By John Pierre Saliba · April 2026 · OverdraftMe
If your revenue swings between feast and famine - construction shutdowns in January, hospitality quiet in winter, retail dead between Easter and Christmas - you know the pain of trying to cover fixed costs when revenue drops. Wages, rent, insurance and supplier payments don't stop just because customers do.
A business overdraft gives you a permanent cash buffer. You draw during the quiet months and repay during the busy ones. No fixed repayments, no reapplication - just a revolving facility that flexes with your business cycle.
Look at your last 12 months of bank statements. Identify your worst month - the month where expenses exceeded revenue by the most. That gap is your minimum overdraft requirement. Add 20% buffer for unexpected costs. That's your target facility size.
For most seasonal businesses, a facility of 1–2 months' operating expenses provides adequate cover. For a business spending $40,000/month on wages, rent and supplies, that means a $40,000–$80,000 overdraft.
Without a cash buffer, seasonal businesses often resort to putting expenses on personal credit cards (25%+ interest), delaying supplier payments (damaging relationships), or skipping super payments (now more dangerous than ever with Payday SuperSuper CalculatorHow Much Can I Borrow? penalties from July 2026).
A business overdraft at 15–20% p.a. on drawn funds - where you only pay for what you use - is almost always cheaper than the alternative.
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