GEP, private funders, costs, requirements and how fast they pay out.
The cruellest moment in tendering: you win a A$2M contract and realise you need A$400K for stock, staff and transport before government pays its first invoice in 30 days. This is exactly what bridging finance exists for, and SMEs that know the options win contracts their balance sheets say they should not.
How purchase order funding works
A funder lends against your signed award letter or purchase order, not your credit history. They typically advance 60 to 80 percent of the order value, pay your suppliers directly in many cases, and collect when government pays you. Repayment terms align to the 30-day government payment cycle.
Where to get it
- SEFA bridging loans: against a secured contract, the cheapest route, but a 4 to 6 week approval
- New South Wales Enterprise Propeller contract finance for New South Wales businesses
- NEF for larger Indigenous-owned contract finance needs
- Private PO funders: faster (days, not weeks) but materially more expensive; check the total cost against your margin
What every funder will ask for
- The signed award letter or purchase order
- Your costing: prove the contract is profitable after finance costs
- ABN report and tax clearance
- Supplier quotes for what you need to buy
- Company bank statements, usually 6 months
The mistake that kills applications
Pricing the tender without finance costs. If a funder charges 3 to 5 percent per month and government pays in 45 days, that is a meaningful slice of your margin. Build it into your bid price before you submit, not after you win.
Frequently asked questions
Can I get finance for a tender I have already won?+
Yes — purchase-order or bridging finance lends against your signed award letter or purchase order rather than your credit history, typically advancing 60 to 80 percent of the order value.
Where can Australian SMEs get tender bridging finance?+
SEFA (cheapest, slower), New South Wales Enterprise Propeller for New South Wales firms, the NEF for larger Indigenous-owned needs, and private purchase-order funders (faster but more expensive).
What does bridging finance cost?+
Private PO funders often charge roughly 3 to 5 percent per month, so price the finance cost into your bid up front — if government pays in 45 days it can take a real bite out of your margin.
What is tender bridging finance?+
Short-term working capital that funds delivery after you win a tender and is repaid when the buyer pays. It covers materials, wages and other upfront costs.
Can I get finance before I win the tender?+
Usually you need the award or a purchase order first, because lenders assess the specific contract and buyer. A reliable buyer improves your terms.
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