Because lenders approve facilities based on how your business looks today — not when you're under pressure. Applying while revenue is strong, your bank statements are healthy, and you're not stressed gives you access to better limits and lower rates. Setting it up now means it's already available if a slow month, a large project, or a late client payment creates a timing gap.

Best terms come when you least need it

A concreting business set up a $75K line during a strong quarter. Six months later when a major client stretched payments to 60 days, payroll was covered without a single stressful phone call.

Interest is only charged on what you draw — so an untouched facility costs little to nothing beyond a small monthly or annual facility fee, typically $50–$150/month depending on the lender and limit. Think of it like insurance: the cost of having it ready is a fraction of the cost of scrambling for funds at short notice.

Interest only on what you draw - Watch for facility/non-use fees

A labour-hire company pays $100/month to keep a $100K line open. They draw it roughly once a quarter for payroll timing — the annual holding cost is $1,200 against a facility that's saved them three near-misses.

Most established businesses with consistent monthly revenue qualify — trades, services, hospitality, logistics, healthcare, retail, and more. Lenders look for at least 6–12 months of trading history, regular deposits, and a business that isn't currently in financial difficulty. You don't need to own property or have perfect credit.

A 14-month-old commercial cleaning business qualified for a $60K facility based on $40K+ in consistent monthly deposits — no property security, no perfect credit score required.

Revenue and cash flow history carry more weight than your credit score with most non-bank lenders. A score in the low-to-mid 600s is workable if your bank statements show consistent, clean revenue. Lower scores typically mean a smaller limit or a slightly higher rate — but they don't automatically mean a decline.

Lower score = higher rate, not necessarily a decline

A landscaping business with a 625 credit score was approved for $40K based on 18 months of steady $65K monthly revenue — the score affected the rate, not the outcome.

Most applications require 6-12 months of business bank statements, a recent BAS or tax return, and proof of ID. Some lenders also ask for an ABN/ACN registration and a brief summary of your business. The more complete your documents at the time of application, the faster approval moves.

Complete docs = faster approval

A tiling subcontractor received conditional approval in under 4 hours by uploading 6 months of statements and a BAS at the time of application — no follow-up requests needed.

Non-bank lines typically carry annualised rates of 14–35%, charged only on the amount drawn and for the days it's outstanding. There may also be a small draw fee per transaction. The short-term nature of most payroll draws keeps the real dollar cost low — far less than a missed payroll or a late payment penalty.

Charged on drawn amount only, not the full limit

Drawing $30K for 10 days at 25% annualised costs roughly $205 in interest — a manageable cost for maintaining a smooth payroll cycle.

Watch for non-utilisation fees (charged if draw-down falls below a minimum), annual renewal fees, and missed payment penalties. Always ask for a full fee schedule before signing. A good broker will walk through every line — if one won't, that's a signal.

Always ask for the full fee schedule in writing

A business owner's broker identified a $500/year non-utilisation fee buried in the facility agreement and had it removed before settlement — saving $1,500 over three years.

A revolving line works like a credit card for your business: draw what you need, repay when funds arrive, and the full limit is available again. Interest accrues only while funds are drawn. Most facilities let you repay and redraw freely without reapplying — which is exactly what makes it useful for recurring payroll cycles.

Repay and redraw — no reapplication needed

A freight business draws $50K each fortnight for payroll, receives client payments within 7–10 days, repays in full, and starts the next cycle with the full limit restored.

Lines under $150K are frequently offered unsecured, relying on a personal guarantee rather than a specific asset. Above that threshold, lenders may take a charge over business assets. Requirements vary by lender and business profile — knowing this upfront lets you structure the facility to protect what matters to you.

Under ~$150K often unsecured

A civil contractor needed $300K — the lender took a charge over plant and equipment, leaving the owner's home and personal assets untouched and preserving mortgage capacity.

With a complete application, non-bank lenders can conditionally approve within 24–48 hours. Full settlement (funds accessible) is typically 2–3 business days. Bank facilities often take longer — 5–10 days — but may offer better rates for established relationships. Applying now, while there's no pressure, gives you time to compare options properly.

No pressure now = better decision

A business owner applied on a Monday with a full document pack and had an active $80K facility by Wednesday — before their next payroll run the following week.

A broker compares multiple lenders in one application, matches your profile to the right product, and negotiates terms on your behalf — without costing you more. Going direct means you only see one lender's offering, and you carry all the legwork. Brokers also know which lenders suit your industry, turnover, and structure.