Running out of cash between jobs is one of the most common - and most frustrating - problems facing Australian tradies. You have work lined up, tools in the van and a growing business. But the money is not in the account when you need it.
Here is why it happens and exactly what to do about it.
You finish a job on Friday. You send the invoice. The client pays in 14–30 days. But your subbies want payment this week. Your materials supplier wants payment next week. And your wages still need to go out on Thursday.
This gap between completing work and receiving payment is the number one cash flow killer for tradies.
Large jobs require significant materials investment before a dollar of revenue arrives. A concreter buying formwork for a commercial job, an electrician buying cable and switchboards for a fitout - the cash goes out weeks before the invoice is paid.
Wet season in Queensland. Winter in Victoria. Public holidays. Seasonal dips hit tradie cash flow hard - especially when wages and fixed costs keep running regardless.
When one large commercial contract represents most of your revenue, a delay in that client's payment can cripple your entire business for weeks.
Every day you wait to invoice is a day longer until you get paid. Invoice the same day the job is complete or at each project milestone. Use accounting software like Xero or MYOB that lets you invoice from your phone on site.
Ask for 20–30% upfront on any job over $5,000. This is standard practice and most clients expect it. It covers your materials cost and reduces your exposure if a client delays payment.
For multi-week or multi-month projects, invoice at each milestone - slab down, frame up, lock-up, completion. Do not wait until the end to invoice for everything.
A business overdraft is the most effective tool for managing tradie cash flow gaps. Draw on it when materials need to be purchased or wages need to go out. Repay it when the client pays the invoice. You only pay interest on what you use.
The key: arrange your overdraft during a good period - not during a cash crisis. Lenders approve based on your revenue history. Apply when your last 6 months look strong.
Ask your materials suppliers for 30-day payment terms. If you currently pay on delivery, even a 14-day extension gives you breathing room to align your supplier payments with client receipts.
Send a reminder 3 days before an invoice is due. Follow up the day it is due. Call on day 3 overdue. Do not wait 30 days to chase a 30-day invoice - by then it is already 60 days old.
If you are drawing personal expenses from your business account, your cash flow position is impossible to track. Open a dedicated business account and pay yourself a regular salary or drawings.
Most plumbers, carpenters and landscapers find that an overdraft equal to 1–2 months of their average revenue covers most cash flow gaps. Use our borrowing calculator to estimate your limit based on your monthly revenue.
See also: Best business overdraft for tradies
OverdraftMe specialises in business finance for tradies. No tax returns. Decisions from 1 hour. Up to $500K. Free broker service.
Get a free quote →Yes - tradies are one of the most common users of business overdrafts. Electricians, plumbers, carpenters, concreters, landscapers and other trades businesses regularly use overdrafts to bridge the gap between job completion and invoice payment.
No. Non-bank lenders assess tradie applications from 6 months of business bank statements. No tax returns, no BAS, no financial statements required.
With OverdraftMe, decisions come as fast as 1 hour from submission. Funds can be in your account the same business day in many cases.
Everything you need to know about business overdrafts - eligibility, rates, lenders, how to apply and the Payday Super changes in 2026. Free to download.
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