Funding the peak, managing the pause: preparing for the September-to-February cash-flow squeeze

Late payment remains a challenge for Australian businesses.

CreditorWatch reported in April 2026 that late payments had reached their highest level in six years.

Payment Times Reporting data for January to June 2025 showed it took 64 days for 95 per cent of small business invoices to be paid, compared with average common payment terms of 29 days.

Seasonal pressures can amplify that delay.

ASIC's FY2025–26 statistics showed 3,856 company insolvencies during the December quarter, the highest quarterly figure for that financial year.

For retailers, wholesalers and importers, the cash-flow cycle often starts well before the customer arrives.

The Australian Retailers Association and Roy Morgan forecast $72.4 billion in retail spending during the six weeks from 13 November to Christmas Eve 2025. But much of the inventory supporting those sales needed to be ordered and paid for months earlier.

Importers face an additional timing challenge. Chinese New Year falls on 6 February 2027, meaning businesses sourcing from China may need to confirm production and freight arrangements earlier to avoid disruption. Read our guide on importing from China.

As Brett explains: “If the constraint is paying a supplier before inventory arrives and generates revenue, Trade Finance can help align the supplier payment with the eventual sale of those goods.”

Labour-intensive businesses face a different mismatch.

From 1 July 2026, superannuation contributions generally need to reach an employee's fund within seven business days of payday.

That means businesses may need to fund wages and superannuation every pay cycle while waiting 30, 60 or even 90 days for customers to settle invoices.

If the work has been completed and the invoice has already been raised, the issue is not future sales. It is cash locked in receivables.

Debtor Finance can bring forward some of that cash rather than requiring the business to wait for the customer payment.

January and February can bring several cash demands together.

Businesses may need to restart payroll, replenish stock, pay suppliers and manage tax obligations just as customer collections slow after Christmas.

The October to December activity statement is due on 28 February for many businesses.

At the same time, carrying tax debt has become more expensive. General interest charge incurred on or after 1 July 2025 is no longer tax deductible.

For Brett, that makes forward planning particularly important: “Arranging funding for a gap you can already see is very different from looking for finance once supplier, payroll or ATO pressure has already arrived.”

The impact is not evenly spread.

CreditorWatch's April 2026 Business Risk Index recorded Food and Beverage Services as having the highest rolling annual insolvency rate at 2.24 per cent. It also had the highest proportion of invoices more than 60 days overdue, at 11.37 per cent.

Transport, manufacturing, retail and construction also recorded elevated late-payment or insolvency indicators.

These sectors often share a common feature: cash goes out well before it comes back.

Wholesalers and retailers fund inventory. Transport businesses fund fuel and wages. Construction businesses carry labour and materials. Manufacturers buy inputs before production and customer payment.

The Christmas and New Year period can make those existing working-capital gaps more pronounced.

The objective is not for the broker to determine the client's customs position, but to recognise that these costs can affect the amount and timing of working capital required.

Many businesses will naturally approach their bank when they need additional funding.

But a seasonal working capital requirement does not always fit neatly into traditional lending structures.

RBA research has found that unsecured credit remains a small proportion of SME lending, while property and other assets continue to play an important role in securing business finance.

SMEs have also historically cited lender requirements, processing times and collateral as barriers to accessing suitable finance.

As such, non-bank lenders have steadily increased their share of SME lending, supported by investment in digitisation and automation.

This includes working capital facilities that are structured differently than tradition loans. That difference is important when the funding requirement moves with trading activity.

“Rather than relying primarily on the value of property, Trade Finance can be structured around supplier purchases, while Debtor Finance can be structured around the value of eligible customer invoices,” Brett says.

The important question is not simply whether your business needs more funding.

It is where the cash-flow gap is occurring and how long it needs to be covered.

A business buying stock in September has a different funding need from one waiting on customer invoices in January. Some businesses experience both.

If the pressure comes from paying suppliers before inventory has generated revenue, Trade Finance can help fund the purchase.

Trade finance allows businesses to pay local and international suppliers upfront while retaining cash for other operating expenses.

Repayments can extend for up to 120 days, including up to 60 days interest free, helping better align supplier payments with the point at which stock is converted into sales.

For retailers, wholesalers, importers and manufacturers preparing for seasonal demand, Trade finance can provide additional breathing room between ordering inventory and receiving the revenue it generates.

Brett says timing is often the critical issue: “The earlier a business can see its seasonal stock requirement, the more opportunity it has to structure funding around when that inventory will actually generate revenue.”

If the pressure comes after the sale, Invoice Finance (also known as Debtor Finance) can help bring forward cash from eligible unpaid invoices.

Businesses can access up to 85 per cent of eligible invoices, generally within 24 hours, rather than waiting 30, 60 or 90 days for customers to pay.

Available funding can also grow alongside the receivables ledger.

“Strong sales don’t automatically mean strong cash flow,” Brett says. “If the invoices from your peak period aren’t being collected until January or February, that cash can still be unavailable when the business needs it.”

Many businesses do not have just one working-capital pressure point.

A wholesaler or manufacturer may need OctetTrade Finance to purchase stock before Christmas, then an OctetDebtor facility once those goods have been sold and customer invoices are outstanding.

Using both facilities can address different stages of the same trading cycle.

Octet can structure Trade and Debtor Finance together so funding is aligned with where cash is actually tied up, rather than relying on one facility to cover every requirement.

For eligible OctetTrade or OctetDebtor clients with an additional lump-sum funding requirement, an Octet Term Loan can also provide up to $5 million in additional capital, with repayment terms from six months to three years.