The aim isn’t to borrow to pay super forever. The aim is to have the right facilities in place so that timing issues don’t turn into crises.

Here are your business funding options:

1. Business overdraft linked to your trading account
An overdraft is often the cleanest tool for payday super.

How it works
Your everyday transaction account is allowed to go into negative up to an approved limit and you only pay interest on the amount you’re actually using.

Why it suits payday super
Super and wages are predictable, however receipts rarely are. An overdraft quietly absorbs the bumps (a slow paying client, a big stock order) without you having to juggle what bill is paid this week.

What our finance team will look at with you:

  • seasonality and typical monthly shortfalls to size the limit properly
  • whether a bank overdraft or a non bank working capital facility is more realistic given your trading history and security position

Used well, an overdraft is like having a shock absorber on your cash flow rather than feeling every pothole in the road.

2. Business line of credit / revolving facility
Similar idea to an overdraft. However often structured as a separate facility, you draw down into your main account as needed.

Key points:

  • flexible drawdown and repayment, interest only on what you use
  • may be unsecured up to a certain limit or secured against property or business assets
  • works well if you can forecast when the pressure points will be and would like to cover specific periods (eg. school holidays for hospitality, wet season for trades)

From a payday super angle, a revolving facility allows you to:

  • lock in a buffer that covers, say, two or three pay cycles of wages and super, and
  • draw only when clients are slow or unexpected costs land the same week as payroll

Our finance team will help you compare pricing, covenants and redraw rules across lenders. This is where fine print matters more than headline rate.

3. Invoice finance (debtor finance)
If your main issue is slow paying customers rather than lack of sales, invoice finance can be very effective.

How it works:

  • you issue an invoice to your customer
  • a financier advances you a percentage of that invoice (often 70-85%) within a day or two
  • you receive the balance, less their fees, when your customer eventually pays

Why it pairs well with payday super:

  • converts sales into cash quickly so you can fund wages and super on pay day rather than waiting 30-60 days
  • grows with your turnover

The more you bill, the more headroom you have.

There are flavours:

  • full invoice factoring where the financier manages collections
  • confidential invoice discounting where you keep control of debtor management and the facility sits behind the scenes

Our role is to help you:

  • decide what invoices/funding percentage you actually need. You don’t have to fund 100% of your sales
  • compare fees, notice periods and how the facility interacts with any existing bank security over debtors

4. Short term working capital loans
Sometimes you just need a chunk of cash up front to reset the system. Clear some ATO, tidy up supplier arrears and be financially ahead of payday super.

Characteristics:

  • fixed term (often 6-36 months), fixed or variable repayments
  • typically unsecured for smaller amounts, secured for larger limits
  • fast approval with non bank lenders, with pricing reflecting the speed and risk

Used wisely, a working capital loan can:

  • move you from ‘constantly behind’ to ‘back at zero’
  • provide breathing space to build a genuine cash buffer while your new super payment rhythm beds down

This is one to workshop carefully with us so the repayment profile doesn’t create a new crunch every fortnight.

5. Equipment and asset finance (indirect help)
On its own, asset finance doesn’t pay wages or super – however it can free up cash so you can.

If you’ve used cash or your overdraft for vehicles, machinery or fit out, we may be able to:

  • refinance those assets onto dedicated equipment loans or leases
  • push the repayments onto terms that match the working life and income generated by the asset

The outcome we are seeking:

  • release working capital back into the business
  • leave your shorter term facilities (overdraft / line of credit) available to manage payroll and payday super, not tied up in equipment that could be financed long term

6. Trade and supplier finance
For importers, wholesalers and retailers, the real pain point may be paying for stock weeks before you sell it, in addition to real time wages and super.

Trade or supplier finance can:

  • fund stock purchases or supplier invoices up front
  • be repaid when the stock is sold or after an agreed term (eg. 90 or 120 da

This means:

  • your core working capital can be reserved for payroll and super
  • you’re not trying to fund everything out of the same pot in the same week

Funding is something to design with our finance team, alongside your terms with major suppliers. Reach out now. Don’t leave it until cash flow is tight if you would like to secure more favourable funding options.ys)