15/10/2026
Putting personal money into a business isn’t necessarily a problem.
Sometimes a business has a temporary cash flow shortfall and additional funding gives it the breathing room it needs.
But if the director keeps having to put more money in to cover wages, tax or suppliers, it’s worth looking at what that funding is actually achieving.
Is the business moving back towards supporting itself? Are overdue debts coming down? Is there a clear reason for the shortfall that is being resolved?
Or is the extra money getting the business through another week before the same problem comes back?
ASIC identifies increasing reliance on personal funds as one possible warning sign of financial difficulty. That doesn’t mean the funding itself is the problem. The question is whether the underlying position of the business is improving.
If the director keeps putting money in and very little is changing, it may be time to look more closely at why the business continues to need that support.