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Cash Flow - Smooth the Gap Between Invoice & Payroll

Working Capital Loans
- line of credit, invoice finance, overdraft

Name: Mortgagefy
Address: Sydney, NSW, AU
Telephone: +61432634648
Price range: Free

By the Mortgagefy Team · Credit Rep 532656 of ACL 348324 · Published 2026-10-15 · Last reviewed 2026-10-15

Line of credit, business overdraft, invoice finance and debtor finance - the right structure depends on how your receivables, payables and payroll are timed. We match the product to the cash-flow pattern.

Start Your Free Assessment 0432 634 648

Free Business & Commercial Assessment

Takes under 3 minutes. We'll match you with the right lender for your situation.

Who this is for

Sydney businesses with real revenue but awkward cash-flow timing between invoices sent and payroll due.

B2B business with 30-60 day customer payment terms
Trades business where materials are paid day one, invoice settled day 60
Importer paying for stock on dispatch, revenue 90 days later
Business with lumpy seasonal revenue (quarterly big contracts, monthly costs)
Service firm with large receivables but awkward cash buffer
Growing business where every month's growth consumes working capital

The real challenge

Profitable businesses go broke on cash flow more often than on bad margins. If you invoice $500k a quarter but your payroll is $120k a month, you're carrying 2 months of payroll out of pocket. For most SMEs, financing this gap is cheaper than the alternatives (missing payroll, delaying payments to suppliers, drawing from an inefficient overdraft).

The product that fits depends on your cash-flow pattern: a line of credit is best when you borrow for a few days and repay - like a credit card. Invoice finance (also called debtor finance) is best when 60%+ of your revenue is on B2B invoices with 30-90 day terms. An overdraft suits businesses with regular trough weeks. Picking the wrong one costs you 1-3 percentage points.

How Mortgagefy helps

Right product for the pattern. We ask about your invoicing, payment terms and payroll cycle before recommending anything. Line of credit, invoice finance, overdraft or hybrid.
Invoice finance specialists. Debtor finance / invoice discounting lenders assess your customers' credit quality, not just yours. If you invoice strong B2B counterparties, you can access 80-90% of your invoice value within days of invoicing.
No-doc overdrafts for strong trading profiles. Many lenders will approve a $25k-$100k overdraft on credit-score alone.
Honest cost comparison. We show you the dollar cost per average month of use - not just the headline rate. Invoice finance looks expensive on the rate line but can be cheap on the dollar line if you use it briefly.

Need to model repayments first? Try our Sydney loan calculators for an indicative figure.

How it works

Cashflow conversation

20 minutes - revenue pattern, payment terms, payroll size, biggest regular squeeze.

Product shortlist

Line of credit, invoice finance, overdraft or hybrid - matched to your pattern.

Approval

Overdraft and small line of credit: usually the quickest. Invoice finance: takes longer (lender assesses your debtors).

Settlement & drawdown

Facility live; draw as needed; repay from receivables.

Get a personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Frequently asked questions

What's the difference between an overdraft, a line of credit and invoice finance?

Overdraft: attached to your trading account, you go negative up to a limit, repay as deposits land. Line of credit: separate facility, you draw and repay like a credit card. Invoice finance: lender advances 80-90% of each eligible invoice as you raise it; customer pays the lender, who releases the balance less fees.

What does invoice finance cost?

Typically 2-4% of the invoice value as a service fee (plus a small interest charge if the invoice sits unpaid for longer than typical). Headline rate looks expensive, but if invoices settle in 30 days the dollar cost per invoice is modest. We'll show you the dollar cost on your actual invoice run.

Will my customers know I'm using invoice finance?

Depends on the facility. Confidential (undisclosed) invoice discounting: your customer pays into a nominated account you control - no change visible. Disclosed invoice factoring: your customer pays the lender directly - they see the arrangement. Most B2B customers understand it's normal practice, but confidential facilities exist if preferred.

What size overdraft can I get without providing financials?

Most lenders will approve $25k-$100k on credit-score alone (ABN 2+ years, GST registered, no adverse). Over $100k typically needs BAS + 6-12 months bank statements. Over $250k typically needs full financials and tax returns.

How is a line of credit priced?

Interest-only on the drawn balance (annual rate varies by lender and your profile) plus an annual line fee charged on the full limit. If you draw rarely but want the limit available, the line fee is your main cost.

Can I combine invoice finance with a loan or line of credit?

Yes - common structure. Invoice finance covers short-term working capital tied to invoices; a line of credit or term loan covers longer-term capital (plant, fit-out, expansion). We'll show you the combined picture.

What happens if a customer doesn't pay an invoice I've financed?

Depends on whether it's with-recourse (you cover unpaid invoices) or non-recourse (lender takes the credit risk - costs more). We'll explain each and recommend based on your customer concentration.

Get your free working capital assessment

Line of credit, invoice finance, overdraft or hybrid - matched to your cash-flow pattern. Quick turnaround on most products.

Start Your Free Assessment Call 0432 634 648

Related guides

Business Loans Sydney

Term loans for working capital over 1-5 years.

Low Doc Business Loan

Alt-doc working capital for self-employed.

Short-Term Business Loan

Bridging a cash-flow gap over 1-6 months.

Equipment Finance

Buy assets without consuming working capital.

Commercial Property Loans Sydney

Long-term capital for premises purchase.

Business Loan to Finish Home Construction

Short-term bridging for the final build stage.

Information checked October 2026. This information is general in nature and does not take account of your personal objectives, financial situation or needs. Business, commercial and development finance eligibility, pricing and documentation varies by lender and changes frequently. Confirm current requirements with your chosen lender and seek professional advice before applying. Mortgagefy — Credit Representative 532656 of ACL 348324.

Working Capital Loans- line of credit, invoice finance, overdraft