What is working capital finance?

Working capital finance is funding that may help a business manage timing gaps between money coming in and money going out. It may be used for expenses such as stock, supplier payments, wages, ATO repayments, project costs or other business needs, depending on the circumstances and lender requirements.

Is cashflow finance suitable for every business?

No. Cashflow finance should be reviewed against the cause of the pressure, repayment capacity, existing commitments, costs and timing. In some cases, operational changes, debt restructure or payment cycle review may need to be considered before new funding.

Can unpaid invoices be used to support cashflow funding?

In some situations, invoice finance or debtor finance may be reviewed where unpaid invoices are a major cause of the cashflow gap. Lenders may consider the quality of invoices, customer payment history, debtor spread and other supporting documents.

Should supplier payment cycles be reviewed to improve cashflow?

Sometimes cashflow improves by aligning supplier payments with customer receipts, but this should be reviewed carefully so it does not damage supplier relationships, supply continuity, or available discounts.

What happens after I complete the cashflow assessment?

Novaseed will review the information provided and may contact you to discuss the cashflow pressure, potential next steps and documents that may be required for a more detailed review.

Cashflow & Working Capital Finance Guide | Novaseed — Novaseed

Cashflow & Working Capital Finance for Australian Businesses

Book a Conversation

As a business owner myself, I understand that cashflow pressure can build even when a business is profitable. Customer payments may arrive after wages, suppliers, ATO repayments, rent, loan repayments, stock purchases or growth costs are already due.

This page is for Australian business owners, who want a practical review of their cashflow position before considering business finance. Novaseed Finance helps business owners understand what is causing the pressure, what funding options may be worth reviewing, and whether finance is the right next step.

Take the Cashflow Assessment

Working capital pressure often comes from timing rather than one single issue. A business may have steady revenue but still feel stretched if cash is tied up in unpaid invoices, stock, equipment, tax repayments or existing finance commitments.

Common cashflow pressure points may include:

Customers taking longer than expected to pay invoices
Unpaid or overdue invoices building up
Supplier payments falling due before customer receipts arrive
ATO debt or ATO payment arrangements affecting monthly cashflow
Existing business loan repayments reducing available cash
Stock, inventory or materials needing to be purchased before revenue is received
Growth costs such as hiring, fit-out, equipment, marketing or larger contracts
Seasonal income patterns creating uneven cashflow
Short-term gaps between completed work and paid work

If ATO repayments are part of the issue, you may also want to read Novaseed's page on ATO debt and business lending.

If existing loan repayments are causing pressure, a business debt restructure review may also be relevant.

Customer invoice timing and unpaid invoices

For many businesses, cashflow pressure starts with customer payment timing. The business has done the work, issued the invoice and earned the revenue, but the cash has not arrived yet.

This can affect trades, professional services, wholesalers, transport businesses, agencies, consultants, suppliers and other businesses that invoice after work is completed or goods are delivered.

Cashflow & Working Capital Finance for Australian Businesses

Customer invoice timing and unpaid invoices

Novaseed may review:

Contact

Connect with us