Quick answer
Mining services contractors borrow for plant, light vehicles and service trucks, payroll while large miners pay on long terms, mobilisation costs for new sites, and safety systems and tickets. Lenders look at contract length and terms, payment timing, commodity exposure and customer concentration. Property security often suits larger mobilisations; unsecured lines can cover smaller debtor gaps.
Key points
- Contractors work for large, solid payers — on the payer's terms.
- Mobilising for a new site means big costs before the first invoice.
- Contract end dates and commodity cycles are key risks.
- Payment Times Reporting publishes how quickly large businesses pay small suppliers.
- Common uses
- Plant, vehicles, payroll, mobilisation
- Lenders focus on
- Contracts, terms, commodities
- Property-secured
- $20k – $5m
- Unsecured options
- Typically $5k – $500k
Mining services is a big tent: maintenance crews, civil contractors, labour hire, drilling support, haulage, fabrication, electrical and instrumentation, camp services. The clients are some of the largest companies in the country, and they pay reliably — on their own schedule. For a small or mid-sized contractor, that schedule can stretch cash hard, especially when mobilising for a new site.
What do mining services contractors usually borrow for?
- Plant and vehicles. Light vehicles fitted to site standards, service trucks, cranes and support gear.
- Payroll. Wages while invoices are paid on 30, 45 or 60-plus-day terms.
- Mobilisation. Getting crews, equipment and accommodation to a new site.
- Safety systems and tickets. Training, inductions, compliance systems.
- Workshop and fabrication capacity. Equipment to deliver maintenance and shutdown work.
How do lenders look at a mining services contractor?
Contracts. Length, value, scope and termination rights. Master service agreements with call-off work are read differently from fixed-term contracts.
Payment terms. Large miners often set long terms. The government’s Payment Times Reporting Scheme publishes information on how quickly large businesses pay small suppliers, which is useful context.
Commodity exposure. Contractors tied to one commodity or one mine are exposed to that commodity’s cycle and the mine’s life.
Customer concentration. Many contractors depend on one or two clients. Lenders ask about relationships and renewal dates.
People and costs. Workers in the mining industry are generally covered by the Mining Industry Award where it applies. Fuel is a major cost, and eligible businesses may claim fuel tax credits.
New site coming up? Start a quick enquiry — there’s no credit check to enquire.
A closer look: the mobilisation squeeze
Winning a new site contract is a big step. Before the first invoice, a contractor may need to buy or fit out vehicles to site standards, complete inductions and medicals for the crew, pay travel and accommodation, and carry wages for a month or more. Then the first invoice goes in and waits for approval and payment.
For a growing contractor, this squeeze can consume every dollar in the bank. Lenders look at the contract value, the client’s payment record and a realistic mobilisation budget to size a facility. Property security often supports the larger amounts, with repayments timed to the contract’s cash flow.
The contractors who manage this best treat mobilisation as a project with its own budget, and arrange finance before signing — not after the crew is already on site.
Documents that help
| Document | Why it matters |
|---|---|
| Business bank statements | Income and costs |
| Contracts and purchase orders | Scope, value and terms |
| Aged debtors | How quickly clients pay |
| Plant register | Assets and existing finance |
| BAS and financial statements | Turnover and margins |
Red flags for mining services loans
- Long payment terms stretching cash without a facility.
- A contract ending with no replacement.
- Single-commodity exposure.
- One mine site providing all the work.
- Fuel or PAYG arrears.
Questions a lender will ask
- Who are your clients, and what are the contract terms?
- How long do invoices take to be paid?
- When do current contracts end, and what’s in the pipeline?
- What plant and vehicles do you own or finance?
- What will the funds let you do?
How to strengthen a mining services application
Summarise contracts with values, terms and end dates. Provide aged debtors by client. List plant and vehicles with finance. For mobilisation, prepare a budget and timeline to the first payment.
When should a contractor apply?
Before signing a new site contract, or when you see renewal dates approaching. Early conversations give time to put the right structure in place.
Common misconceptions about mining services finance
“Big clients mean easy approval.” Big clients pay reliably, but on long terms. Lenders look at how you’ll carry the gap.
“A contract is security.” It shows where repayments come from, but it isn’t security on its own. Trading history or property usually supports the facility.
“Mobilisation costs are small.” Vehicles fitted to site standards, inductions, travel and a month or more of wages add up quickly. A realistic budget prevents surprises.
“The boom will last.” Commodity cycles turn. Lenders look at what happens when a contract ends or a mine slows.
Contractors who plan mobilisation, track debtors by client and spread work across sites and commodities usually find lenders keen to support the next contract.
Illustrative scenarios
Illustrative: mobilising to a new site. A maintenance contractor mobilises to a new site and needs $250k for vehicles and the first two months of wages. A second mortgage over investment property funds the mobilisation.
Illustrative: debtor gap. A fabrication contractor waits 60 days for payment on shutdown work and needs a $80k facility for wages. Banked income supports an unsecured line.
Secured or unsecured for a mining contractor?
Property-secured loans from $20k to $5m suit larger mobilisations and plant. Unsecured lines of $5k to $500k cover smaller debtor gaps. Haulage contractors should see the trucking guide, and our guide to borrowing when your industry is struggling covers commodity downturns.
Could your contracting business qualify?
A 60-second enquiry is the start. There’s no credit check when you first enquire, your details aren’t passed to a crowd of lenders, and a real person who understands long payment terms will call you. Please be accurate about turnover, the amount and any property so we can match you properly first time.
Frequently asked questions
Can a mining contractor borrow to mobilise for a new site?
Yes. Lenders look at the contract, the client, the mobilisation budget and your trading history. Property security often supports the larger amounts involved.
How do long payment terms affect a loan?
They increase the working capital you need. Lenders factor in how long the client takes to pay and size facilities accordingly.
Can I check how quickly a large company pays suppliers?
The Payment Times Reporting Scheme publishes information on how quickly large businesses pay their small business suppliers, which can help you plan.
What if my contract is ending soon?
Tell us. A lender will want to know about the pipeline of replacement work and how the business would look between contracts.