In Australia’s fast-paced business landscape, staying on top of cash flow is more crucial than ever. In 2026, on account financing—also known as trade credit or buy-now-pay-later for business—is rapidly evolving, thanks to advances in fintech and fresh regulatory attention. For business owners, understanding how on account arrangements work, and how to leverage the latest developments, could mean the difference between thriving and merely surviving.
What Does ‘On Account’ Mean in 2026?
‘On account’ refers to a purchasing arrangement where goods or services are supplied now, with payment deferred to a later date. Traditionally, this has meant 30-, 60-, or even 90-day payment terms. In 2026, however, the meaning has broadened. New players have entered the market, offering digital platforms that streamline approvals, automate invoice management, and integrate with accounting software. This evolution has made on account solutions accessible not only to large enterprises but also to SMEs and even sole traders.
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Digital trade credit platforms like Moula, Butn, and Prospa now offer tailored on account solutions, often with instant approvals and flexible terms.
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Integration with cloud accounting means real-time visibility on outstanding balances and due dates.
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New players in B2B buy-now-pay-later are bridging traditional trade credit and fintech, offering options that don’t require extensive business history.
Recent Regulatory and Policy Shifts
Regulators have taken notice of the growing reliance on on account finance. The Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) have both issued new guidelines in 2026 aimed at increasing transparency and protecting small business borrowers.
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Mandatory disclosure of fees: All on account providers must now clearly state interest rates, admin fees, and any late payment penalties upfront.
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Payment times reporting: The Payment Times Reporting Act was updated in early 2026, requiring large firms to publish their average payment times to small suppliers quarterly, making it easier to identify slow payers.
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ATO crackdown: The ATO has ramped up scrutiny of GST compliance for businesses using on account facilities, ensuring that GST is correctly reported when invoices are issued, not just when paid.
These changes aim to create a fairer environment for smaller businesses, who have historically borne the brunt of late payments and unclear credit arrangements.
Smart Strategies for Using On Account Finance
Leveraging on account facilities can unlock working capital and free up resources for growth. But it’s not without risk. Here’s how savvy business owners are making the most of on account finance in 2026:
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Negotiate flexible terms: Don’t just accept standard terms—many providers are open to customising repayment dates, especially if you have a good payment history.
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Automate reminders and reconciliations: Use integrated accounting tools to track due dates and avoid missed payments, which can quickly lead to fees or reduced credit limits.
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Monitor supplier reliability: With new transparency laws, check the Payment Times Register to avoid working with companies known for late payments.
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Understand the tax implications: Since GST is reportable at invoice date, make sure your accounting system is set up to avoid compliance headaches.
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Mix and match finance sources: On account shouldn’t be your only solution—consider trade finance, overdrafts, or short-term business loans for larger or unpredictable cash needs.
Real-world example: A Queensland-based construction firm recently switched to a digital on account provider, slashing invoice processing times from days to minutes and reducing late payment fees by 40%. Their CFO credits automated reminders and visibility into supplier payment times for the turnaround.
The Future of On Account: What to Watch
As 2026 unfolds, expect even more innovation. Open banking data is being used to assess creditworthiness in real time, making it easier for new businesses to access on account terms without lengthy paperwork. AI-driven risk assessments are helping providers offer dynamic credit limits that grow with your business. Meanwhile, government scrutiny means more transparency and accountability from both providers and large corporate buyers.
For business owners, the message is clear: on account finance is no longer just a back-office function, but a strategic tool for growth and resilience.