Working capital finance funds the day-to-day cash-flow cycle of a business, the gap between paying for stock, wages and overheads and getting paid by customers. Almost every business carries this gap, and it widens with growth, seasonality and slow-paying debtors. The right facility smooths it so the business can trade and grow without being starved of cash.
It comes in several forms: business overdrafts and lines of credit for general flexibility, and invoice or debtor finance that advances cash against unpaid invoices. The right one depends on your trade, your debtor cycle and whether you have security to offer. Sized properly, against your actual working capital cycle rather than a generic small-business formula, it’s one of the most useful facilities a growing business can hold.
At Loanworx, we arrange working capital facilities across overdrafts, lines of credit and invoice finance. As an experienced finance broker, we size the facility to your real cash-flow cycle and match it to a lender that understands how your business trades.
Cash flow tight between paying out and getting paid? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
Working capital finance comes in a few forms, each suited to a different cash-flow need. Here are the main ones.
A business overdraft or line of credit gives you a flexible, revolving facility you draw on as needed and repay as cash comes in, paying interest only on what you use. It suits general cash-flow smoothing and unexpected gaps.
Invoice or debtor finance advances cash against your unpaid invoices, releasing the money tied up in your debtor book rather than waiting 30, 60 or 90 days to be paid. It suits businesses with slow-paying customers and growing debtors.
The facility should be sized against your actual working capital cycle, your work-in-progress, debtor days and seasonal peaks, not a generic small-business formula. The right size covers the real gap without over-committing the business.
A working capital facility that’s too small doesn’t solve the problem; one that’s too large costs more than it needs to. The right facility is sized to the real cash-flow cycle of your business, the lag between outlay and payment, the seasonal peaks, and the debtor book.
We map your working capital cycle, work out the facility type and size that fits, and match it to a lender that understands your trade and its rhythms. Whether that’s an overdraft, a line of credit or invoice finance, the aim is a facility that frees the business to trade and grow.
Working capital often sits alongside other commercial needs as a business grows. Explore our other commercial services below to find the right fit.
Borrow inside your self-managed super fund to acquire commercial property under a limited recourse borrowing arrangement.
Vehicle and fleet finance through chattel mortgage, lease or hire purchase, structured for your cash flow and tax position.
Short-term finance to bridge the gap between buying and selling, or to cover a timing shortfall.
Funding to buy a business or practice, including goodwill where the deal and lender support it.
Finance to acquire or refinance commercial investment property across office, retail, industrial and specialised assets.
Funding for residential and commercial development, from small builds through to multi-stage projects.
Review and refinance existing commercial debt to sharpen the rate, release equity or restructure the facility.
Working capital facilities are assessed on the business and its cash flow. These are the factors that matter most.
Lenders look at the gap between your outgoings and your income, your work-in-progress, debtor days and seasonal pattern, to size the facility to the real need.
We map the cycle so the facility covers the gap without over-committing the business.
An overdraft, line of credit or invoice finance each suits a different cash-flow profile. The right choice depends on whether your gap is general, seasonal, or tied up in slow-paying debtors.
We match the facility type to how your cash flow actually behaves.
Working capital facilities may be secured against property, debtors or business assets, or in some cases offered unsecured at a higher rate. What you can offer affects the size, rate and lender.
We structure the security to support the strongest terms.
Lenders assess the business’s ability to service the facility and how well existing accounts and debts are managed. Clean conduct and reliable income widen the options.
We present the business so it qualifies for the best available facility.
The industry, the customer base and the reliability of your debtors all feed into the assessment, particularly for invoice finance, where the quality of your debtors matters as much as your own position. We match the facility to a lender that understands your trade and its cash-flow rhythms.
Commercial finance isn’t only about the headline rate. It’s about being matched to a lender that will approve you, structuring the facility so it suits the business long term, and having someone manage the process. Here’s what working with us looks like.
We compare commercial facilities across a broad panel of major banks, second-tier lenders, non-bank funders and specialist commercial lenders, so you see a genuine spread of options. We match the deal to the lender most likely to approve it at a competitive rate, which often isn’t your everyday bank.
You deal with experienced brokers who expect to see trusts, companies, partnerships, partner distributions and complex security, and who know how to present your structure to a lender accurately rather than force-fitting it into a generic application.
From the first conversation to settlement, we prepare the submission, liaise with the lender, coordinate with your accountant and solicitor, and keep you updated at each stage, so the deal keeps moving and you’re never chasing it.
For most commercial transactions, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. For more complex scenarios a fee for service may apply, and we’ll disclose it in writing before any work begins. No surprises.
Working capital finance funds the day-to-day cash-flow cycle of a business, the gap between paying for stock, wages and overheads and getting paid by customers. It comes in forms like business overdrafts, lines of credit and invoice or debtor finance, and it smooths the cash-flow gap so the business can trade and grow without being starved of cash. We size the facility to your real cycle and match it to the right lender.
The main types are a business overdraft or line of credit, a flexible, revolving facility you draw on and repay as needed, and invoice or debtor finance, which advances cash against your unpaid invoices. Some businesses use trade finance too, for funding stock or supplier payments. The right one depends on your trade, your debtor cycle and whether you have security to offer. We help you choose the facility that fits.
Invoice finance, also called debtor finance, advances you cash against your unpaid invoices, so you receive most of the invoice value upfront instead of waiting 30, 60 or 90 days for the customer to pay. The balance, less a fee, comes through when the customer settles. It suits businesses with slow-paying customers and a growing debtor book, releasing the cash tied up in invoices. We arrange it with lenders who specialise in it.
It depends on the facility type and your business. Overdrafts and lines of credit are sized against your cash-flow cycle and security, while invoice finance is sized against your debtor book, often advancing a high proportion of eligible invoices. The key is sizing the facility to your real working capital need rather than a generic formula. We work out the right size with you before arranging it.
It depends on the facility and the lender. Working capital facilities may be secured against property, debtors or business assets, and some are offered unsecured at a higher rate for strong businesses. Invoice finance is effectively secured against your invoices. What you can offer affects the size, rate and which lenders will consider you. We structure the security to support the strongest terms available.
It varies by facility. A straightforward overdraft or line of credit for an established business can be arranged reasonably quickly, while invoice finance involves setting up against your debtor book, which takes a little longer initially but is fast to draw on once in place. We give you a realistic timeline and prioritise getting the facility live when cash flow is pressing.
Talk through your scenario with a specialist commercial broker, with no cost and no obligation. Call us on 1300 562 696 or get in touch and we’ll be back to you shortly, ready to map out what’s possible for your business.
Disclaimer: The information provided here is general in nature and should not be considered financial, tax or legal advice. You should consult your professional advisers, such as your accountant, solicitor and financial planner, to see whether a particular finance strategy is suitable for your business, ahead of a discussion with us that will be limited to how to arrange any funding required.
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