When the Bills Stack Up Faster Than the Income

For many small businesses, BAS payments represent one of the biggest cash flow challenges, particularly the December BAS, which was due at the end of February. If you found yourself scrambling to cover that payment, now is the perfect time to prepare for the next one and ensure you’re in a stronger financial position when the next deadline rolls around.

Why the December BAS Can Be a Challenge

The December-January period often sees a slowdown in billings due to the holiday season, while company expenses—like staff leave and fixed overheads—remain unchanged or even increase. By the time the February BAS is due, businesses may still be waiting for invoices from December and January to be paid, creating a cash flow crunch at the worst possible time.

How to Get Ahead of Your Next BAS Payment
Consider these strategies to boost your cash flow in advance the next time around:

1. Plan for Future Equipment Purchases with Finance

If you’re considering buying a vehicle or significant piece of equipment, financing it from the start (instead of paying outright) can free up capital for other expenses. If you’ve recently made a major purchase in the last 3–6 months, refinancing it can allow you to recoup those funds for working capital.

2. Refinance Existing Loans to Reduce Monthly Outgoings

If you have finance contracts with 12 months or less remaining, or a loan with a residual/balloon payment due soon, refinancing could help spread out repayments over a longer term, reducing your monthly commitments and easing cash flow pressure.

3. Utilise Insurance Premium Funding

Rather than paying annual insurance premiums in one lump sum, consider spreading payments over 10–11 months through an Insurance Premium Funding facility. These are often available at lower rates than those provided by your insurance broker and can help smooth out expenses throughout the year.

4. Unlock Capital from Owned Assets

If you have fully paid-off machinery or vehicles, you can refinance them to raise additional working capital, giving you access to funds when you need them most.

5. Set Up a Flexible Working Capital Facility

A low-doc, unsecured working capital facility—either as a short-term loan or an overdraft-style facility—can provide a financial cushion. This allows you to redraw and pay down funds as needed, with far less hassle than increasing an existing overdraft with your bank.

Make Your Next BAS Payment Stress-Free

By implementing these cash flow strategies now, you’ll be in a far better position when your next BAS payment comes due. A quick chat with Finlease can help you explore which of these options best suits your business needs, ensuring that next time, you’re ahead of the game—not scrambling to catch up.

Want to know more? A quick chat with your Finlease broker can go through these options & how they may suit your particular circumstances

Let’s Talk About Your Options: 1800 358 658

Real solutions. Real support. From people who do this every day.