Payroll and wages funding

Why wages are the hardest bill to delay

Most business bills have some give. A supplier might accept a week’s delay; a landlord might wait a few days. Wages don’t work that way. Staff have rent, mortgages and groceries of their own, and late pay quickly erodes trust. It can also put the business offside with its obligations under workplace law.

So when a big customer pays late, or a new contract needs a bigger crew before the first invoice is paid, payroll is where the pressure lands first.

How Payday Super changed the timing

Before 1 July 2026, many employers paid super quarterly, which gave them a cushion. Under Payday Super, super must generally reach employees’ funds within seven business days of each payday. That means wages and super now leave the account at roughly the same time, and businesses that used the quarterly gap as informal working capital lost it. The ATO and Fair Work pages in the sources below explain the rules in full.

Which facility fits your wages gap?

Cause of the gap	Facility that usually fits
Customers pay on 30–60 day terms	Invoice finance
Gap repeats every month	Business line of credit
Crew hired ahead of a new contract	Contract funding or short-term loan
One-off late payment from a big customer	Short-term loan
Wages gap plus overdue tax	Property-secured or ATO debt options

Fix the cause as well as the symptom

Funding solves the immediate problem, but a recurring wages gap is a signal. Worth checking:

• Payment terms: could you invoice weekly, take deposits or shorten terms?
• Pricing: does the price of your work cover labour at current wage rates, including super?
• Rostering: are labour costs matched to demand?
• Collections: is someone chasing overdue invoices every week?

Small changes here can shrink how much you need to borrow, or remove the need altogether.

What do lenders look at?

For wages funding, lenders want to see stable turnover, a clear explanation of the gap, and that PAYG withholding and super haven’t been allowed to fall behind. If they have, the ATO debt loans page covers the options. When you’re ready, send us the details.

An illustrative example

A traffic-management company wins a large roadworks contract invoiced monthly, but pays its crews weekly. Invoice finance releases most of each invoice’s value as soon as it’s issued, so payroll and super stay on time while the head contractor pays on its normal terms. (Illustrative only.)

What else is payroll and wages funding called?

Lenders, accountants and search engines don’t all use the same words. You’ll also see this entry described as Payroll loan, Wages loan and Super funding. In our A–Z index every one of those names points back to this page, so whichever term you searched, you’ve landed on the same thing. If a lender uses a name you don’t recognise, ask them to describe how the security, the term and the repayments work; that tells you far more than the label.

Where does it sit in the directory?

This entry lives on the cash flow and unsecured shelf. It’s most often used for cash flow and working capital, tax bills and debts, and the security usually involved is whatever suits the deal, from nothing at all to property. It is one of the quicker entries to put in place when the paperwork is ready. Its closest neighbours are:

• Cash flow loans — Sized on turnover and bank statements to smooth out the gap between bills and income.
• Short-term business loans — Borrow for weeks or months to cover a specific, time-limited need.
• Bad credit business loans — Past defaults or a declined bank application don’t automatically end the conversation.
• Business line of credit — A limit you draw on, repay and draw again — interest only on what you use.

To compare all of them at once, filter the Loan Finder by purpose and security.

Common mistakes to avoid

• Starting with the product instead of the purpose. Decide exactly what the money must achieve, then choose the structure that fits it.
• Not comparing secured and unsecured options. The same need can often be met either way; the right answer depends on amount, credit and timing.
• Under-estimating the total cost. Ask for the full amount repayable in dollars, including every fee, before you compare offers.
• Applying everywhere at once. Multiple applications can leave a trail of credit enquiries. One well-prepared enquiry is better.
• Leaving it until the last minute. Facilities are easier to arrange while trading is strong, not in the middle of a crunch.

What should I ask before signing up for payroll and wages funding?

A short list of questions saves a lot of regret. Put these to any lender or specialist before you commit:

1. Which structures did you consider for me? A good specialist explains why one option beats the others for your situation.
2. What’s the total cost in dollars? Compare like with like across secured and unsecured offers.
3. What security or guarantees are needed? Know exactly what’s on the line before you sign.
4. How are repayments timed? Match frequency to how money comes into your business.
5. What happens if things change? Ask about early repayment, top-ups and hardship options.

If an answer is vague, ask again or ask for it in writing. Good lenders are happy to explain their terms clearly.

Keep payday stress-free

If wages and super are landing before customer payments, funding built for that gap can take the pressure off. The enquiry takes about a minute. There’s no credit check when you enquire, and one specialist works on it rather than spreading your details far and wide.

Please tell us your payroll cycle, typical wages bill and when customers pay. Accurate figures mean the right facility the first time. Start your enquiry.