Clinic Wage Weeks: Using LOC & Working Capital Loans to Smooth Doctor, Nurse & Admin Payroll
Clinic wage weeks cashflow plan using LOC and working capital loans – Switchboard Finance
Clinic wage weeks: using LOC & working capital loans to smooth payroll
Wages land every week or fortnight whether billings are up or down. A simple “wage week” plan using LOC and working capital facilities keeps payroll calm even when receipts move around.
The three clinic wage weeks
This article plugs into the broader Whitecoat Clinic Cashflow Safety Net and LOC vs Working Capital for Clinics guides so wage weeks don’t feel like roulette.
Map your wage weeks against real clinic cashflow
The first step is simply mapping wage weeks against when money actually lands. Most clinics pay staff like clockwork but see unpredictable cashflow from Medicare, insurers and patients.
A quick pass over your last 3–6 months of payroll and billings, backed by actual bank statements, shows which weeks are tightest and how big the “wage week gap” really is.
| Week type | Main outgoing | Main incoming | Typical pressure |
|---|---|---|---|
| Pre-wage week | Normal suppliers & small bills | Daily billings & some rebates | Feels fine until you remember wages are due next week. |
| Wage week | Doctor, nurse & admin pay + super | Limited extra receipts | Large debit out in one or two days, account balance drops sharply. |
| Catch-up week | Minor follow-up costs | Medicare, insurer & patient payments land | Account bounces back – until the next wage week starts again. |
Example: A four-doctor clinic in Melbourne sees almost no balance issues except every second Thursday, when payroll and super go out. Mapping this pattern shows they’re consistently short about $40k on those days only.
Use LOC for wages and working capital loans for setup costs
Once you can see the gap, separate “recurring wage weeks” from one-off setup costs. A clinic LOC keeps weekly and fortnightly payroll smooth, while a working capital facility covers things like new staff, training, or higher accounts payable when you expand.
Structuring it this way means the LOC handles regular pulls like salaries and PAYG, while the loan handles fixed transition costs, rather than everything hitting the same line of credit.
Example: A mixed-billing clinic sets a $120k LOC for wages and a small working capital loan for onboarding two extra nurses. The LOC moves up and down with payroll; the loan gradually winds down over 24 months.
Match receipts, claims and upgrades to your wage calendar
The final step is syncing your wage calendar with when claims clear. If insurers or corporates pay late, you can still keep accounts receivable tidy by leaning on invoice finance or a LOC instead of delaying payroll.
At the same time, you can schedule clinic upgrades – like new rooms or devices – so repayments sit outside your most intense wage weeks, using structures outlined in the Medical Fitout Finance and Medical Equipment Finance 2025 blogs.
| Move | What changes | Finance tweak |
|---|---|---|
| Align claims with payroll | Encourage earlier gap payments and faster insurer submissions. | Use the Invoice Finance service for slow payers during tight seasons. |
| Smooth out clinic upgrades | Stage fitout and device finance so repayments avoid heavy wage weeks. | Bundle projects through the Whitecoat Growth Pack rather than one-off deals. |
| Review wage pattern annually | Re-check rosters, sessions and wage timing as the clinic grows. | Adjust limits in line with the Whitecoat Finance Ladder and overall clinic plan. |
Example: A coastal practice brings its insurer claims forward by one week and adds invoice finance for a couple of slow corporate payers. Combined with a modest LOC, they stop dipping into personal savings every school holiday wage week.
Pay your people on time, even when receipts are messy
Wage weeks don’t have to feel like a cliff edge. When you size a LOC around your real clinic wage pattern and back it with a clean working capital plan, payroll becomes boring – in a good way. You can then layer on the Whitecoat Clinic Cashflow Safety Net so rent, suppliers and upgrades stay under control too.
If you’re constantly juggling pay runs and late receipts, it’s usually a sign your wage weeks and finance tools are out of sync. A quick review with a broker can align your LOC, working capital loan and invoice finance options with your real wage calendar – not just the bank’s appetite.
Clinic wage weeks FAQs
Short answers for busy practice owners who want wages paid on time without constantly topping up the clinic from personal savings.
Many clinics start by modelling two to four weeks of wages, super and on-costs in a simple working capital plan.
From there you can decide whether to hold that buffer in cash, a LOC limit, or a mix of both depending on how steady your billings are.
A business line of credit is usually better for regular wage swings, because you can draw and repay as receipts come in.
A working capital loan suits one-off costs like systems, extra staff or refits that support the clinic’s long-term wage base.
Build a basic 12-month cash flow forecast that highlights payroll weeks in a different colour.
If those weeks regularly push your overdraft near zero or force you to skip other bills, it’s a sign the clinic needs a clearer wage week finance plan.
Slow receipts are where invoice finance can help, especially for clinics with a lot of third-party payers.
You can bring forward part of those payments when needed, instead of stretching your wage weeks or asking doctors to wait for their money.
Expect lenders to review a mix of payroll reports and recent bank feeds to see how money moves in and out across wage weeks.
Clear patterns and clean reporting usually make it easier to approve the right limit without overcommitting the clinic.
