Working capital loans

Working capital loans give your business the breathing room to say yes: to the big order, the new client, the busy season and the payroll that comes with it. Every growing business has a gap between paying out and getting paid, and the bigger you grow, the bigger that gap tends to become. The smart move isn’t to squeeze through it on hope. It’s to match the gap to the right kind of working capital finance, so the money arrives when you need it and repays in a rhythm that suits how you earn.

FastBiz Loans offers six products from $5,000 to $500,000, decisions in as little as 4 hours and same-day funding possible once you’re approved and signed. This page helps you work out which one fits your gap.

What is the working capital gap?

The working capital gap is the time between spending money to deliver your product or service and receiving the cash from customers. Think of it as a loop: you buy stock or pay staff, you sell or complete the job, you invoice, and eventually you get paid. Until the loop closes, your own cash is doing the funding.

Here’s a simple illustration:

1. Day 1: a Brisbane joinery buys timber and hardware for a kitchen job.
2. Days 1–20: the team builds and installs, and wages go out each fortnight.
3. Day 21: the job is invoiced to the builder on 30-day terms.
4. Day 51: the builder pays.

That’s roughly 50 days in which the joinery has carried the cost of materials and labour. Win three jobs like that at once and the gap triples, even though the business is doing brilliantly. That’s why healthy, growing businesses use working capital finance: growth ties up cash before it releases it. Our guide to the working capital cycle shows how to measure your own loop and shorten it.

Which working capital finance fits which gap?

The right working capital finance depends on what’s causing the gap and how the cash comes back. Match the two and repayments line up naturally with your income.

Not sure which row is you? Many businesses sit across two. A lending specialist will usually spot the fit within a few minutes of talking about how your money moves.

How do I fund a seasonal stock-up?

A seasonal stock-up is usually best funded with a lump-sum small business loan, taken before the peak and repaid as the season’s sales come in. Retailers gearing up for Christmas, garden centres before spring, ski-hire shops before winter, and wholesalers ahead of end of financial year all face the same pattern: buy early, sell later.

Three tips for getting it right:

• Order earlier than feels comfortable. Suppliers often give better terms, and you avoid stock-outs in week one of the peak.
• Borrow for the stock, not the whole season. Size the loan to the order, and let the season’s takings cover running costs.
• Plan the tail. Think about how you’ll clear slow sellers, so cash isn’t left sitting on the shelf after the rush.

How do wages, super and Payday Super affect cash flow?

Wages are the working capital cost that can’t wait, and super is now on the same clock. From 1 July 2026, under Payday Super, employers need super contributions to reach employees’ funds within 7 business days of payday, rather than quarterly. The super guarantee rate is 12%.

For many businesses this is a real shift. Super that used to leave the account four times a year now leaves every pay cycle. Over a year the total is the same, but the old habit of using the quarter’s float for stock or supplier bills has gone. The Fair Work Ombudsman has a plain-English summary of the change.

A business line of credit works well here: it sits in the background, and on the odd payday when a big customer is late, you draw what you need and repay when the payment lands.

How should I plan for BAS?

Plan for BAS by setting aside GST and PAYG withholding as you collect them, and use finance to smooth a lumpy bill rather than as a habit. Quarterly BAS is due on 28 October, 28 February, 28 April and 28 July, and monthly BAS on the 21st of the following month. Lodging online can give you an extra two weeks for most quarters, and tax agents may have further extensions.

If a BAS bill lands in a tight month, the options are an ATO payment plan or business finance. Since 1 July 2025, the ATO’s general interest charge is no longer tax-deductible, so talk to your accountant about how each option works for your business. Our guide to managing BAS and tax cash flow covers set-aside habits that make BAS a non-event.

Example scenario — illustrative only. A Hobart homewares boutique heads into October with strong pre-orders for Christmas. The owner uses a small business loan to place her full holiday order in one go, securing her supplier’s early-order terms. She also sets up a modest line of credit as a payday buffer for the extra casual staff she’ll roster over December. The loan repays from the season’s sales, and the line of credit is drawn on for only two paydays.

How much working capital finance should I take?

Take enough to close the gap, plus a sensible buffer, and no more. A quick way to size it:

1. List what goes out before the cash comes back: stock, materials, wages, super, rent.
2. Estimate how long until customers pay, based on your actual history rather than your invoice terms.
3. Subtract the cash you already have available without dipping below a comfortable minimum.
4. Add a small buffer for the job that runs over or the customer who pays late.

That number is your working capital need. Loans over $150,000 need financial statements alongside bank statements, so if your gap is large, have those ready. Every loan is priced on your business’s individual situation, and our lending specialists look for the sharpest option available for yours.

Close the gap and keep growing

Know your gap, and the right product follows. Have your online banking login, photo ID and ABN ready, then send your 60-second enquiry. It doesn’t affect your credit score, and a lending specialist will help you match the gap to the right finance.