7 Business Costs You Can Finance Instead of Paying Upfront (2025 Guide)

Business costs you can finance for Australian small business owners – Switchboard Finance

Business Owners · Switchboard

Business Owners · 2025 Guide

7 Business Costs You Can Finance Instead of Paying Upfront

Most business owners still pay big lump-sum bills in cash – then wonder why the account always feels empty. In 2025, you’ve got more finance options than just “buy it outright or don’t do it”.

This guide walks through seven common costs you can spread over time using smart products like Working Capital Loans, Business Lines of Credit and equipment facilities – all tied into the Business Cashflow System we use with our clients.

1. Think in three buckets before you finance anything

Instead of looking at every bill in isolation, it helps to sort costs into simple buckets. That way you can see what should be financed, what should be paid from cashflow, and what belongs in a longer-term plan.

A quick sanity check: if something will help the business for years, but the bill hits in one big chunk, it probably belongs in a finance conversation, not in one bad month of cashflow.

Here’s an easy way to frame it before you talk to a broker or look at Asset Finance options:

Bucket	Examples	Typical approach
Assets	Vehicles, machinery, fitouts, gear that lasts years	Good candidates for structured finance, not paid all at once.
Cashflow	Stock, wages during a growth push, seasonal dips	Often suit short-term funding or a cashflow facility.
Growth & strategy	New branch, major marketing push, system upgrades	Should sit inside a simple plan or Cash Flow Forecast.

Once you’ve sorted your big expenses into these buckets, it’s easier to match them with the right facility instead of making every decision on “do we have cash in the bank today?”.

From there, you can plug your plan into the Business Owners Finance Hub and the main Business Loans options you actually qualify for.

Real example: A Melbourne trade business used to pay everything cash – new ute, tools, even a small fitout. Once we split their spending into assets vs cashflow, we moved the big long-life items onto finance and kept day-to-day cash free. Within a year their bank balance looked calmer even though revenue was about the same.

2. Seven business costs you can actually finance

Here’s where it gets practical. These are seven costs we regularly see clients finance in a smarter way instead of smashing their cash reserve.

The goal isn’t “finance everything”. It’s to line up the cost with how long the benefit lasts – and use the right product from your Working Capital Loans or Business Line of Credit Guide playbook.

Use this table as a quick sense-check before you pay a big invoice in one hit:

Cost type	When finance makes sense	Typical product match
Vehicles & work utes	Upgrades tied to revenue – sales, service or delivery work	Vehicle facilities, linked to Vehicle Finance and your main loan plan.
Machinery, tools & gear	Equipment that directly helps you produce more or faster	Specialist Equipment Finance for plant, tools and machinery.
Fitouts & refurb works	New clinic, café, office or warehouse layout with long life	Fitout-style facilities or bundled Plant & Equipment funding.
Bulk stock purchases	Buying ahead for peak season or to lock in supplier pricing	Short-term cashflow solutions from the Invoice Finance 101 playbook.
Large supplier bills	Big one-off orders or tight Trade Terms that squeeze cash	A revolving facility linked to your main Working Capital needs.
Growth hires & training	Bringing staff on ahead of revenue you know is coming	Short-term growth funding anchored to a simple Fast Business Loans plan.
ATO & compliance clean-up	Clearing past-due tax while keeping the lights on	Structured repayments via Low Doc Asset Finance or cashflow facilities.

For some of these, it’s cleaner to park the cost on an asset facility. For others, it’s better to tap a revolving line instead of locking yourself into a long repayment for a short-term cost.

That’s why we usually tie this list back to your overall plan and the Low Doc vs Bank Loans options you actually qualify for – not just what the internet says is possible.

Real example: A café owner in the southeast wanted to upgrade gear, repaint the shop and stock up for summer. Instead of maxing out the account, we split the plan: equipment on structured finance, bulk stock using their cashflow tools, and the rest timed with their Tax Deduction advice. The upgrades happened without emptying the till.

3. Match the cost to the right facility (and avoid overcomplicating it)

The win isn’t just “getting approved”. It’s matching the right cost to the right tool so repayments feel normal, not stressful, and your bank balance doesn’t yo-yo every month.

Most plans end up using a mix of asset facilities, a simple cashflow tool and maybe one main Low Doc Vehicle Finance or Low Doc Asset Finance line as your business grows.

Here’s a simple way to think about product choice without drowning in jargon or spreadsheets:

If the cost looks like…	Consider using…	Why this often works
A long-life asset (3–7 years)	Asset or equipment facility tied to the item	The asset pays itself off while it earns income over time.
A short, sharp cash squeeze	A small facility or Short-Term Loan	You get through the squeeze without adding a long new commitment.
Ongoing up-and-down expenses	A revolving tool from your Invoice Finance or LOC toolkit	You borrow and repay as needed instead of locking into one big lump.

We then wrap that into a simple, one-page view of your finance stack so you can see, at a glance, what’s funding what – and how it lines up with the Cash Flow Forecast you’re working to.

If you’d rather not stitch this together alone, we can map your seven biggest costs, line them up against the Business Cashflow System, then recommend a clean mix of Business Loans, Business Line of Credit and low doc facilities that match how your business actually trades.

Real example: A plumbing business came to us with random card debt, an overdraft and one old vehicle loan. By reorganising their stack – vehicles on proper facilities, stock and ATO on structured funding, day-to-day on a simple line – they went from “always behind” to predictable, boring repayments in under a year.

From there, every new cost gets judged against a clear plan, not a gut feel at the counter when the supplier hands you a big invoice.

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Business cost & finance FAQs

Can I really finance more than just vehicles and big machines?

Yes. A lot of owners still think finance only means trucks and excavators. In reality, many lenders now offer flexible Business Loan options for stock, growth projects and ATO catch-up, as long as the numbers stack up.

What’s the difference between a loan and a line of credit for bills?

A standard term loan has a set amount and end date. A Business Line of Credit is more like a flexible pool – you draw what you need and pay it back as cash comes in. Both have their place depending on how your costs behave.

How do I handle slow-paying customers without draining my cash?

If you are constantly waiting on invoices, tools like Invoice Finance can sometimes help bring some of that money forward. Used well, that can smooth out cashflow so wages and suppliers still get paid on time.

Is short-term funding always risky for small businesses?

Not if it’s planned. A well-structured Short-Term Loan that matches a clear project or season can be helpful. Problems usually start when short-term money is used as a band-aid with no plan to pay it back.

What should I have ready before talking to a broker?

It helps to know your top upcoming costs and have basic numbers ready. Simple info like recent trading, margins and any existing debts makes it easier to map out options and work towards a sensible Pre-Approval.