Facility
A Facility is an approved funding arrangement that allows a business to access money as needed. Common types include a Business Line of Credit, Invoice Finance facility, Working Capital Loan, or an asset-backed loan such as Vehicle Finance and Equipment Finance.
Unlike a one-time lump sum Business Loan, a Facility can be drawn down, repaid, and reused repeatedly — depending on its Credit Limit and structure.
Why Facilities Matter
Facilities provide flexible cashflow for industries that experience fluctuating revenue, such as tradies, truckies, cafés, and medical clinics.
They enable businesses to:
- manage payroll and ATO payments
- stabilise cashflow between customer invoices
- fund repairs, stock, or seasonal demand
- settle asset purchases at the right time
- keep credit lines open for emergencies
Facilities are especially important for rapid-growth businesses that use Invoice Finance or a Line of Credit to smooth long payment cycles.
How Facilities Work
- A Facility is approved with a set Credit Limit.
- The business can request a Drawdown of funds.
- Interest or fees apply only to the amount drawn.
- Repaid funds become available again (for revolving facilities).
- Asset finance Facilities settle directly with suppliers.
Facility eligibility depends on revenue, Borrowing Capacity, trading history, PPSR security, and bank statement strength.
To see how different Facilities work together in a full cashflow stack, explore our Business Cashflow System (WCL + LOC + Invoice) guide and the Business Line of Credit guide.
Related Switchboard Resources
Government info: business.gov.au