Contractors often have to fund work before progress payments arrive. A bank working capital loan (KMK) covers that gap. The bank wants to know three things: the company is legitimate and healthy, the project is real, and the progress payments will be enough to repay. Tidy reports answer all three and speed up approval.
- Peak cash shortfall Rp180 m
- Buffer Rp20 m
Documents usually requested
| Group | Documents | From which report |
|---|---|---|
| Legal | Company deed and amendments, business ID (NIB), tax number, business certificate, directors’ IDs | Company files |
| Company finances | Last 2 years’ financial statements, bank statements, annual tax return | Accounting reports |
| Project | Work order or contract, budget, schedule, performance guarantee | Contract documents |
| Use of funds | Monthly project cash flow, working capital need | Project cash flow |
| Track record | Completed and current projects, with value and client | Profit and loss per project |
Sizing the limit
- Build the monthly project cash flow: cash in from the down payment and progress payments, cash out for materials, wages, subcontractors and overhead.
- Find the month with the lowest cumulative cash. That is the peak working capital need (example: Rp180 m in month 3).
- Add a buffer for late payments (example: Rp20 m), so the limit requested is Rp200 m.
- Show which progress payments will repay the loan, and when.
Banks set their own limits, often a share of the contract or work order value, and usually ask for progress payments to be paid into an account at that bank. Terms, collateral, interest and fees differ by bank, so compare several offers.
Interest in the reports
| Item | Example |
|---|---|
| Average amount drawn | Rp120 m for 6 months |
| Interest per year (example) | 12% |
| Interest cost | Rp120 m × 12% × 6/12 = Rp7.2 m |
| Recorded as | Interest expense; can be allocated to the project financed |
Common mistakes
- Applying without a project cash flow, so the limit looks like a guess.
- Company accounts that do not match the bank statements.
- A limit too small because late payments were not allowed for.
- Interest left out of project cost, so project profit looks larger.
The full guide is in How to create a construction finance report in Google Sheets. It has a free template (Excel or Google Sheets) and a checker that reads your own workbook.
Ready to use the Komander agents on your projects?
When your workbook is complete, apply for a pilot: we help connect your project data to the Finance, Cost and Scheduler agents and review the first reports with you.
Send to melwani@komander.ai. Your workbook check result is included when there is one; the workbook itself is not sent.
Common questions
What documents does a bank ask contractors for?
Company legal documents, financial statements and bank statements, the work order or contract, budget and schedule, the project cash flow, and the track record.
How is the limit sized?
From the project cash flow: the largest cumulative cash shortfall, plus a buffer for late progress payments.
How is the loan repaid?
From the project’s progress payments, usually through an account at the lending bank.
References
- BTN: SME working capital loans (Indonesian): example contractor requirements