Service
Business overdrafts, sized to how your cash actually flows.
The gap between paying wages and being paid is the oldest problem in business. An overdraft done well covers it cheaply and quietly. Done badly, it becomes permanent expensive debt. We structure the limit, the security and the pricing properly.
- Founded by two former bankers
- Commercial and business finance specialists
- Perth based, working Australia wide
- MFAA member
The working capital workhorse, structured properly
Rockwall Finance arranges business overdrafts and working capital lines for businesses across Perth and Australia. An overdraft is the simplest working capital tool there is: an approved limit on your trading account, drawn when cash flow demands it, interest charged only on what is drawn for the days it is drawn. The product is simple. The structuring decisions around it, the limit, the security, and what should not be on the overdraft at all, are where we earn our place.
We come at this with a bank credit background, which means we know how lenders size these facilities and what makes an application strong: clean account conduct, a clear story for what the limit covers, and a cash flow cycle the lender can see. We also know the difference between a business that needs an overdraft and a business that needs something else wearing an overdraft's name, and we will tell you which one you are.
What an overdraft should cover
- The timing gap between paying suppliers, wages and rent and being paid by customers
- Seasonal stock builds and the quiet months either side of them
- A buffer for the unexpected, sitting undrawn and costing only the line fee
- Progress claim and retention gaps for contractors, alongside the job's other funding
What it should not cover: vehicles, equipment and other long life assets, which belong on term finance like a chattel mortgage where the rate is lower and the debt amortises, and permanent core debt, which is cheaper on a term loan.
Secured, unsecured and what sits between
Secured overdrafts, usually backed by property, carry the biggest limits and the sharpest pricing. Unsecured overdrafts and revolving lines from banks and fintech lenders are widely available for trading businesses on the strength of revenue and account conduct, at smaller limits and higher rates. Equipment backed lines sit between, releasing working capital from plant you already own. The structuring question is rarely just what is cheapest: it is what security exists, what it is already supporting, and whether the family home should be tied to a fluctuating line at all. We put those options side by side with real numbers.
The stuck overdraft problem
The most common working capital fault we see: an overdraft that was meant to fluctuate but now sits permanently drawn at or near its limit. That is core debt paying overdraft prices, and it usually built up slowly enough that nobody noticed the structure stopped fitting. The fix is unglamorous and valuable: term out the stuck core onto cheaper amortising debt, keep a smaller overdraft for the genuine ups and downs, and the same dollars suddenly cost less every month. If the pressure is specifically slow paying commercial customers, invoice and debtor finance against the receivables book is often the better tool, and for the broader picture our commercial finance page covers the full working capital toolkit.
Frequently asked questions
How does a business overdraft work?
An overdraft is an approved limit attached to your business transaction account that you can draw into when the account would otherwise hit zero. You use it as cash flow demands, interest is charged only on the drawn balance and only for the days it is drawn, and the facility revolves: money in reduces the balance, money out draws it again. There is usually a line fee on the limit whether you use it or not. It suits the gap between paying suppliers and wages and being paid by customers, not the purchase of long life assets, which belong on term finance.
Do I need property security for a business overdraft?
Not necessarily. Secured overdrafts, usually against property, get the largest limits and the sharpest pricing. But unsecured overdrafts and overdraft style lines from banks and fintech lenders are widely available for trading businesses, typically assessed on revenue and account conduct rather than bricks, with smaller limits and higher rates that reflect the lender's risk. Director guarantees are standard either way. The right answer depends on what security exists, what it is already supporting, and whether tying the family home to a fluctuating working capital line is the best use of it, which is a structuring conversation we have before going to any lender.
What does a business overdraft cost?
Two parts: interest on whatever is drawn, charged daily, and a line or facility fee on the approved limit, charged whether you draw or not. Secured facilities price well below unsecured ones. The structural point matters more than the headline rate: an overdraft that sits permanently drawn at its limit is expensive debt doing the job of a term loan, and converting that core debt to a term facility while keeping a smaller overdraft for the genuine fluctuation usually saves real money. That restructure is one of the most common pieces of work we do.
Is an overdraft better than invoice finance?
They solve different shapes of the same problem. An overdraft is a fixed limit, simple and flexible, suited to general timing gaps. Invoice finance advances cash against your unpaid invoices, so the available funding grows with your sales, which suits businesses whose receivables book is large and growing, or where the gap is specifically slow paying commercial customers. Plenty of businesses run both: a modest overdraft for day to day timing and invoice finance carrying the receivables. We compare the two against your actual cash flow cycle rather than defaulting to either.
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Want to talk it through?
Book a meeting or make an enquiry. We'll tell you whether it's fundable, how we'd structure it, and which lender we'd take it to. No obligation.