Business cash flow
What’s cash flow, and why’s it important?
Cash flow means the money coming in and going out of a business and is vital to both big and small business. By understanding and managing a healthy cash flow, companies may be able to:
- Maintain financial stability
- Invest in growth or expansion
- Avoid money problems.
How healthy is your business cash flow?
Get tailored guidance, tools, and strategies to help your business cash flow. Book a free checkup and a business banking specialist will get back to you in 1-2 business days. Or give us a call 8:30am-6pm (Sydney time), Mon-Fri on 1300 658 883.
Quick tips for managing cash flow
Keep it separate
Separate personal and business accounts to simplify accounting.
Manage your stock
Avoid too much stock or being caught short by understocking.
Improve billing
Find faster payment solutions for a healthier bank balance.
Get financial insights, tips and tools
Our Backing Business magazine is designed to help support small businesses with pro tips, real stories, and helpful insights.
Business finance solutions to help smooth out your cash flow
Business Overdraft
A line of business credit you can access when you need it.
- Pay staff and suppliers
- Purchase new equipment
- Buy new inventory or stock
- Cover unexpected expenses
Rate: Variable rate + monthly line fee of 1.2% p.a. of total limit.
Borrow: the amount you need.
Insurance Premium Finance
Spread annual insurance premiums across monthly instalments.
- Smooth out cash flow
- Create business certainty
- Finance multiple policies at once
- Potential for tax deductions
Rate: personalised to your business
Borrow: from $5K to cover annual insurance from single or multiple policies.
Invoice Finance
Bridging the gap between issuing an invoice and getting paid.
- Turn unpaid invoices into cash
- Get quick access to funds
- Support potential growth opportunities
- Retain customer relationships
Rate: personalised to your business
Borrow: up to 85% of the value of your outstanding invoices. Ongoing funding limits starting from $500k.
Variable rate: rates vary depending on a number of factors. E.g. the type of security provided.
Monthly line fee: is based on the total limit. The monthly charge is calculated using the:
- Line fee annual percentage rate
- Total limit
- Number of days to arrive at the monthly amount.
E.g. If the: 1) line fee is 1.20% p.a., 2) overdraft limit is $10,000 and 3) month has 31 days. The line fee calculation is: (1.20% of $10,000)/365x31 days = $10.20 per month.
Amount you can borrow: depends on your eligibility, credit criteria and the type of security.
Multiple insurance policies: you choose the insurer. Some exclusions apply. Most Australian or United Kingdom licensed insurers / underwriters are acceptable.
Your guide to navigating business cash flow
Created in partnership with MYOB, our guide has insights, tips and tools to help you manage your cash flow. Learn how to use a cash flow budget, calculate your future cash position or discover where cash may be hiding in your business.
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Frequently asked questions
Looking to separate your business transactions from your personal? A Westpac Business One account, with no-monthly fees, could help you with that.
If you decide to use one or more business finance solutions, a business transaction account may be helpful.
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Things you should know
Credit criteria, fees, charges, terms and conditions apply. Talk to your banker for product details.
This information is general in nature and has been prepared without taking your personal objectives, circumstances and needs into account. You should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice. Consider the terms and conditions for the product before making any decision.
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