Finance for cash flow finance, shaped around how you get paid.

Unsecured loans and merchant cash advances are often approved the same day and funded within 24 to 48 hours from bank statements. Lines of credit and invoice finance take a few days to set up but are then available on demand. Applying before the gap bites, while trading looks strong, gets the best terms.

Yes. Cash flow facilities are designed for operating costs such as wages, supplier payments, rent and tax, rather than buying assets. Lenders will want to see that the gap is timing rather than a structural loss, so consistent revenue in the bank statements matters.

A line of credit or overdraft you draw only when needed is usually the cheapest for recurring gaps, because interest is charged only on the balance used. Invoice finance is cheapest for businesses with commercial debtors on long terms. Short-term unsecured loans and merchant cash advances are fastest but cost more, so they suit one-off needs with a clear return.

On the gap between costs falling due and revenue arriving, typically one to two months of operating costs for a line of credit, or a percentage of outstanding invoices for invoice finance. A broker works through your cash cycle and sizes the facility so it covers the gap without paying for headroom you never use.

A business line of credit gives you an approved limit you can draw on whenever you need funds, and you only pay interest on the amount you have drawn. Repayments reduce the balance and free up the limit again, so the facility revolves rather than running down like a term loan. Most facilities are reviewed every 12 months. Funds are usually transferred to your business account the same or next business day, which is why lines of credit are commonly used for wages, stock, supplier payments and timing gaps between paying and being paid.

A business overdraft is attached to your everyday transaction account and is usually offered by your bank, while a business line of credit is a standalone facility that can come from a bank or a non-bank lender. Both are revolving and both charge interest only on what you use. Non-bank lines of credit are typically approved faster from bank statements and are often available without property security, whereas bank overdrafts tend to require more documentation but can be cheaper. Your broker compares the total cost of each, including line fees, before you decide.

Choose a line of credit when your funding need rises and falls, and a term loan when you need a set amount for a one-off purpose. A line of credit suits seasonal businesses, project-based work and cash-flow timing because you draw only what you need. A term loan suits a defined cost such as a fit-out or a vehicle, because it gives a fixed repayment schedule and often a lower rate. Many businesses run both: a term loan for the big purchase and a line of credit as a working buffer.

Interest is calculated daily on the drawn balance and charged monthly, usually at a variable rate, so an undrawn line costs no interest. If you draw $40,000 of a $100,000 limit, you pay interest on $40,000 only. Rates on unsecured lines of credit in Australia are generally higher than on secured facilities, reflecting the flexibility and lack of security. Because the rate is variable, it can change over the life of the facility, and your broker explains how each lender sets and reviews its rate.

The common fees are an establishment fee when the facility is set up, and either a monthly line fee or an annual facility fee that some lenders charge whether or not you draw. A few lenders charge a small fee per drawdown instead. Always compare the total cost of holding the facility for a year, not just the interest rate, because a low rate with a high line fee can cost more than the reverse. Any brokerage is disclosed to you in writing before anything is submitted.

Not always. Unsecured business lines of credit are available in Australia, typically up to around $500,000, and are assessed on trading history, turnover and bank statements rather than property. A director’s guarantee usually applies. Secured lines of credit, backed by property, equipment or receivables, generally offer higher limits and lower rates. Your broker explains what security each lender requires and what a guarantee means for you personally before you decide.