Funding Guide
Quick Summary
A service delivered today may not produce cash in the current funding period. For provider boards, the decision is how much deferred collection exposure the business can carry while meeting payroll and debt commitments. Keep that exposure visible before approving new rosters, lender drawdowns or expansion spending.
NDIA guidance current to 11 September 2026 says funding components have their own periods, usually three months. Once a period is exhausted, additional claims cannot be paid from it. Unused funds can carry into the next period of the same plan, but not into a new plan.
The guidance allows claiming in the next period when the participant and provider agree, enough funding remains for that period and the rest of the plan, and the provider accepts waiting for payment. Review service agreements and delivery schedules. This is conditional flexibility, not a promise that every deferred invoice will be paid.
For management reporting, distinguish three balances: ready-to-submit valid claims, agreed claims deferred to a later funding period, and unresolved funding or compliance exceptions. Keep the underlying accounting treatment consistent with your accounting policies.
NDIA describes two to three business days as the usual payment timing for valid my-provider claims. It also identifies longer timelines for checks and holds during reviews. Those processing times are not a collection forecast for services waiting on a future funding period. For plan-managed participants, invoices go to the plan manager, so forecast that collection route separately.
Our finance implication: test eligibility under the actual facility agreement before including deferred balances in an invoice-finance borrowing base. Ask the lender how it treats unsubmitted claims, deferred payment terms, ageing, disputes, debtor concentration and the identity of the payer. An NDIS connection alone does not establish lender eligibility.
Illustrative stress test, not a lender quote: assume $200,000 of receivables, including $50,000 deferred beyond the next payroll. At an assumed 80% advance against the remaining $150,000, gross availability is $120,000 rather than $160,000. Deduct existing drawings, reserves and fees, and apply the facility limit. The $40,000 difference is liquidity you should not spend twice.
Set an internal cap on the deferred balance and its age, with an owner and escalation date for every exception. Calibrate the cap to payroll obligations, unrestricted cash and committed liquidity rather than a percentage of annual revenue alone. Report the largest participant and funding-period concentrations using appropriately restricted supporting records.
If the stress forecast falls below the board’s minimum cash buffer, bring forward the lender discussion and defer discretionary expansion commitments. Resolve service changes with the participant and relevant care and compliance leads so financial action supports continuity of care. Do not assume the next period can absorb an unchanged roster plus accumulated claims.
For lender readiness, send one reconciliation from the debtor ledger to eligible collateral, then to net facility availability and the cash forecast. Explain timing movements separately from margin deterioration. Calculate covenants using the signed facility definitions; a cash shortfall and a covenant breach are different problems and may require different responses.
Policy facts checked on 14 September 2026. The cash controls and numerical example above are Provider Capital analysis, not NDIA requirements or a finance offer.
