By Eugene Maslov, Founder and Finance Broker at Lendr360
Published 13 September 2026 · Last reviewed 24 September 2026
Australia needs more homes, yet builders continue to fail. Analysis of ASIC data reports that 3,472 Australian construction companies entered insolvency in 2025–2026 – almost one-quarter of all company insolvencies nationally.
Demand was not always the problem. Fixed-price contracts, rising labour and material costs, thin margins and delayed payments can pull a healthy-looking business in the wrong direction. National housing advisers say the cost of building a house is now 51% higher than before COVID.
Three questions worth asking
1. Are older quotes still profitable at today’s costs?
2. How much cash must you carry before the next progress payment arrives?
3. If a customer pays 30 or 60 days late, can you still meet wages, suppliers and tax?
A working-capital facility may help a sound business cross a genuine timing gap. But more debt cannot repair a contract that loses money each time the work moves forward.
Demand keeps the phone ringing. Margin and cash flow keep the doors open.