Working capital for the busy season: funding stock, wages and super before Christmas
For many Australian businesses, the busiest months of the year are also the months when the bank balance looks thinnest. Stock has to be bought before it can be sold. Extra shifts are paid every payday. Since 1 July 2026, super goes out with every pay run too. And the customers paying for all of it may not settle until December or January.
Working capital for the busy season is short-term funding that covers what a business has to pay before its peak-season revenue comes in, mainly stock, wages and super. The most useful time to arrange it is generally before those costs land. For a Christmas peak, that usually means October, so you can plan from a forecast rather than react to a stretched account in December. Whether finance is the right answer, and which type may be suitable, depends on what is causing the gap.
Why can a business be busy and still short of cash before Christmas?
Because the costs of a busy season arrive first and the revenue arrives later.
Most of the big outflows happen before the first peak-season sale:
- Stock and supplier deposits, often ordered weeks ahead so shelves, cool rooms or warehouses are ready.
- Extra wages for casual and seasonal staff, paid every pay run from the day they start.
- Super on those wages, which now has to be paid for each payday.
- Other set-up costs, such as marketing, packaging, freight or extra equipment hire.
The money coming in depends on how your customers pay. A café or retailer sees takings daily. A wholesaler, manufacturer or trade business that invoices on payment terms may not see November's sales in the bank until December or January. Add a Christmas–New Year shutdown, and the account can reach its lowest point in the middle of the busiest stretch of the year.
What a pre-Christmas cash cycle can look like
Here is a simplified picture of how cash can move through a seasonal business from October to January. It is an illustration only. Every business has its own pattern, and yours may peak earlier, later or more than once.
What did Payday Super change for seasonal cash flow?
From 1 July 2026, employers have to pay super for each payday, and the contribution needs to reach the employee's super fund within 7 business days. Some exceptions apply. For example, a new employee's first contribution has 20 business days. Before 1 July, employers had to pay super at least once a quarter.
Source: ATO. See the ATO's Payday Super announcement for the full rules.
Payday Super changes when super is paid, not how much. For seasonal cash flow, that timing matters.
If your business used to hold super until the quarterly due date, super on November and December wages used to leave the account after the peak. It now leaves in the same weeks as those wages. For some businesses, that may make the pre-Christmas gap larger than in previous years.
If you already paid super every pay run, little may change. Either way, this is the first Christmas peak under the new rules, so it is worth adding super to your cash-flow forecast payday by payday rather than as a quarterly lump sum. Your accountant or payroll provider can confirm how the rules apply to your business.
Which type of funding suits a seasonal cash gap?
Start with what is causing the gap, not with a product name. The same business can need different solutions for different problems.
Costs land before sales, at the same time every year
A revolving facility, such as an overdraft or line of credit, may be suitable. You draw on it as stock and wages are paid and repay it as takings come in. See our working capital and overdraft options.
You have made the sales, but customers pay on terms
If the gap comes from unpaid invoices, invoice finance may be suitable, as it advances funds against invoices you have already issued. Our guide to how invoice finance works explains more.
You need equipment or a vehicle before the peak
Paying for a long-life asset out of your working capital can use up the buffer you need for stock and wages. Asset finance can help preserve working capital while you acquire the equipment you need.
The gap doesn't close after the season
If the account stays short well after January, the issue may not be seasonal. Read when borrowing may not be the answer before taking on more debt.
Which options may be available will depend on lender criteria and your circumstances, including your trading history, cash flow and any security.
Why arrange working capital before the peak, not during it?
A finance conversation in October is about January's low point. A finance conversation in mid-December is about this week's wages. The first one gives you more choices.
- You apply with a plan, not under pressure. A forecast that shows when the gap opens and when it closes tells a clearer story than an account that is already stretched.
- Assessment takes time. Lender requirements vary, and lenders may ask follow-up questions. The Christmas–New Year period is also short on business days.
- You can compare more than one option. Probiz Finance works with a range of lenders, including banks and non-bank lenders, so the focus can be on which structure fits your cash flow.
- You can check what you already have. Existing facilities are often reviewed periodically. Confirm your current limit and its next review date before you rely on it for the busy season.
What should you prepare before applying for a working capital facility?
Having the following ready can make the conversation more useful and help a lender understand your seasonal pattern:
- Recent BAS statements, which show your trading pattern across the year.
- Aged debtors and aged creditors reports, showing who owes you, who you owe and how old each amount is.
- A cash-flow forecast through to February, with stock, wages and super shown when they are actually paid.
- Details of your current facilities, including limits, balances and review dates.
- A short explanation of your season: when costs start, when sales peak and when the cash comes back.
Lender requirements vary, so a lender may ask for more or different information depending on the facility and your circumstances.
When borrowing may not be the answer
Finance can help bridge a gap that closes. It does not fix a gap that stays open.
If the account is short most of the year, or peak-season margins don't cover peak-season costs, extra debt may only push the problem into next year. In that case, other changes may help first: ordering stock in stages, negotiating supplier terms, asking for deposits on larger orders, or following up overdue invoices before the season starts. Your accountant can help you test which of these makes sense.
Whether borrowing is right for your business at all is a reasonable question to raise in any finance conversation.
Frequently asked questions
Why can a business be busy and still short of cash before Christmas?
Because stock, wages and super are paid before peak-season revenue is collected. Businesses that invoice on payment terms can wait until December or January for November's sales, so the account may reach its lowest point during the busiest weeks.
When should a seasonal business arrange working capital?
Generally before the costs of the peak start landing. For a Christmas peak, that usually means starting the conversation in October, when you can plan from a forecast rather than respond to a stretched account.
Does Payday Super affect business cash flow?
It can. From 1 July 2026, super must be paid for each payday and reach the fund within 7 business days, with some exceptions (Source: ATO). Businesses that used to pay super quarterly may now see super go out in the same weeks as their peak-season wages. It changes the timing of super, not the amount.
Overdraft, line of credit or invoice finance: which suits a seasonal cash gap?
It depends on the cause. Where costs land before sales each season, a revolving facility such as an overdraft or line of credit may be suitable. Where the gap comes from customers paying on terms, invoice finance may be suitable. What is available depends on lender criteria and your circumstances.
What should I prepare before applying for a working capital facility?
Recent BAS statements, aged debtors and creditors reports, a cash-flow forecast through to February, and details of your current facilities are a good starting point. Lender requirements vary, so you may be asked for more.
Should I use my overdraft to buy equipment before the busy season?
It is worth thinking twice. Your overdraft is often the buffer for stock and wages at your peak, and using it for a long-life asset can leave less room when you need it most. Asset finance can help preserve working capital while you acquire the equipment.
Can you see a gap forming before your peak?
We can help you understand which working capital options may be suitable for your business, and what lenders may ask for, before the busy season starts.
Talk to us about your business finance requirements Or call 0415 929 728This information is general in nature only and does not take into account your objectives, financial situation or needs. Consider your circumstances and seek appropriate professional advice before making a financial decision.
Probiz Finance ABN 52 661 057 647 | Credit Representative Number 542838 is authorised under Australian Credit Licence No. 384704.