Quick answer
Before a call about a cash flow gap, know how big the gap is, the date it bites (payroll, BAS, rent, a supplier bill), what money is due in and when, and your lowest bank balance in recent months. A simple week-by-week view of the next couple of months helps most. The specialist will ask what caused the gap, whether it recurs and when cash returns — which decides between a lump sum and a revolving limit.
Key points
- Size the gap in dollars and put a date on when it bites.
- Show when money comes back in — that's the repayment plan.
- Once-off gaps and recurring gaps usually suit different facilities.
- A simple week-by-week forecast turns a vague worry into a fundable plan.
Plenty of profitable businesses run out of cash. The work gets done, the invoices go out, the money is genuinely coming — just not before payroll, the BAS or the supplier who wants paying on the 30th. That’s a cash flow gap, and it’s one of the most common reasons owners ask us to ring them.
The good news: timing problems are among the most fundable problems in business. The key is showing the specialist it is a timing problem, and when it ends.
What will the specialist ask about the gap?
- How big is it? In dollars, not “a bit short”.
- When does it bite? The actual date: payday, BAS due date, rent, a supplier’s terms.
- What caused it? A slow month, a large job with delayed payment, a seasonal dip, growth that’s outrun cash.
- Is it once-off or does it come back? Every winter? Every big contract?
- When does money come back in? Invoices due, progress claims, the busy season starting.
- How has the bank balance looked lately? Your lowest point in recent months tells a story.
The fourth question often decides the facility. A gap that happens once suits a different product from one that turns up every quarter.
What numbers should I have ready?
| Have ready | Why |
|---|---|
| The gap in dollars and the date it bites | Sets the amount and the deadline |
| Money due in, with dates | This is your repayment plan |
| Your lowest bank balance in recent months | Shows how tight things usually run |
| Average monthly turnover | Sizes unsecured options |
| Recent business bank statements (PDF) | The evidence behind all of the above |
| A simple week-by-week forecast | Turns a worry into a plan a lender can read |
If you don’t have a forecast, business.gov.au has a free cash flow statement template. Opening balance, money in, money out, closing balance — week by week or month by month, with estimates clearly labelled. The call-prep tool will also give you a checklist tailored to your amount and urgency.
What does a gap look like on paper?
Here’s an illustrative example for a small commercial cleaning business that has just won a bigger contract. Figures are made up for the example, starting from a $12,000 bank balance.
| Week | Money in | Money out | Closing balance |
|---|---|---|---|
| 1 | $14,000 | $16,500 (wages, supplies) | $9,500 |
| 2 | $6,000 | $18,000 (wages, new equipment) | -$2,500 |
| 3 | $8,000 | $16,500 (wages, BAS) | -$11,000 |
| 4 | $31,000 (first contract payment) | $15,000 | $5,000 |
The business isn’t failing. It’s growing faster than its cash. The gap is roughly $11,000 for about a fortnight, with a clear date when it closes. That’s a conversation a specialist can work with.
With your own version of that table in hand, request your call-back and the first call can get straight to options.
Loan, line of credit or something else?
Business funding comes in more shapes than a single loan. business.gov.au’s overview lists lines of credit, overdrafts, invoice finance and trade credit, among others. For a cash flow gap, the common choices look like this:
- A short-term loan can suit a one-off gap with a clear end date.
- A line of credit or revolving limit can suit gaps that come back — seasonal businesses, contractors with lumpy progress payments, retailers buying ahead of busy periods.
- Property-secured options from $20,000 to $5,000,000 widen the choices when the gap is large or longer-lasting.
- Unsecured options for trading businesses typically run from $5,000 to $500,000, based on turnover and bank statements.
What else can close the gap?
Sometimes the answer isn’t only borrowing. business.gov.au suggests several ways to improve cash flow, including invoicing earlier, chasing overdue payments promptly, negotiating deposits on custom work, renegotiating supplier terms and reducing slow-moving stock. A good specialist will ask whether any of these are already in play, and a mix of finance and fixes is often the strongest answer.
If the gap is being caused by rising supplier costs, our guide on supplier price rises squeezing cash covers what to do first. If it’s a customer paying late, see a cash plan for when a big customer pays late.
What should I ask the specialist?
- If the cash arrives sooner than expected, can I repay early, and what does that save?
- Is a revolving limit an option instead of a lump sum?
- What’s the total cost in dollars for the period I actually need it?
- What happens if the money due in arrives late?
More on the last one in exit and early repayment questions.
What if the gap keeps coming back?
If you find yourself having the same cash flow conversation every few months, it’s worth stepping back. Recurring gaps usually have a cause that can be fixed or planned for:
- Seasonality. The quiet months are predictable, so a standby limit arranged in the busy months is often cheaper and calmer than a rushed loan later.
- Payment terms mismatch. You pay suppliers in 14 days but customers pay you in 45. Renegotiating either side can shrink the gap permanently.
- Growth. Every new contract needs cash upfront. A facility that grows with the business may suit.
- Margin. If the business isn’t making enough on each sale, no facility fixes that. Pricing does.
A good first call will ask which of these is behind your gap, because the answer changes the recommendation.
Ready to close the gap?
A cash flow gap is a timing problem, and timing problems are what short, well-structured finance is built for. You won’t get a credit check just for requesting a call, your enquiry isn’t blasted around to lenders you’ve never met, and the specialist reads your situation before ringing.
Please size the gap honestly and give us your state and any property you own — accurate answers are how we match you with the right option first time. Choose a time and we’ll call you.
Frequently asked questions
What's the difference between a cash flow gap and a loss?
A cash flow gap is a timing problem: the money is coming, but after the bills are due. A loss is when the business spends more than it earns over time. Lenders are far more comfortable funding timing problems, so it's worth being clear which you have.
Should I get a loan or a line of credit for a cash flow gap?
If the gap is a one-off with a clear end, a short loan may suit. If it comes back every season or every big job, a revolving limit you draw and repay can fit better. Ask the specialist to compare both in total dollars.
How far ahead should my cash flow forecast go?
For a gap conversation, the next couple of months week by week is ideal. business.gov.au's free cash flow statement template works well, and you can label figures as actual or estimated.
Can I fund a cash flow gap without property?
Often, if the business is trading. Unsecured and cash-flow options typically run from $5,000 to $500,000, sized on turnover and bank statements. Property security widens the options for larger or longer needs.
What if the gap is caused by a customer who hasn't paid?
Bring the invoice, the due date and what you've done to chase it. The specialist will want to know how likely payment is and when. Our guide on big customers paying late covers the steps to take alongside any finance.