When Does a Business Need Cash Flow Support? What to Know Before the ATO Stops Taking Credit Cards
From 30 November 2026, the ATO will no longer accept credit card payments. For many business owners, putting a BAS or tax bill on a credit card has been a way to get through a tight quarter and clear the card once customers paid their invoices. That option is about to end.
It's a good time to look at how your business handles the gap between money going out and money coming in. Needing cash flow support is common, even for profitable businesses. Wages, suppliers and tax are due on fixed dates, while income often arrives later or unevenly.
This guide covers what cash flow support is, seven common reasons businesses look for it, what the ATO change means for you, and the main types of cash flow finance.
What Is Cash Flow Support for a Business?
Cash flow support is funding that helps a business cover short-term costs while it waits for income to come in. It's usually used for day-to-day expenses such as wages, suppliers, stock, tax and rent, rather than for buying property or other long-term assets.
Cash flow and profit are not the same thing. A business can be profitable on paper and still run short of cash if its customers take 60 days to pay while its own bills are due in 14. Cash flow finance is designed to cover that timing gap.
It comes in several forms, from an overdraft you draw on as needed to funding secured against your unpaid invoices. We cover the main types further down.
Seven Common Reasons Businesses Look for Cash Flow Support
Every business is different, but most requests for cash flow support come back to one of these situations.
1. Investing in growth and expanding capacity
Growth usually costs money before it makes money. Hiring staff, opening a second location, adding a vehicle or taking on more work all involve upfront costs, and the extra revenue can take months to follow. Cash flow support can let a business reinvest in its operating capacity without using up the cash it needs to run day to day. Have a clear plan for how the investment is expected to pay for itself, and talk it through with your accountant before you borrow.
2. Getting through slower seasons
Many businesses earn most of their income in a few months of the year. Tourism and hospitality, agriculture, retail outside the Christmas period, and trades that slow down over the holidays or the wet season are common examples. Wages, rent, insurance and supplier accounts still need to be paid in the quiet months. Cash flow support can help keep those payments on time until trade picks up, so the business doesn't fall behind with the staff and suppliers it relies on.
3. Waiting on late-paying clients
Late payments are one of the most common causes of cash flow pressure, particularly for businesses that invoice other businesses or government. When a large client pays 30 or 60 days late, the work is done and your costs have been paid, but the cash hasn't arrived. Cash flow support can keep operations running in the meantime, so one slow payer doesn't put the rest of the business under strain.
4. Meeting tax, BAS and super obligations on time
Tax obligations fall due on fixed dates, whether or not your customers have paid you. Three recent changes make this more important to plan for:
Credit card payments to the ATO end after 30 November 2026. If you've relied on a credit card to spread out a BAS or tax payment, you'll need another way to cover it.
Payday Super started on 1 July 2026. Employers now pay their employees' super at the same time as wages, rather than quarterly. That spreads the cost across the year, but it also means less cash sits in the business account between quarters.
ATO interest charges are no longer tax deductible. From 1 July 2025, the general interest charge (GIC) and shortfall interest charge (SIC) that the ATO adds to overdue or underpaid tax can't be claimed as a deduction. Carrying an ATO debt now costs more than it used to.
Sources: ATO, Payday Super; Pitcher Partners, ATO interest charges no longer deductible
Using finance to pay a tax bill isn't right for every business, and the ATO offers payment plans to eligible businesses. Speak with your accountant about the best way to manage tax payments for your situation.
5. Buying stock or starting a large new contract
Retailers, wholesalers and hospitality businesses often need to buy stock weeks or months before a busy period. Builders, manufacturers and service businesses face a similar gap when they win a large contract, because materials, labour and set-up costs come well before the client's first payment. Cash flow support can cover those upfront costs so the business can take on the work without running down its working capital (the cash available for day-to-day operations).
6. Equipment breakdowns and unexpected costs
When a vehicle, machine or key piece of equipment breaks down, the business often can't wait to replace it. The same applies to urgent repairs, a sudden supplier price rise or a large bill that wasn't in the budget. For equipment, asset finance (a loan secured against the equipment itself) can spread the cost of a replacement over its working life instead of paying the full amount upfront. For other unexpected costs, a line of credit or short-term business loan can help cover the gap.
7. Taking up supplier early-payment discounts
Some suppliers offer a discount for paying early or upfront, for example 2% off an invoice paid within 10 days. When the discount is worth more than the cost of the funding used to pay early, cash flow finance can lower your overall costs. Compare the discount with the total cost of the finance, including fees, before you decide.
What's Changing With ATO Credit Card Payments, and What Are Your Options?
The ATO has confirmed that after 30 November 2026, you will no longer be able to use a credit card to make payments to the ATO. The change follows the Reserve Bank's decision to remove card surcharges, and the ATO has said it isn't appropriate for credit card merchant fees to be passed on to the community.
Sources: ATO, Other payment options; Accountants Daily, ATO will stop accepting credit cards from December
Other payment methods remain available, including:
BPAY
Electronic funds transfer (direct deposit)
Direct debit from a bank account or debit card
Government EasyPay using a debit card
In person at Australia Post
If you currently pay an ATO payment plan by credit card, the ATO is contacting affected taxpayers about the changes they need to make.
If you've used a credit card to manage the timing of tax payments, it's worth putting a plan in place before your next BAS is due. That might mean setting money aside each month, arranging an ATO payment plan, or setting up a business finance facility. Your accountant can help you decide which approach suits your business, and a broker can explain the finance options if that's the route you choose.
Common Types of Cash Flow Finance
There are several types of cash flow finance, and each suits a different situation. Lenders set their own criteria, so availability, costs and terms vary.
Business overdraft. A facility linked to your business transaction account that lets you go below zero up to an agreed limit. You pay interest on the amount you use, and fees often apply to the limit. It suits ongoing, short-term timing gaps.
Business line of credit. A limit you can draw on and repay as needed. It works much like an overdraft but is usually kept separate from your everyday account.
Invoice finance. Funding secured against your unpaid invoices. A lender advances a percentage of the invoice value, then pays you the balance, less its fees, when your customer pays. It suits businesses waiting on large invoices from other businesses.
Trade finance. Funding to pay suppliers, often overseas, for stock or materials, with repayment due once the goods are sold. It suits importers, wholesalers and retailers.
Asset and equipment finance. A loan to buy vehicles, machinery or equipment, secured against the asset itself. It spreads the cost over the asset's working life and keeps cash free for other expenses.
Short-term business loans. A lump sum repaid over a set period, often months rather than years. Some are unsecured (no property security), which generally means a higher interest rate than secured lending.
Some facilities can be secured against property. That may give access to lower rates, but it puts the property at risk if repayments aren't met. A broker can explain the trade-offs between secured and unsecured options for your situation.
Signs Your Business May Benefit From Cash Flow Support
Cash flow problems are easier to manage when you spot them early. Some signs to watch for:
You're regularly paying suppliers or bills late.
You're using personal savings or personal credit cards to cover business costs.
You've turned down work because you couldn't fund the upfront costs.
Tax, BAS or super payments are falling behind.
A small number of clients make up a large share of the money you're owed.
Your cash balance drops sharply at the same time each year.
If any of these sound familiar, review your cash flow with your accountant and look at your options before the pressure builds. Finance can help with timing gaps, but it won't fix a business that isn't profitable, and borrowing to cover ongoing losses can make things worse.
How Antigona Finance Can Help
Cash flow support works best when it's matched to the reason you need it. An overdraft that suits seasonal gaps may not suit a business waiting on large invoices, and equipment is usually better funded with asset finance than with a short-term loan. At Antigona Finance, we work with business owners on the Gold Coast and across Australia, and we can:
Talk through your cash flow cycle and what's causing the gap.
Compare business finance options across the lenders on our panel.
Explain the costs, security requirements and trade-offs of each option.
Work alongside your accountant so the finance fits your wider tax and business plans.
Book a free, no-obligation consultation with Antigona Finance to talk through your options.
Frequently Asked Questions
Can I still pay the ATO with a credit card?
Only until 30 November 2026. After that date, the ATO will no longer accept credit card payments. Debit cards are still accepted through direct debit and Government EasyPay, along with BPAY, electronic funds transfer and payments at Australia Post.
What can I use instead of a credit card to pay my tax bill?
You can pay by BPAY, electronic funds transfer, direct debit, debit card through Government EasyPay, or in person at Australia Post. If you can't pay the full amount on time, speak with your accountant or the ATO about a payment plan. Some businesses also use a finance facility, such as an overdraft or line of credit, to manage the timing of tax payments.
Is an ATO payment plan an alternative to business finance?
It can be. The ATO offers payment plans that let eligible businesses pay a debt in instalments, but the general interest charge (GIC) continues to apply to the unpaid balance, and from 1 July 2025 it is no longer tax deductible. Business finance comes with its own interest and fees. The right choice depends on your situation, so speak with your accountant and broker before you decide.
What is the difference between cash flow and profit?
Profit is what's left after expenses over a period. Cash flow is the timing of money moving in and out of your account. A business can be profitable and still run short of cash if it pays its costs before its customers pay it.
What is invoice finance and how does it work?
Invoice finance lets you borrow against invoices your customers haven't paid yet. A lender advances a percentage of the invoice value, and the remaining balance, less the lender's fees, is paid to you once your customer pays. It can suit businesses that invoice other businesses on 30 to 90 day terms.
Do I need property as security to get cash flow finance?
Not always. Some options, such as invoice finance and asset finance, are secured against the invoices or equipment being financed. Unsecured business loans don't need property security, but they usually come with higher rates, and lenders may ask the business owners for a personal guarantee.
How quickly can a business get cash flow funding?
It depends on the type of finance, the lender and how complete your application is. Some unsecured and short-term options can be assessed fairly quickly, while property-secured facilities usually take longer because a valuation and more documents are needed. Having recent financial statements, BAS and bank statements ready can help.
This information is general in nature only and does not take into account your personal objectives, financial situation, or needs. It should not be relied upon as personal financial or credit advice, please seek independent professional advice before making a decision based on this information. If you'd like more personalised information about your borrowing potential, reach out to us directly for a free consultation.
Antigona Finance Pty Ltd Corporate Credit Representative 576679 | Australian Credit Licence 384704
