When to Put Cashflow Buffers in Place | Finlease

The short answer? Before you need them.

Here’s the pattern we see:

Reactive:
Cash gets tight → scramble for finance → limited options → pay more, get less favourable terms

Proactive:

Plan ahead → put buffers in place → opportunities arise → deploy capital strategically, sleep better

The best time to set up a working capital facility?
When you don’t desperately need it.

The best time to refinance equipment?
Before you’re cash-strapped.

The best time to restructure debt?
When you’re planning ahead, not when you’re behind on payments.

Approval is easier, terms are better, and you’re making decisions from strength, not desperation.

Unsecured Working Capital

What it is: A flexible line of credit that sits in your business account, ready when you need it. Think of it like an overdraft, but usually with better terms and more flexibility.

How it works: You get approved for a facility. You only pay interest on what you draw down. When you don’t need it, it costs nothing. When you do need it, it’s there immediately.

When it helps:
+ Bridging the gap between doing work and getting paid
+ Covering wages during slow months
+ Taking advantage of opportunities (bulk discounts, quick equipment deals)
+ Managing quarterly BAS payments without stress
+ General business buffer for peace of mind

Equipment Refinancing For Cash Release

What it is: Taking equipment or vehicles you own (either fully/mostly paid off) and refinancing them to release cash into the business.

How it works: If you own a $100k excavator outright, you can refinance it over 3-5 years and release $80-90k cash into the business account. You now have monthly repayments, but you’ve got working capital to deploy.

When it helps:

+ Need working capital but don’t want unsecured debt

+ Want to fund growth without selling assets

+ Equipment is sitting idle equity-wise

+ Business needs cash injection for expansion

Debt Restructuring To Reduce Monthly Payments

What it is: Reviewing all your existing loans (equipment, vehicles, business loans) and restructuring them to reduce total monthly repayments – freeing up cash flow each month.

How it works: If you have multiple loans nearing the end of their terms, you can often consolidate or restructure them. This might mean longer terms, but significantly lower monthly payments.

Do you have these buffers in place?

Feel free to reach out and we can review your current situation. We’ll look at your current setup (bank loans, existing finance, everything) and see where buffers make sense.

Give us a call on 1800 358 658 or contact us.