When builders talk “finance,” it’s usually about progress claims, late payments, or the next client’s pre-approval. But as finance broker Barry Wilkinson from SW Brokerage explains, the real wins; fewer headaches, faster builds, stronger margins start long before a slab is poured. In a candid conversation on The Good Builder Podcast, Wilkinson laid out the hard lessons he learned the old-fashioned way, and the practical steps builders can take to tighten cash flow, de-risk jobs and help clients move from enquiry to handover without stalling.
From Scotland to settlements: grit first, finance second
Wilkinson’s story isn’t polished. It’s honest. Born in Scotland to a professional footballer, he moved to Brisbane, chased the round ball in the UK, then returned to Australia faced with a choice: keep chasing sport, or build a long game. He took a call-centre job at Suncorp, hated it, then shadowed a broker after hours for six months just to understand how deals truly got done. First appointment? A two-page complaint. “Sink or swim,” his boss said. He swam.
Not that it was linear. In 2012, after buying into a mortgage franchise and helping grow it to 300 outlets nationwide, the parent company fell into administration. Trails vanished. So did income. With a baby on the way, Wilkinson says he was five days from bankruptcy. The turning point wasn’t a spreadsheet, it was humility. “Your ego is not your amigo,” he says. He rebuilt, sharpened his philosophy, and today leads a brokerage spanning residential, commercial, SMSF, business and private lending.
His mantra now: “Money talks, wealth whispers.” The richest clients, in his experience, aren’t the flashiest; they’re disciplined, boring on paper, and ruthless about cash flow.
The finance path most builders miss: manage the journey, not just the rate
Plenty of people can quote a sharp home-loan rate. That’s not where projects succeed or fail. Wilkinson argues the make-or-break is operations: who walks the client from formal approval through every drawdown and variation, and how fast the bank releases funds at each stage.
At SW Brokerage, once the loan is approved, a local settlements team (ex-branch managers) takes over and stays on the file until final claim. They sanity-check invoices (signatures, site address, stage alignment), manage the bank’s construction team, and flag anything that would blow out time frames, especially variations.
Why this matters: A variation at Stage 2 can ripple through valuation, loan structure and later drawdowns. If the contract no longer mirrors the bank’s numbers, expect delays. The cure is relentless communication between builder, broker and client and a broker who treats the build like a project, not a file.
Pre-approvals aren’t a golden ticket. Wilkinson’s blunt view: many are system-generated and “subject to” everything. Before you line up a start date, make sure a human credit assessor has looked at the file and that the structure matches the building contract, inclusions and any outside-of-contract works.
The traps that stall builds and how to avoid them
1) “I’ve got mates rates” (but the bank hasn’t seen it)
Clients often sign a $500k build contract, then keep carpet, landscaping and concrete “outside” with friends. To a bank, those are still part of total project cost, they want every contract in the valuation pack. If the valuer hasn’t seen it, funds won’t flow.
Builder move: at tender, ask whether any works will be done by others. Push the broker to include those quotes upfront. You’ll save weeks later.
2) Variations without a finance plan
A $15k tapware upgrade at Stage 2 isn’t just a change order it can change the valuation and the draw schedule. If the client can’t cover the gap, the bank may stall the next claim.
Builder move: before issuing a formal variation, loop in the broker. Confirm: source of funds, valuation impact, and whether the bank needs an amended schedule.
3) Thin broker infrastructure
A lone-wolf broker may get formal approval and disappear. That’s when builders end up chasing banks and burning hours.
Builder move: ask who handles construction drawdowns. If it’s not a specialist settlements team, expect friction.
For your clients: first-home buyer settings and tax basics (presented as Barry’s views)
Wilkinson is adamant that right now is a strong window for first-home buyers willing to build, provided they use the settings available to them and get clear on structure. He says that from 1 October there are expanded concessions, including no lenders mortgage insurance up to 95% LVR, construction eligibility and other relief. He also notes some buyers can obtain 95–98% home loans.
Important: Policies change and differ by state. Treat this as Wilkinson’s commentary from the podcast; always verify the latest scheme rules before advising clients.
On investment property, Wilkinson highlights a foundational tax lever: for brand-new builds, owners can claim 2.5% of the construction amount as capital works deductions each year. Renovations on investment properties (bathrooms, kitchens, decks) can also be depreciated provided a quantity surveyor prepares a report for the accountant.
Not financial advice: Encourage clients to seek advice from a licensed tax professional. Your role is to flag the conversation early so budgets reflect after-tax reality.
For your business: fix cash flow first, then grow
Many solid building companies face the same issue: they’re profitable on paper but starved for cash because growth demands more supervisors, utes, plant, and working capital before revenue catches up.
Wilkinson’s approach:
- Refinance + consolidate: Roll expensive consumer debt (cards at 15–20%, vehicle loans) and ATO debt into the home loan or a cheaper facility, then re-amortise to 30 years and pay $200–300 extra per month. Net effect: better cash flow and a shorter true payoff date.
- Bank-statement lending for overdrafts: For growing firms, some lenders will assess 12 months of business inflows/outflows and offer a working-capital line based on surplus cash, a lifesaver when you’re waiting on progress payments.
- Display homes and private lending: When speed trumps price (e.g., site acquisitions, display builds), private facilities can settle fast at ~9–10% while traditional lenders may price ~7% but require more hoops and time. Use the right tool for the job, then refi to prime once stabilised.
The mid-career moment: builders, back yourselves
Between 45 and 55 is when many builders have meaningful equity and experience but haven’t put money to work. Wilkinson urges operators to “throw the die” (prudently): consider a second property, selected equities, or SMSF property (with specialist advice and note his point that construction inside SMSF is restricted). The bigger principle: do something on purpose, not nothing by default.
And remember the cultural pressure. The industry loves a shiny ute and a big boat. Wilkinson’s view is simple: clients don’t care what you drive; banks care what you owe. Asset toys drain serviceability. Discipline builds options.
Builder–broker–client: make it a three-way partnership
The single best way to reduce friction? Introduce your broker to your client early and insist on a three-way plan:
- Budget reality — clear ceiling, contingency and who pays for upgrades
- Contract completeness — everything the bank will want to see, including “mate’s jobs”
- Drawdown choreography — who sends what, when, and how variations will be handled
Treat the finance flow like a critical path on the Gantt. Because it is.
Fast takeaways for builders
- Don’t rely on pre-approvals. Confirm a human-assessed structure that matches your contract and inclusions.
- Front-load the val pack. Include every outside-contract work item in the valuation bundle.
- Lock the comms loop. Builder, broker, client in one thread from approval to final claim.
- Protect cash flow. Consider refinancing to clear expensive consumer/ATO debt and free monthly headroom.
- Use the right money. Private lending for speed, prime lending for price, refi once stabilised.
- Educate clients. Variations affect valuations; budgets are real.
- Think mid-career strategy. Equity doing nothing is a risk in disguise.
The last word (and a number)
Wilkinson’s edge isn’t a secret product, it’s old-school service and a refusal to complicate things. “Tell me what you want to do,” he says. “Then we’ll show you how to do it.”
Contact: swbrokerage.com.au (Contact: Barry Wilkinson)
Direct: 0438 011 196
Author: TGB Editorial
0 Comments