01
Shorter terms usually mean larger individual repayments. Check they sit comfortably inside normal cash flow.
Working capital
Working capital for the gap between paying and being paid.
Working capital funding covers the day-to-day costs of running a business: stock, suppliers, wages and the timing gaps between them. The right structure depends on whether the need is one-off or recurring.
Check my funding options
In short
Updated
What is working capital funding?
Working capital funding is business finance used for day-to-day running costs such as stock, suppliers and wages, rather than a single long-term asset. In Australia it is offered by banks and non-bank lenders, either as a lump sum repaid over a set term or as a revolving limit the business draws on as needed.
How it works
Working capital, explained.
Working capital describes funding used for the ordinary running of a business rather than a single long-term asset. It can be provided as a lump sum repaid over a set term, or as a revolving limit the business draws on as needed.
Many non-bank lenders offer shorter-term working capital products assessed largely on business bank statements and trading performance. Banks may offer overdrafts or working capital facilities with different documentation requirements.
Often considered when
Where it tends to come up.
- Stock needs to be bought ahead of a busy period
- Suppliers or wages fall due before customer payments arrive
- A seasonal dip needs to be bridged
- An unexpected cost would otherwise drain operating cash
What lenders commonly look at
- 01Monthly turnover and how consistent it is
- 02Time trading under the current ABN
- 03Business bank account conduct, including dishonours
- 04Existing facilities and their repayments
- 05Tax position with the ATO
- 06Industry
Each lender weighs these differently, and criteria change over time.
Worth weighing
Before you apply.
02
If the need keeps recurring, a line of credit may be more efficient than taking a new lump sum each time.
03
Compare the total cost of the facility, not only the size of each repayment.
General information only. It does not take your circumstances into account and is not a recommendation, offer or approval. Funding is subject to lender assessment, eligibility and terms.
Answers
Working capital questions
What can working capital funding be used for?
Common uses include buying stock ahead of a busy period, paying suppliers or wages before customer payments arrive, bridging a seasonal dip and covering an unexpected cost that would otherwise drain operating cash. It is for business purposes, not personal expenses.
Is a working capital loan the same as a line of credit?
Not quite. A working capital loan is usually a lump sum repaid over a set term. A line of credit is an approved limit the business draws on and repays as needed. If the need keeps recurring, a line of credit may be more efficient than taking a new lump sum each time.
Do I need security for working capital funding?
Not always. Many non-bank working capital products are assessed largely on business bank statements and trading performance rather than property security. Larger amounts or longer terms may require security. Requirements vary between lenders and products.
How does Tennanova help with working capital funding?
Tennanova's Funding Check shows whether working capital funding is among the funding structures worth exploring for your business, based on your answers. It involves no credit enquiry and is general information, not an offer or approval. Tennanova is not a lender and does not provide credit.
Funding Check
Know what may fit before you apply.
Tell us about the business. We'll show you the funding structures that may be worth a closer look, then you decide whether to go further.