Business Owners: Get Money Before You Need It

If you're a business owner, you've probably experienced the crunch — a supplier payment due, a customer delaying their invoice, or an opportunity to bulk-buy stock or invest in marketing… and not enough cash in the bank to act on it.

This week, we helped a client who needed $30,000 in their account within three business days. It was urgent, and we made it happen — but it’s a stressful way to manage your finances. And the truth is, we see situations like this every few weeks.

The real solution?
Get money before you need it.

There are a number of smart, low-commitment business finance options available that can give you peace of mind without tying up cash — but like most things in finance, the right fit depends on how and when you plan to use the money.

1. Rainy Day Overdraft Facilities (For Peace of Mind)

These are the "just in case" facilities — perfect to have in place even if you don’t expect to use them often.

• 💵 Limits up to $100K+

• 💰 Annual fees:

  • $495 (if limit is under $100K)

  • $795 (if limit is over $100K)

• ✅ No upfront or establishment fees

• ❌ Only pay interest when you draw on it

• ⚠️ Interest rates typically range from 18–25%

Because these are unsecured, quick-access facilities, the interest rates are high — but if you never draw on the funds, you only pay the flat annual fee.

These are ideal for:

• Short-term working capital crunches

• Unexpected supplier payments

• Cashflow timing gaps

• Opportunistic stock buys

You don’t want to use them for long-term funding — but having one ready can save you a huge amount of stress.

2. Business Loans (For a Clear Purpose)

If you’ve got a specific project or investment coming up — like a fit-out, equipment purchase, business acquisition or marketing campaign — then a structured business loan might make more sense.

• ✅ Lower interest rates: typically 8–13%

• 🔁 Fixed terms: 3 to 10 years

• 💳 Repayments: Fixed monthly repayments

• ⚠️ Upfront fees: Usually 0.5–2% of the loan amount

• 📌 Ideal for larger, planned investments

Because you’re using the funds over a longer period of time, interest rates matter more — and a business loan will often work out cheaper in the long run.

3. Mid-Tier Overdrafts (For Flexible Use)

Somewhere in between the two above are bank-grade overdraft facilities — either secured or unsecured.

These can give you more flexibility than a term loan, but at a lower cost than the high-rate rainy-day overdrafts.

• 💼 Line fees: ~1.5% p.a.

• 📉 Interest rates: 9–15% depending on lender/security

• ⚠️ Some establishment/setup fees may apply

These are good if:

• You need funds semi-regularly, but not constantly

• You want lower interest than short-term options

• You're okay with slightly higher holding costs for added flexibility

What Should You Do?

Every business is different — and the right product depends on how you operate, your cash flow cycles, and your risk appetite.

• If your business is stable, and you rarely run into tight cash spots, the rainy day overdraft is a great peace-of-mind tool.

• If you’ve got a clear project or investment coming up, a business loan will likely be more cost-effective.

• If you want flexible access to funds without the ultra-high rates, a mid-tier overdraft might hit the sweet spot.

We regularly help businesses set up the right facility before they need it — so they’re not scrambling under pressure or paying more than they should.

If you’re not sure which option makes sense for your business, feel free to reach out — happy to help you find the right fit.