Working capital loans in Australia
Working capital finance covers the ordinary running costs of a business, wages, stock, rent, supplier bills, when the timing of money coming in doesn't line up with money going out. It's not for buying a big asset; it's for keeping the lights on smoothly through a slow month or a growth spurt that ties up cash. The right product depends on whether the gap is a one-off or a recurring pattern.
Matching the product to the gap
A one-off shortfall and a recurring seasonal dip call for different tools.
- One-off gap: a short term loan repaid as cash recovers
- Recurring or seasonal gap: a line of credit you draw and repay
- Slow-paying customers: invoice finance against your receivables
- A specific purchase inside the gap: keep it separate from working capital
Keeping the cost sensible
Working capital is often short-term, and short-term finance can carry high annualised costs, especially factor-rate products. Because you're borrowing to smooth cash flow rather than fund growth directly, the cost eats straight into margin. Borrow the smallest amount that solves the problem, and compare offers on total dollars repaid.
The lenders on our panel
| Lender | Advertised rate from | Loan size | Typical speed | Products | Industry code |
|---|---|---|---|---|---|
 Lumi | Quote-based | $5,000 – $1,000,000 | Same business day | Term loan, Line of credit | AFIA Code signatory |
 Moula | From 15.99% p.a. | $10,000 – $500,000 | Next business day | Term loan | AFIA Code signatory |
 Prospa | Quote-based | $5,000 – $500,000 | Funds within an hour of signing | Term loan, Line of credit | AFIA Code signatory |
Terms as at July 2026, from each lender's own site. “Quote-based” means the lender prices each loan individually (Lumi quotes a total repayment; Prospa uses simple interest) rather than publishing a headline rate. Figures are indicative, not a quote; your rate depends on the lender's assessment. Verify current terms with the lender.
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Common questions
- How is working capital finance different from a normal loan?
- It's the same underlying products, term loans, lines of credit, invoice finance, just used for day-to-day operating costs rather than a capital purchase. The framing is about purpose, not a separate product.
- How much working capital should I borrow?
- Enough to bridge the specific gap, and no more. Over-borrowing means paying interest on money you don't need. A cash-flow forecast for the next few months usually shows the right figure.
- Is invoice finance a good fit?
- If your cash is tied up in unpaid invoices from creditworthy customers, invoice finance can release it without adding conventional debt. It works best when slow payment, not low sales, is the problem.