Funding to hire staff: how to cover a new hire until they pay off

You’ve been doing the work of two people for months. Jobs are getting turned away, customers are waiting longer and you know the business could do more — if only there were another pair of hands. The question isn’t really “should I hire?” It’s “can I afford the gap between hiring someone and them paying their way?”

That gap is what you’d be funding. Let’s size it properly and work out which option suits.

What does a new hire really cost?

The salary is only the starting point. A realistic hiring budget includes:

• Wages at the right award rate or agreed salary.
• Super, currently 12% of ordinary time earnings.
• Workers’ compensation insurance, which varies by state and industry.
• Payroll tax, if your total wages exceed your state’s threshold.
• Equipment and tools — a laptop, a van, PPE, software licences.
• Recruitment and onboarding — advertising, time spent interviewing, training.
• The ramp-up — the weeks or months before they’re fully productive.

From 1 July 2026, Payday Super changed the timing too. Employers now pay super at the same time as wages so it reaches the employee’s fund within 7 business days. If you used to pay quarterly, your cash flow will feel that difference.

How long until a new hire pays for themselves?

This is the key number. A simple way to estimate it:

1. Weekly cost — total cost of the hire per week, including super and on-costs.
2. Weekly contribution — the extra gross profit they’ll generate once fully up to speed.
3. Ramp-up — how many weeks until they reach that level (and what they contribute along the way).

Add up the shortfall during the ramp-up, and that’s roughly the amount you’d need to fund. If the ramp-up is 12 weeks and the hire costs more than they bring in by a few hundred dollars a week during that time, the funding need is modest. If the ramp-up is six months, it’s much bigger.

Which funding option suits a new hire?

Situation	Tends to suit	Why
One planned hire, clear payback	Unsecured loan	Sized to the ramp-up; clear end date
Adding people in stages	Line of credit	Draw as each hire starts
Big expansion (team plus premises)	Property-secured loan	Larger amount, longer payback
Hiring to deliver a confirmed contract	Loan sized to the contract	Repaid from the contract’s income

Trading businesses can access unsecured options, typically $5,000 to $500,000, sized on turnover and bank statements. Property-secured loans run from $20,000 to $5,000,000.

If you’d like help sizing it, start a 60-second enquiry and a real person will call — no credit check when you first enquire.

What should you check before you hire?

A good coach will always ask you to stress-test the plan:

• Is the demand confirmed? A waiting list, a signed contract or consistent overflow work is much safer than hoped-for growth.
• What if revenue arrives a month late? Can you still pay the new person on time?
• Are you registered? You must register for PAYG withholding before your first payment you withhold tax from, and report through Single Touch Payroll.
• Is your award right? Paying the wrong rate creates a problem that compounds.
• Is your own role changing? Often the real payoff is freeing you to do higher-value work.

Our growth milestones checklist covers every registration and obligation that changes as you grow, including your first employee.

An illustrative example

Illustrative only. A plumbing business with one owner-operator and an apprentice is regularly booking work three weeks out. The owner wants to hire a qualified plumber. He estimates the new plumber will be billing close to full capacity after about eight weeks, once they’ve learned the systems and built up regular customers.

His funding plan ranks a modest unsecured loan first, sized to cover the eight-week shortfall plus a van fit-out. It also flags that Payday Super means he’ll need to budget super every pay run, and adds “register for PAYG withholding if not already” to his checklist.

What if you’re not sure you can afford it?

Sometimes the honest answer is to wait, or to start differently:

• Part-time or casual first, then increase hours as work builds.
• A contractor for overflow work, while you test whether the demand lasts.
• Hire after a known cash peak, so you’re not funding the ramp-up and a quiet period at once.

Casual, part-time or full-time: which costs less to fund?

Different employment types change your funding need. A casual role adds flexibility and a casual loading but no paid leave; a part-time role gives the employee certainty and you a smaller commitment; a full-time role maximises capacity but also your fixed costs. If demand is still settling, starting with part-time or casual hours and building up can shrink the ramp-up you need to fund. Check the relevant award with the Fair Work Ombudsman before deciding.

Ready to grow the team? Let’s fund it sensibly

Taking on your first or next employee is a milestone worth celebrating. We’ll help you size the funding to the real cost and the real ramp-up — not too much, not too little.

Getting started takes about a minute, with no credit check at that point. Your details aren’t shared around a pack of lenders; a real person looks at your business and gives you a call. Please answer accurately, especially your monthly deposits and what the hire is for, so we can match you properly first time.

See what your business could qualify for →