Working capital for the gap between doing the work and getting paid.

Planned business-purpose facilities for established SMEs facing a defined operating cash-flow requirement, subject to assessment and final terms.

What matters

Start with the commercial reality.

Funding should address a defined business need and sit within a credible plan for the company after the facility is advanced.

Timing gap

A strong order book or profitable project can still create pressure when payroll and suppliers fall due before customer receipts.

Operating purpose

Funding should map to a genuine requirement such as payroll, suppliers, inventory, fuel, materials or project mobilisation.

Forward capacity

The assessment needs a credible view of how the facility sits within future cash flow rather than only the current shortage.

Separate profit from cash flow

Profitability and cash availability are different. A cash-flow forecast can help management identify shortages and surpluses before they occur. business.gov.au provides a cash-flow forecasting framework.

Define the funding requirement

A useful request identifies the amount, timing and exact operating uses of the proposed facility. A broad request for “more cash” is harder to assess than a documented payroll, supplier, stock or project requirement.

Prepare the evidence

Current management accounts, bank statements, aged receivables/payables, existing facilities and a forward cash-flow forecast can help explain why the requirement exists and how it is expected to resolve.

Avoid using debt to hide a structural loss

Funding may help a temporary timing mismatch. It is not a substitute for addressing persistent losses, weak pricing, excessive overhead or uncollectable receivables.

Official sources & further reading

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.