Matching repayments to cash flow
A fixed repayment lands on a fixed date. Business income does not. Here is how to think about the gap.
Start with the real shape of your month
Most equipment repayments are the same every month or fortnight. Revenue usually is not. Before worrying about the loan, draw out twelve months of money in and money out. Mark the weak months and the heavy-spend months (insurance renewals, registration, BAS and tax instalments).
Try this: list your repayment as a percentage of an average month’s takings, then again for your worst month. If the second number makes you wince, that is useful information.
Common levers owners talk about
| Lever | What it can do | Watch out for |
|---|---|---|
| Longer term | Lowers each repayment | Usually more interest over the life of the loan |
| Different repayment frequency | Aligns outgoings with when you are paid | Check how the lender calculates interest and fees |
| Cash buffer | Absorbs slow invoices | Takes time to build; competes with other uses of cash |
| Refinancing | May change term or structure | Break costs, new fees, a longer total cost. See the refinancing guide |
If you are already behind
Speak to your lender early. Australian lenders have hardship processes, and the sooner you ask, the more options usually exist. The National Debt Helpline (1800 007 007) and ASIC MoneySmart have free, independent information.
Where finance enquiries fit
Some owners explore whether a different structure might suit their cash flow. If that is you, you can start a free, no-obligation enquiry. Nothing on this page is personal advice, and any outcome is subject to lender criteria and approval.
More reading: our blog covers invoice timing, buffers and seasonal planning in detail.
Want to see what options might exist?
It is free to enquire and there is no obligation. Any finance is subject to lender criteria and approval.