Café Cashflow System: LOC for Stock, Working Capital for Wages, Invoice Finance for Catering (2025)
Café cashflow system for hospitality owners – Switchboard Finance
Café Cashflow System (2025): LOC + Working Capital + Invoice Finance
Supplier runs, wage weeks, and slow-paying catering accounts cause Cashflow whiplash — even when you’re “busy”. This page maps the simple 3-part system and routes you to the right facility (and the next step).
Start at the Café & Hospitality Finance Hub. If you want the short version first, read Café Cashflow Pack.
| Timing problem | Tool | Pays for | Keep it safe by watching | Next link |
|---|---|---|---|---|
| Stock lands first, revenue lands later | Business Line of Credit | Supplier runs + stock spikes | Your Credit Limit (don’t over-draw) | Why Every Café Needs a LOC |
| Payroll week hits before the quiet week ends | Working Capital Loans | Wages + operating buffer | Your Servicing in slow weeks | Working Capital Loans 2025 |
| Catering is “paid later” (14–60 days) | Invoice Finance | Cash against catering invoices | Your Accounts Receivable trail | Invoice Finance 101 |
1) Stock runs: use a LOC to stop supplier stress
If you’re buying stock “light” because you’re scared of the next supplier invoice, you’re not managing inventory — you’re managing fear. A Business Line of Credit is designed to bridge that exact gap.
Keep it boring: draw for stock, repay as revenue lands. If you’re constantly pushing supplier dates, check your Trade Terms and fix the timing rather than “hoping for a big weekend”.
- Use it for supplier runs, not random expenses.
- Set a weekly repay rhythm (so it doesn’t turn into permanent debt).
- Track supplier pressure separately from Accounts Payable chaos.
2) Wage weeks: use working capital to stabilise payroll
Payroll is the bill that causes panic decisions: cutting shifts, discounting menus, or skipping supplier payments. A Working Capital setup is for smoothing those weeks — not “funding losses”.
The move: map the squeeze weeks and align funding around them using a simple Cash Flow Forecast. If you want the cashflow trio overview first, start at Business Loans.
- Know your “red weeks” (wages + rent + suppliers).
- Size repayments for winter/quiet periods, not peak season.
- Keep your BAS cadence in the plan so tax doesn’t ambush you.
3) Catering invoices: use invoice finance to stop waiting
Catering is amazing until it turns into: “We added $10k/month and we’re still broke.” That’s a timing issue — and Invoice Finance exists for that gap.
Approvals are easier when your invoice trail is obvious in Bank Statements. If you’re deciding between options, compare the café view here: Café LOC vs Working Capital.
- Use it for B2B/corporate invoices (not walk-in sales).
- Clean process: invoice issued → terms → follow-up.
- When you need cash, you Drawdown against the invoice instead of waiting.
Café cashflow system — FAQs
What do lenders check first in a café’s Approval Criteria?
Usually: consistent trading, clean bank patterns, and whether the facility matches a real timing problem (stock, wages, or invoices). If you want the “big picture” starting point, begin at Business Loans.
For a neutral small-business reference, see business.gov.au.
Do I need a formal Loan Agreement if I only use the facility “sometimes”?
Yes — even occasional use runs under the same terms. The win is choosing a structure that fits how cafés actually operate (not how lenders wish you operated).
How fast can it fund — what does Settlement usually look like?
Speed depends on your documents and how clear the story is, but the goal is removing the dead time between “need cash” and “cash available”. If you want a fast filter, use Check Eligibility.
Will I need a Director’s Guarantee for these café facilities?
Often, yes. It’s common for SME facilities — the key is that it’s explained clearly and matches the size + purpose of the funding. For the café pathway, keep the hub handy: Café & Hospitality Finance Hub.
Should cafés judge deals by weekly cost or the Comparison Rate?
Both matter. Cafés lose when they optimise one number and ignore the timing reality. The best deal is the one that stays comfortable in quiet weeks while protecting your growth weeks.
