Quick answer
Borrow the must-pay total, plus anything else due before the next reliable money comes in, plus a small buffer — then subtract cash you can genuinely use. Asking once for the right number is faster than a second application mid-crisis, and cheaper than borrowing for bills that could have waited. A line of credit helps when you're unsure, because you only draw what you need.
Key points
- Start with the must-pays, not the whole creditor list.
- Include everything due before your next reliable inflow — not just today's bill.
- Add a modest buffer for one surprise, not three.
- Asking once for the right number is faster than asking twice.
- Method
- Five-line sizing
- Buffer
- Enough for one surprise
- Unsure?
- Consider a line of credit
- Range
- $5k unsecured to $5m secured
Why does the number matter so much?
Because it’s the thing most likely to change mid-application, and every change costs time. An owner who enquires for “about $50k”, then remembers the BAS, then realises super goes out with the same pay run, ends up with a $95k need and an assessment that has to be redone.
In urgent finance, the right number up front is one of the biggest speed levers you control.
The five-line method
Grab a pen. Five lines:
| Line | What to write | Example (illustrative) |
|---|---|---|
| 1. Must-pays | Bills with hard consequences before your next reliable inflow | Payroll + super $48,000; supplier to reopen account $31,000 |
| 2. Also due | Other bills in the same window you’d rather not juggle | BAS in three weeks $22,000 |
| 3. Buffer | One surprise — roughly one week’s typical outgoings or a known risk | $10,000 |
| 4. Less usable cash | Money in the account you can actually spend without creating a new gap | −$15,000 |
| 5. Amount to ask for | Lines 1 + 2 + 3 − 4 | $96,000 |
“Next reliable inflow” is the key phrase. That’s the date of money you’re confident of — a customer who always pays, a contract milestone, seasonal trade you’ve seen in past statements. Not the hopeful invoice that’s already 60 days late.
How do you choose what goes on line 2?
Line 2 is a judgement call. Include a bill if:
- it falls due before your next reliable inflow;
- negotiating it would cost goodwill you need; or
- it carries interest or penalties that make it expensive to leave (tax debts accrue general interest charge daily, for example).
Leave it off if the creditor is flexible, the bill can be comfortably covered from trading, or it’s due well after money arrives. If you’d like a structured way to decide, our emergency triage page ranks bills by consequence.
Is it better to borrow a lump sum or set up a limit?
If your five lines give you a clear number and a clear repayment date, a loan sized to it is simplest. If the number depends on things you can’t pin down — whether a customer pays on time, how big next month’s supplier run will be — a line of credit removes the guesswork. You set a limit near the upper end, and only draw what you need.
On our lending facts, unsecured and cash-flow options typically run from $5,000 to $500,000 for trading businesses, sized on turnover and bank statements. Property-secured loans run from $20,000 to $5,000,000. Where your number lands relative to your turnover affects which path is realistic — see secured or unsecured. If your five lines are done, you’re ready to enquire.
What are the common sizing mistakes?
- Borrowing for the first bill only. The deepest point in the gap is often a week or two after the first shortfall. A week-by-week map shows it; see urgent working capital.
- Forgetting the linked costs. Super follows wages. PAYG withheld sits on the BAS. Storage builds on imported goods. Legal costs can attach to overdue debts.
- Counting unreliable money. An invoice that’s already late is not a repayment source until it’s paid.
- Adding a big “just in case”. A buffer for one surprise is sensible. Three surprises is a different loan.
- Ignoring the repayment. Check that the new repayment fits your normal month, not just the month the money arrives.
An illustrative example
Illustrative only. A physiotherapy practice thinks it needs $30,000 to cover a late insurer payment before payroll. Working through the five lines, the owner adds super on that pay run ($3,400), realises the lease outgoings reconciliation of $12,000 is due the same week, and that the next reliable insurer batch is three weeks away, not one. With a $6,000 buffer and $8,000 of usable cash, the right number is $43,400. Asking for $30,000 would have meant a second, harder conversation 10 days later.
How do you check the repayment fits?
Once you have the number, test it against a normal month — not the month the money arrives. Take your average monthly bank balance movement over the last six months and ask: after the new repayment, is there still room for a slow month? If the answer is no, consider a longer term, a smaller amount with part of the bill negotiated, or property security that allows a different structure. A loan that solves this month’s problem but creates next quarter’s isn’t the right size.
Should the loan cover fees and costs too?
Where there are establishment or legal costs, ask whether they’re deducted from the loan or paid separately, and size the loan so the amount you actually receive covers the bills. It’s an easy detail to miss when you’re working fast, and a shortfall of a few thousand dollars on the day can be as disruptive as a much larger one.
Got your number? See if you qualify
The right amount, asked for once, is one of the most useful things you can bring to an urgent enquiry. Tell us the number, what it covers and when it’s due. Asking doesn’t involve a credit check, your enquiry isn’t circulated to a crowd of lenders, and a real person checks the number with you and calls. Please be accurate on the form so the facility fits the whole gap, not just the first bill. The triage checker can sense-check the amount against your turnover first if you’d like.
Frequently asked questions
How much should I borrow for a cash flow gap?
Enough to reach the point where reliable money arrives — the deepest point on a week-by-week cash map — plus a modest buffer. Borrowing only for the first bill often means a second shortfall a fortnight later.
Is it bad to borrow a bit more than I need?
A small buffer is sensible. Borrowing a lot more than you need costs money and adds repayments without solving anything. If you're genuinely unsure, a line of credit lets you draw only what you use.
What if I ask for too little?
You may need a second facility or an increase, which takes time and may be harder to arrange once the first is in place. It's worth spending an hour on the number before enquiring.
Does the amount affect how fast I can get funding?
Yes. Property-secured loans of $20k to $250k are possible same day; up to $5m is possible within 24–48 hours. Unsecured amounts are sized on turnover, so a modest amount relative to turnover moves more easily than a large one.