Rethinking Working Capital: Why Cashflow Still Rules the Roost
With over sixty years of combined experience in working capital and receivables finance, Kevin Melville and I have learned a truth that never goes out of date: cashflow is king. Profit might look good on paper, but it doesn’t pay the bills. When the cash dries up, it’s game over—regardless of what the P&L says.
At Thane Commercial, we exist to help SMEs build flexible capital frameworks that preserve liquidity, drive confidence, and support sustainable growth. It’s about moving beyond rigid, property-secured funding models and into smarter, adaptive ecosystems that reflect the real-world rhythm of how business is done.
The principle is simple: cashflow is the foundation of business resilience.
Understanding the Working Capital Ecosystem
Working capital isn’t a single lever. It’s a system—an ecosystem, in fact—built on the dynamic interplay between:
- ✅ Supplier Funding
- ✅ Inventory Control
- ✅ Receivables Management
When one element comes under pressure, the entire operation feels it. Supplier terms tighten. ATO obligations slip. Stress creeps into the boardroom. Directors feel the squeeze—financially, reputationally, and personally.
The ATO Is Now a Key Stakeholder
In today’s environment, the ATO is no longer a passive background creditor. It’s fast becoming one of the most consequential forces in SME funding.
We’re seeing more and more businesses blindsided by:
- Director Penalty Notices (DPNs) making directors personally liable for PAYG, GST, and Super
- Credit reporting of tax debts over $100,000 (active since 2023), impacting supplier confidence and trade terms
- New enforcement and disclosure measures from 1 July 2025, which will dramatically reduce compliance timeframes
It’s not enough to be profitable—you need to be structured. Otherwise, funding options narrow, capital becomes more expensive, and flexibility vanishes just when you need it most.
The Limitations of Property-Secured Lending
The traditional approach to SME finance in Australia leans heavily on property security. But that model is increasingly out of step with modern businesses—particularly those that are fast-moving, service-based, or asset-light.
This rigid model:
- Is inflexible—available when you don’t need it, missing when you do
- Creates opportunity cost—trapping equity that could fuel innovation
- Forces poor trade-offs—like deferring tax to meet payroll
We’ve seen these gaps push SMEs toward high-cost, short-term lenders. And while those facilities can offer a quick fix, they often come at the cost of long-term viability and credit reputation.
Receivables & Trade Finance: Built for the Operating Cycle
At Thane, we specialise in structuring working capital around the rhythm of our clients’ businesses—not their real estate portfolios.
Receivables Finance and Trade Finance are proven tools that allow SMEs to:
- Pay suppliers early and secure favourable terms
- Unlock cash from invoices—often well before 60–90 days
- Meet tax and super obligations on time
- Reduce dependence on personal guarantees or property
These aren’t fringe products—they’re robust, regulated solutions that bring control back into the hands of operators.
Real-World Outcomes: How Thane Helps
Here’s how we’ve helped SMEs take control of their working capital:
🏭 Manufacturer – Flexibility Post-Bank Exit
Challenge: Exited Big 4 bank, needed a responsive facility
Solution: $5M Debtor Finance, $3M Trade Finance, $1M Equipment facility
🧪 Chemical Processor – Funded Through Transition
Challenge: Breakdown with funder, faced funding loss
Solution: $4M Debtor Finance with 12-month transition support
🚚 Logistics – NewCo Acquisition Structuring
Challenge: Needed liquidity from receivables during transition
Solution: $7M Debtor Finance facility tailored to acquisition model
🪵 Timber Wholesaler – Seasonality Support
Challenge: $14M peak debtors not covered
Solution: $15M Debtor + $5M Trade Finance to optimise buying power
📡 Telecom Contractor – Progress Claims Made Bankable
Challenge: Unbankable progress-claim model
Solution: $1.5M Invoice Finance facility—85% advance on claim-based invoices
What’s the Alternative?
Too many good businesses come undone—not because they’re unviable, but because they’re operating with a capital structure that doesn’t fit their trade cycle.
We see it all the time:
- Late ATO payments trigger director penalties
- Credit ratings suffer
- Supplier trust erodes
- Margins shrink
- Directors shoulder the risk personally
It doesn’t have to be that way.
A Better Way Forward
At Thane Commercial, we help business owners unlock the capital trapped inside their operations. Using tools like Receivables Finance, Trade Finance, and Supply Chain Finance, we give our clients the agility to meet obligations, the structure to attract funding, and the confidence to pursue growth.
Your receivables aren’t just numbers on a ledger—they’re one of your most powerful financial assets.
Let’s put them to work
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