The EOFY cash crunch: fast funding for June and July

Why is the end of the financial year so hard on cash?

Because several bills and decisions land at once. Around 30 June, Australian businesses typically face:

• The June quarter BAS and PAYG instalment, due in the following weeks
• Super contributions, now paid alongside wages under payday super
• Year-end purchases made to bring forward deductions
• Stock counts, write-offs and supplier accounts squared up
• Annual insurance renewals, licences and subscriptions
• A quieter trading month in many industries as winter sets in

Add a big customer who delays payment into the new financial year, and even a healthy business can find itself short in July.

Should I buy equipment before 30 June?

Only if the business genuinely needs it. Tax concessions such as depreciation and the instant asset write-off reduce your taxable income, but spending a dollar to save a fraction of a dollar in tax is still spending money. Thresholds and eligibility change, so check the current rules with your accountant before you buy. If the purchase makes sense and timing matters, see equipment at auction or fast equipment finance.

How can a fast loan help at EOFY?

EOFY pressure	Route	Speed possible
June quarter BAS shortfall	Unsecured cash-flow loan	Same day for smaller amounts
Old tax debt to clear before the new year	Caveat or second mortgage	Same day for $20k–$250k
Year-end stock or equipment purchase	Unsecured or property-secured	Same day to 48 hours
A crunch that happens every year	Line of credit	Immediate once set up

How much should I borrow?

Map June, July and August. Note every outflow, including BAS, super, wages and planned purchases, and every inflow you’re confident about. The low point in that forecast is your gap. Borrow that plus a buffer, for as long as it takes cash to recover. The Cash Gap Calculator helps with a quick version.

Illustrative example: a plumbing supplies wholesaler in Brisbane typically sees sales dip in July as builders slow for winter. This year it also faces a $95,000 June quarter BAS and wants to clear slow stock with a clearance purchase from a supplier. A $120,000 line of credit, drawn in July and repaid by October as spring trade picks up, keeps the business comfortable through the dip.

When should I apply?

Earlier than you think. June is busy for accountants, banks and lenders, and the last few business days of the month are crowded. Lodge your enquiry in early or mid-June, have documents ready and avoid relying on 30 June itself. Our document checklist helps.

What should I do now for next EOFY?

• Start forecasting June and July in March
• Set aside GST, PAYG and super weekly in a separate account
• Agree a plan with your accountant for any year-end purchases
• Put a line of credit in place before you need it

Our tax-time cash crunch guide walks through a full annual tax calendar.

Feeling the June squeeze? Start a 60-second enquiry.

Which industries feel the EOFY squeeze most?

Almost every business feels June, but some feel it harder:

• Construction and trades, where winter slows outdoor work while the June quarter BAS still needs paying
• Retail, where end-of-financial-year sales move stock but at thinner margins
• Hospitality in southern states, heading into the quietest months of the year
• Professional services, whose clients may hold off on spending until the new financial year
• Wholesalers and suppliers, who carry customers’ year-end orders on credit

If your business is in one of these groups, start your June forecast in March.

Prepayments and year-end deals

Some suppliers offer discounts for prepaying in June, and some owners prepay expenses to bring forward deductions. Both use cash at exactly the moment it’s scarcest. Before agreeing, check with your accountant whether the tax benefit is real for your situation and whether you’ll have enough cash left for the July bills. If the deal is genuinely worth it, a short-term loan or line of credit can make it work without leaving the business exposed in July and August.

Don’t forget payday super

Payday super applies from 1 July 2026, so the first pay run of the new financial year now includes super for the first time under the new rules. Check your payroll software settings well before 30 June.

See if your EOFY gap can be smoothed

There’s no credit check when you first enquire, so finding out won’t affect your file. We don’t send your details to a mob of lenders. A real person reads your enquiry, looks at the bills and timing you’re facing and calls with the fastest sensible option.

Please give the real amount and what it’s for on the form so we can match you properly the first time. Check if you qualify.