Business line of credit for cash flow that comes and goes

Built for gaps that repeat

Some cash flow problems are not one-offs. A labour hire business pays wages weekly but invoices monthly. A retailer stocks up every season. A trade business waits on progress claims every few weeks. Taking out a new loan each time is slow and expensive. A line of credit sits ready, so you draw when the gap opens and repay when the money arrives.

How a line of credit works in practice

1. A lender approves a limit based on your business.
2. You draw funds into your account when you need them, often within minutes once set up.
3. Repayments return the available balance to the limit.
4. You can draw again, as often as the terms allow.

Because you pay for what you use, a line of credit can be cheaper than a term loan for gaps that last only weeks at a time. It can also be more expensive if you draw the full limit and leave it there, so treat it as a revolving tool rather than a permanent loan.

Line of credit versus bank overdraft

Feature	Bank overdraft	Alternative line of credit
Who it suits	Established businesses with clean files	Businesses banks have cut or declined
How the limit is set	Financials, credit score, security	Bank statements and account conduct
Tax debt	Often withdrawn or refused	Considered case by case
Paperwork	Full financials	Often low doc

If your bank has reduced or cancelled an overdraft, our page on business overdraft alternatives explains your options, and refused overdraft increases covers why banks pull back.

Using a line of credit well

• Know your cycle. Map when money goes out and comes in with the cash flow gap calculator.
• Repay as money arrives. A line that is always fully drawn has become a term loan in disguise.
• Keep it for operating gaps. Fund equipment and vehicles separately.
• Watch the fees. Some lines charge a monthly fee on the limit even when unused.

When property helps

Unsecured lines of credit are sized on turnover. If you need a larger limit, or credit issues make lenders hesitant, a property-secured facility can provide more room. Secured loans run anywhere from $20k to $5m with no valuation needed before approval.

An illustrative example

A labour hire firm pays its workers every Friday and invoices clients monthly. Every month there are three or four weeks where wages leave the account long before client payments arrive. A line of credit sized on its deposits covers each payroll, and as client payments land, the balance is repaid and the limit is ready for the next cycle.

The firm pays only for the days the money is drawn. A fixed term loan would have cost more for the same result, because it would have been fully drawn all month.

See what limit you could access

Enquire in a minute and tell us how your cash flow cycles. We do no credit check to talk, a human reviews it, and nothing is passed on. Ask about a line of credit.