Payroll due tomorrow and the money isn't there

How did it get to the night before payday?

Almost every payroll emergency has the same shape: the money was supposed to be there. A big customer was meant to pay last week. A progress claim was certified but not yet transferred. A busy month brought more stock purchases than expected. Then the pay run is prepared, the bank balance is checked, and the gap appears.

It is a stressful moment, but it is also one of the most fixable emergencies in business, as long as you work through it in the right order.

What should I do tonight?

1. Know the exact number. Pull the pay run from your payroll software. Write down net wages, PAYG withholding for the period and the super that will follow. Under Payday Super, super generally has to reach each employee’s fund within 7 business days of payday, so it is no longer a quarterly problem.

2. Count what can really arrive. Check cleared funds and any customer payments you’d stake money on before the transfer cut-off. Not “they said they’d pay” — money you’re confident will land.

3. Chase the biggest overdue invoices now. A direct call from the owner, tonight or first thing tomorrow, often moves a payment that emails didn’t. Even one invoice can halve the gap. Our page on a customer who didn’t pay has the script.

4. Talk to your payroll provider. Ask about cut-off times for same-day processing. Knowing whether you have until 10 am or 3 pm changes the plan.

5. Don’t quietly short-pay staff. Wages must be paid in full and on time under the relevant award, agreement or contract — at least monthly. Short-paying “just this once” creates underpayment risk that costs far more than a short-term loan.

How fast can emergency payroll funding land?

Speed depends on the route and how early in the day you start.

Your position	Likely route	What’s possible
Trading 12+ months, smaller gap, clean bank statements	Unsecured cash-flow loan	Same-day funding possible for smaller amounts
Larger gap, property with equity	Caveat loan or second mortgage	$20k to $250k possible same day
Recurring payroll squeeze	Line of credit	Set up once, draw each pay cycle
Very large payroll, property security	First or second mortgage	Up to $5m possible within 24–48 hours

If this is a one-off, a short-term unsecured emergency loan is usually enough. If payroll pressure keeps coming back, set up an emergency line of credit so the next fortnight is handled before it becomes urgent. The emergency payroll funding page compares them in more detail.

Illustrative example: a cafe with a late catering client

Illustrative only. A Sydney cafe group runs fortnightly payroll of about $46,000. A corporate catering client is 40 days late on a $31,000 invoice. On Wednesday night, the owner sees the account will be about $24,000 short for Thursday’s pay run.

Wednesday night: the owner emails the client’s accounts team and calls their contact first thing Thursday, who promises payment by Monday — not in time. Thursday 8 am: the owner starts a short enquiry with bank statements ready. A $30,000 unsecured cash-flow loan, sized on turnover, is possible the same day. Wages go out on time, and the loan is repaid when the catering invoice lands the following week.

What about the super that follows?

Payday Super means a wages shortfall usually becomes a super shortfall within days. If you’re borrowing for wages, include the super amount in the same funding, rather than solving one problem and creating another. The payday super shortfall page explains the deadlines and what happens if super is late.

What do lenders need to see for payroll funding?

Payroll emergencies are common, so lenders who fund them quickly know exactly what they want. Having it ready before you enquire is the easiest way to save hours:

• Recent business bank statements, usually the last three to six months, so turnover and regular deposits can be seen.
• Photo ID for each director or the owner.
• Your ABN or ACN and the business’s trading address.
• The pay-run summary showing net wages, withholding and super for the period.
• An aged receivables list, which shows the lender where repayment is likely to come from.
• Property details, if you’re offering security, including the current home loan balance.

Lenders aren’t looking for a perfect business. They’re looking for a business that trades, has a temporary gap and has a sensible way to close it. A payroll shortfall caused by one late customer is exactly the kind of situation they understand.

How do I stop this happening next payday?

Once this pay run is covered, spend thirty minutes on prevention. Look at when your biggest customers actually pay, not when the invoice says they should, and line that up against your pay cycle. If payroll lands a week before most receipts, a standing facility is cheaper and calmer than repeated emergencies. Consider moving a pay cycle, tightening payment terms on new work, or setting aside each payday’s super and withholding in a separate account the day receipts land.

Start before the cut-off

The earlier you start, the more routes are open. Begin the 60-second enquiry with your payroll total and payday in front of you.

There’s no credit check when you first enquire, your details stay with one specialist instead of being sent to a list of lenders, and a real person calls you back quickly. Give us the actual pay-run figure, the time your payroll provider needs funds by, and whether you have property — it helps us pick a route that lands before the transfer window shuts. Check what you can access today.