Quick answer
In the first hour after a cash shock, such as a breakdown, a late payment, a tax notice or a lost customer, stop and size the problem before you borrow. Work out exactly what must be paid, by when, and what money is coming. Call the people who can give you time: suppliers, the ATO, your insurer. Gather documents. Only then decide whether fast funding is needed and how much.
Key points
- Size the problem before you borrow anything.
- Separate what must be paid now from what can wait.
- Call the people who can give you time.
- Gather documents so funding can move quickly if needed.
The call comes in, or the email lands, and suddenly the week looks very different. A machine has died. A customer won’t pay. A tax notice has a date on it. Your instinct is to fix it now, which often means grabbing the first fast loan you can find.
An hour of structured thinking first usually leads to a smaller, cheaper, better fix. Here’s how to spend that hour.
Minutes 0 to 10: stop and breathe
It sounds trite. It isn’t. Decisions made in the first panicked minutes tend to be bigger and more expensive than they need to be. Make sure everyone’s safe if it’s a physical event, then sit down with a notepad or spreadsheet. You’re going to size the problem before you solve it.
Minutes 10 to 25: size the problem
Write down three lists.
What must be paid, and by when.
| Item | Amount | Due |
|---|---|---|
| e.g. Workshop for engine repair | $38,000 | Wednesday |
| e.g. Wages, PAYG, super | $22,000 | Thursday |
| e.g. Supplier invoice | $9,000 | Next Monday |
What money is coming, and when. Customer payments due, insurance claims, refunds, anything else realistic. Be conservative.
What’s in the bank now, plus any undrawn limits on existing facilities.
The gap between the first list and the other two, over the time that matters, is your real problem. It’s often smaller than the shock felt.
Minutes 25 to 40: call the people who can give you time
Time is often cheaper than money. Before you borrow, ask:
- Suppliers: can they accept a deposit now and the balance on delivery, or extend terms by a week?
- Your landlord: can rent move a few days?
- The ATO: is a payment plan available? Lodge anything outstanding first.
- The customer who owes you: can they confirm a payment date in writing, or pay part now?
- Your insurer: what’s covered, and how quickly can they pay?
Each yes shrinks the gap. Each written confirmation also becomes evidence for a lender if you do need to borrow.
Minutes 40 to 50: gather what a lender would need
Even if you’re not sure you’ll borrow, getting the documents together now means you can move quickly if you do:
- The invoice, quote or notice behind the problem.
- Your online banking login, tested.
- Photo ID for every director, and a heads-up to each of them.
- Your latest BAS and a current ATO portal statement.
- For property: address, value estimate, loan balance and owners.
- A two-sentence description of what happened and how a loan would be repaid.
Our guide to what slows an urgent business loan down explains why each of these matters.
Minutes 50 to 60: decide
Now look at the remaining gap and ask:
- Is it a timing problem or a revenue problem? A late customer or a one-off repair is timing. Losing your biggest client is revenue.
- What does waiting cost? See the real cost of borrowing in a hurry.
- What’s the smallest amount that solves the urgent part?
- How and when would it be repaid?
If it’s a timing problem, the gap is real and waiting costs more than borrowing, fast funding is likely the right call. Use the route planner to see which route fits.
If it’s a revenue problem, be careful. Borrowing can bridge a few weeks while you adjust, but it can’t replace lost income. Talk to your accountant or a free small business financial counsellor before taking on debt.
The first-hour checklist
| Step | Done |
|---|---|
| Everyone safe; site secure if relevant | ☐ |
| Listed what must be paid and when | ☐ |
| Listed what’s coming in and when | ☐ |
| Called suppliers, landlord, ATO, customer, insurer | ☐ |
| Gathered invoice, banking, ID, BAS, property details | ☐ |
| Decided: timing or revenue problem? | ☐ |
| Worked out the smallest amount that solves the urgent part | ☐ |
An illustrative example
A Hobart joinery business learns on Monday morning that its largest builder client has gone into administration, owing $64,000. The owner’s first instinct is to borrow $100,000. Instead, she spends an hour on the lists. Wages and a timber order total $41,000 over the next fortnight; $28,000 is due from other customers in that time; the bank holds $9,000. The real gap is about $4,000, plus a buffer. Her timber supplier agrees to 14-day terms on the order. She takes a small line of credit as a safety net and spends the rest of the week chasing new work and lodging a claim with the administrator. Illustrative only.
Common first-hour mistakes
A few reactions come up again and again, and each makes the problem bigger:
- Borrowing a round number. “$100k should cover it” usually means paying for money you didn’t need.
- Applying to several lenders at once. Multiple credit enquiries in a day make the next lender cautious.
- Skipping super or PAYG to make wages. It creates a bigger, more personal problem later.
- Telling no one. Suppliers, landlords and the ATO are far more flexible when you call them first.
- Signing the first offer without reading it. Even on a same-day loan, the contract deserves ten minutes.
After the first hour
If you decide to borrow, move promptly with the file you’ve gathered. If you decide not to, keep the lists. They’re the start of a simple cash flow forecast, and business.gov.au has a free template to build on. Many owners find that one shock is what finally gets them to track cash weekly, which makes the next shock far easier to handle. Even a simple weekly check of what’s due and what’s coming in gives you days of warning instead of hours.
Look after the people
A cash shock affects more than the bank balance. Staff notice when the owner is stressed, and suppliers notice when payments slow. A short, honest word with your team, without over-sharing, often steadies things. So does a call to your accountant or a trusted adviser, even just to talk the numbers through. Owners who try to carry the whole thing alone tend to make bigger, faster decisions than they need to. You don’t have to solve everything in the first hour; you just need to make sure the next decision is a good one.
Your next step
If the hour tells you funding is needed, tell us what happened, the gap you’ve worked out and when it’s due. Asking doesn’t touch your credit file, your details aren’t sent to a dozen lenders, and one real person reads it and calls you. The work you’ve done in the last hour is exactly what helps us move quickly. Start your enquiry here.
Frequently asked questions
Should I apply for a loan straight away?
Not in the first few minutes. Spend the first hour working out the real number and options. You'll borrow less and choose better.
Who should I call first?
Whoever can change the deadline: the supplier, the landlord, the ATO or the customer who owes you. Time is often cheaper than money.
What documents should I gather?
The invoice or notice behind the problem, your bank login, ID for every director, your latest BAS and ATO statement, and property details if relevant.
What if the shock is losing a major customer?
That's a revenue problem, not a timing problem. Borrowing can bridge a few weeks, but talk to your accountant before taking on debt to cover ongoing losses.
Can a broker help in the first hour?
Yes, by telling you which route fits and what you'll need, so you're ready if you decide to borrow.