Payday super started on 1 July. Super now goes out of your account with every pay run instead of sitting there until the end of the quarter. On 1 October the card surcharging ban starts, so businesses that pass merchant fees on to customers now will have to wear those fees themselves.
Both changes hit the same place: your operating account. SME cashflow confidence has fallen from 70% to 60% since February. One business in five has already put off planned investment because of it, and around 62% of those taking card payments expect October to mean either higher prices or a thinner margin.
Deciding to fund the gap is easy. Picking the wrong facility is what costs you.
Four products cover most SME cashflow needs: a business overdraft, invoice finance, trade finance and revenue-based lending. They fix different problems and they are priced very differently.
| Tool | What it fixes | Security |
|---|---|---|
| Business overdraft | Money coming in later than it goes out, and lumpy bills | Property, or a clean credit history |
| Invoice finance | B2B customers who pay slowly | The invoices, no property needed |
| Trade finance | Stock you pay for before the sales come in | Purchase orders and supplier terms |
| Revenue-based lending | A lump sum when you have no property to offer | Future card and POS takings |
Business overdraft
An overdraft is a limit attached to your business transaction account. You draw on it and pay it back as you like, and you pay interest only on the amount you are using, not on the whole limit.
The RBA series for small business variable overdrafts was 10.51% p.a. in April 2026. Actual rates vary more than that average suggests. The majors charge from roughly 9.95% to 20% p.a. depending on security, and unsecured non-bank facilities cost more again.
It suits a business with predictable income but bills that land at awkward times. For example, payroll going out before invoices are paid, quarterly BAS, a yearly insurance renewal, and now super going out every pay cycle instead of every quarter. Most businesses use the overdraft as the base and add something else on top.
The catch is how the limit is set. Lenders base it on average monthly turnover. A fast-growing business, or one coping with the new super timing without cash in reserve, often finds the limit is tightest right when it needs it most.
Invoice finance
Invoice finance turns the money customers owe you into working capital. The financier advances 80 to 85% of an approved invoice the day you issue it. Once your customer pays, it releases the rest, less its fee.
There are two charges. A facility fee of roughly 1.5 to 3% p.a. on the limit, and a discount charge on the money you draw, usually the same as 6 to 12% p.a. depending on how reliable your customers are and how much of your book sits with a few of them. All up, it usually costs well under unsecured working capital.
The invoices are the security, not property. That is the main reason it suits a service business with a solid list of customers and nothing to mortgage. Trade contractors, professional services firms, logistics operators and manufacturers selling on 30 to 90 day terms are the usual users.
You need business customers (B2B) for it to work. Sales to consumers and retainer billing leave nothing to advance against. Most financiers also get stricter when a single customer makes up more than about a quarter of the book.
Our invoice and debtor finance page covers how these facilities are set up across our panel.
Trade finance
Trade finance pays your supplier so you don't have to wait for the sale. The lender pays for the order directly against a verified purchase order or letter of credit, and you pay it back once the goods sell.
It is priced per transaction, not as a yearly rate. Expect 1.5 to 4% of the order value on a 90 to 120 day facility. Some lenders charge a flat fee each time you draw. Others charge a discount rate on a revolving limit.
It suits importers, wholesalers and manufacturers that carry physical stock. Stock has to arrive before it can sell, and the order often goes in months before the money comes back. Trade finance covers that period without using up your overdraft or cash reserve.
The limit is the purchase order. Lenders want the verified order, the supplier terms and proof you have an established buyer. Businesses that order now and then will find it harder than those with a regular supplier contract.
Our cashflow finance page sets out the lender types we use for trade and working capital facilities.
Revenue-based lending
Revenue-based lending gives you a lump sum and takes it back as a fixed share of your daily or weekly card takings, usually 5 to 20%. Repayments go up and down with your sales, so a quiet fortnight costs less than a busy one.
It is priced with a factor rate, not an interest rate. A factor of 1.25 means you pay back $125,000 on $100,000 drawn. The term is however long your takings take to clear the balance, so the real yearly cost is broadly 25 to 60% p.a. It goes up, not down, the faster you repay.
Hospitality, retail and health clinics with steady card sales are the main users. You don't need property security, approval is easier than for a bank facility, and settlement is often inside 24 to 48 hours.
It is also by far the most expensive option here. It makes sense in a narrow set of cases: strong card sales, no property to offer, and a short-term need with a clear end date. Use it as a bridge, not as your everyday facility.
How to choose
The 2026 changes don't hit every business the same way. A hospitality operator with a high wage bill and the October surcharging deadline needs something fast that needs little security. That is an overdraft if there is property behind the business, or revenue-based lending if there is not. A subcontractor with a few hundred thousand owed on 60-day terms needs invoice finance, not a loan. An importer buying Christmas stock in August needs trade finance.
Above roughly $2M turnover, most businesses end up with two facilities: an overdraft as the base, and a debtor or trade line doing most of the work. Both need to be the right size, and they should not be fighting over the same security.
Have five things ready for a first conversation:
- annual turnover
- whether you sell to businesses (B2B) or consumers (B2C)
- how many days customers take to pay on average
- whether you carry stock
- what security is already tied up
Those five answers decide which lenders will look at the deal and at what price.
For a wider view of which lenders do what, read our guide to the six categories of business lender in Australia first.
If you have a cashflow problem and want a broker's view on structure and which lenders will be interested before you approach anyone, the application form is below. Most enquiries get a reply within four business hours.
Sources
- Australia lending rate, small business variable overdraft, CEIC / RBA data
- SME confidence hits 2026 low as payday super and surcharging bite, Australian Broker
- Payday super looms as unprepared SMEs grapple with cash flow strain, ScotPac
- Invoice finance, ScotPac
- Payday super set to tighten SME cashflow and working capital cycles, Australian FinTech