Business-purpose funding for established Australian SMEsPre-launch: register for funding updates and early access
SME Capital Partners
Funding readiness

Repayment capacity is a cash-flow question, not just a revenue number.

A growing company can still be unable to service additional debt if margins are thin, customers pay slowly or existing obligations absorb operating cash. Prepare the repayment story before discussing a facility.

Start with operating cash flow

Understand how much cash the existing business generates after normal operating costs and before adding a new financing commitment.

Include existing finance

Loans, leases, equipment finance, credit cards and other scheduled commitments reduce the cash available for a new facility.

Stress the assumptions

Consider what happens if revenue is lower than forecast, a major debtor pays late, margin falls or a project is delayed. A repayment plan should not depend on every assumption being perfect.

Match facility structure to purpose

A short-term working-capital need and a multi-year investment do not necessarily suit the same repayment profile. The commercial terms need to match the cash-generation timeline.

Forecast cash, not just accounting profit

Business.gov.au notes that a cash-flow forecast helps estimate whether income will cover future costs and can help a business plan for shortages and surpluses.

Official source

General information only. This page does not constitute legal, tax, financial or credit advice. SME Capital Partners is in pre-launch and is not currently offering or approving credit through this website.