Wages leave on a fixed day. Customer payments do not.
- Funding available within 2 business days on non-bank facilities, once the file is complete
- Facilities from $20K to $2M, sized to your pay run and the money owed to you
- Employers in trades, labour hire, cleaning, security, transport, hospitality, health and services
- Covers net wages, PAYG withholding (the tax taken from wages) and the super that now goes out with each pay run
- Documents to suit your records: full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead), and no-doc where property security is offered
Pay day comes before the customers pay. Your staff have done the work and expect to be paid on the usual day, while the customers you invoiced for that work are still inside their payment terms. Since 1 July 2026 the super has to move with every pay run as well, which leaves less room between the two. Payroll gap finance is short-term business funding that covers wages and super until the money you are owed arrives. It is usually drawn against your unpaid invoices, or secured against other business assets or property. Joseph Farhat and his team look at your pay cycle, your customers and how the gap is formed, then tell you plainly what can be arranged and how soon.
Who we can help access finance
- Labour hire and staffing businesses paying workers weekly while host clients pay on 30 or 45 day terms.
- Cleaning, security and facilities contractors who carry a full roster before a large site contract pays its first invoice.
- Builders and trades businesses with a fortnightly payroll and a progress claim that is approved but not yet paid.
- Growing businesses that have hired ahead of a new contract and need the first few pay runs covered.
- Seasonal employers, such as hospitality and agriculture, whose staff numbers peak before the revenue does.
- Employers adjusting to super leaving with every pay run, after years of paying it once a quarter.
How Payroll Gap Finance Works
Each pay run carries three costs. There are the net wages paid to staff, the PAYG withholding the business holds for the ATO, and super. Under Payday Super, which started on 1 July 2026, super must be paid for each payday and must reach each employee's fund within 7 business days after payday, with some exceptions such as new employees. For a business whose customers pay in 30 to 60 days, every one of those costs falls due well before the matching revenue arrives.
The most common way to cover that gap is invoice finance. A financier advances a share of the invoices you have already issued, and the facility is repaid as those customers pay. Where invoices are not the right fit, a revolving line of credit or a short-term business loan can be secured against business assets or property instead. The aim is to size and time the facility to the pay cycle: drawn a day or two before each pay run, and reduced when customer receipts land. Joseph Farhat and his team review your payroll calendar, your debtor ageing (how long each customer invoice has been unpaid) and your security, then put the file to whichever of our 90+ bank, non-bank, and specialist lenders suits your ledger. They stay with it until the first drawdown.
Wages and super have fixed due dates. A super contribution that is late or short can lead to an ATO assessment of the super guarantee charge (SGC), which is due on the day it is assessed. Company directors can be personally liable for unpaid SGC and PAYG withholding through a director penalty notice (DPN). Paying on time keeps those costs from arising. Settled With Joe arranges finance. We do not act as your accountant or as an insolvency practitioner. If the shortfall comes from timing alone, funding can help. If the business cannot pay its debts as they fall due, speak with your accountant or a registered insolvency practitioner before taking on new borrowing.
What Lenders Assess for Payroll Gap Finance
Your debtor ledger
Payroll size and rhythm
The cause of the gap
Payroll and tax compliance
Recent bank statements
Customer contracts
Other security
The Payroll Gap Finance Process: What to Expect
- Tell Joseph Farhat and his team your next pay date, the size of each pay run and when your customers usually pay. If the gap looks like more than timing, we will say so and point you to your accountant.
- Send an aged debtors report, recent business bank statements, a payroll summary and a sample of customer invoices or contracts.
- We identify the lenders on the panel that fund payroll against your type of ledger or security, and set out the limit, cost and drawdown process for each.
- You receive a written offer showing the facility limit, fees, security and repayment terms. Joseph Farhat and his team walk you through the cost of each drawdown before you sign.
- The facility is set up so funds can be drawn before each pay run, and repaid as your customers pay. We stay in contact as your payroll or customer base changes.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~8% p.a. | Debtor ledger or property security | $100K to $2M | 12 months, revolving | 3 to 5 weeks |
| Non-Bank Lenders | From ~12% p.a. | Debtor ledger, business assets or unsecured | $20K to $2M | 3 to 24 months, often revolving | Within 2 business days |
| Private Finance | From ~1.25% per month | Mortgage over property | $150K to $2M | 1 to 12 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
