A business cash line: cash on tap for gaps that keep coming back

Some cash gaps are one-offs. Most aren’t. The same pinch comes back every quarter when the BAS is due, every month when the big customer pays late, every spring when the stock order goes in. Taking out a new loan each time is slow and expensive. A business cash line is set up once and waits until you need it.

How does a business cash line work?

You’re approved for a limit. Say $60k. When a gap opens, you draw what you need, perhaps $18k to cover wages until an invoice is paid. When the invoice lands, you repay the $18k and the full $60k is available again.

You typically pay:

• interest or a fee on the amount drawn, for the time it’s drawn
• possibly a facility or account-keeping fee

Pricing varies by lender and by business, which is why we never quote a rate before understanding your situation.

When does a line beat a lump-sum loan?

Your situation	Better fit
One stock order, one tax bill, one repair	Lump-sum business cash loan
Gaps every month of different sizes	Cash line
Seasonal build-up, then a peak	Either; a line avoids paying for cash during the peak
Customers on long terms, growing fast	Cash line, reviewed as turnover grows
Large amount secured on property	Property-backed facility

The test is simple: if you can’t predict exactly when or how much, a line usually wins.

What gaps does a cash line handle well?

• BAS quarters. Draw to pay on the due date, repay over the following weeks. Our page on the BAS quarter cash crunch explains the timing.
• Slow-paying customers. Cover costs while invoices sit on 30, 60 or 90-day terms. See slow-paying invoices.
• Payday Super. From 1 July 2026, super has to reach employees’ funds within 7 business days of payday, so super now leaves with every pay run instead of quarterly.
• Opportunistic buying. A supplier offers a bulk deal on Friday; the line is already there.

Same gap, every month? Ask about a cash line and we’ll see what limit your turnover could support.

How do you use a cash line well?

A line is a tool, not extra income. A few habits keep it working for you:

1. Repay when the money lands. Don’t let the balance sit at the limit for months.
2. Track why you drew it. Each draw should match a specific gap with a specific exit.
3. Watch for a permanent balance. If the line never comes back to zero, the business may have an underlying profit problem, not just a timing one.
4. Review the limit yearly. As turnover grows, a higher limit may make sense; if gaps shrink, a lower one saves fees.

How do I know what limit I need?

Map your next two or three months of cash in and out. The deepest point your account would hit, below the buffer you like to keep, is a good guide to the limit. Our cash gap calculator does that in a few minutes, and the find your cash gap guide explains how to build the forecast yourself.

What does a lender need to set up a cash line?

Because a line can be drawn again and again, lenders want to understand your cash cycle, not just a single purchase. Expect to provide:

• Recent business bank statements covering every account the business uses
• ABN and, for companies, ACN, plus ID for directors or owners
• A rough picture of your gaps: how often they happen, how deep they go and how quickly money comes back
• Details of other facilities, such as an overdraft, loans or cash advances

Some lenders also ask for recent BAS or management accounts for larger limits. A specialist can tell you upfront what your situation will need, so you’re not drip-fed requests.

Cash line or overdraft from your bank?

If your bank will give you an overdraft on terms you’re happy with, it’s worth considering. Non-bank cash lines tend to suit owners who:

• want an answer in days rather than weeks
• have been declined or offered a limit that’s too small
• don’t want the facility tied to property
• have a credit history or ATO debt that a bank won’t look past

There’s no rule that says you can only have one. Some businesses keep a small bank overdraft for day-to-day wobbles and a larger cash line for bigger, less frequent gaps.

An illustrative example

Illustrative only. A commercial cleaning company invoices most clients monthly on 30-day terms, but wages are paid weekly. Every month the account dips for about two weeks before invoices are paid. A $70k cash line covers the dip; the owner draws around $40k most months and repays it as clients pay. No new application each month, no scramble on payday.

Is a cash line right for your business?

If your cash goes up and down like a yo-yo, a line can smooth it out without the hassle of fresh borrowing every time. Finding out takes about 60 seconds, and there’s no credit check when you ask. We don’t scatter your details across a long list of lenders either. A real person reads your enquiry, gets a feel for your cash cycle and calls you.

Tell us your turnover and how often the gaps appear as accurately as you can, and we’ll size it properly from the start.

See if a cash line fits →