Need help in your business with cash flow management? We’re here to help.
Traditional bank loans typically have stringent lending criteria, such as reviewing profit and loss statements, cash flow statements, and sometimes business plans, along with often requiring collateral like property. The application process for a bank loan can be lengthy, taking weeks to months, which may not be suitable for situations requiring quick access to funds.
In contrast, cash flow loans have more flexible criteria. Lenders may examine recent bank statements to assess the borrower's ability to repay, using advanced technology for credit evaluation. This streamlined process generally eliminates the need for extensive paperwork like business plans and detailed financial statements.
Many businesses experience seasonal peaks and troughs in revenue. A cash flow loan can help bridge the gap during slower periods, ensuring you have the funds to cover ongoing expenses like payroll, rent, and inventory without disrupting operations. Cash flow finance provides a lifeline to keep your business running smoothly, especially when future cash flow may be uncertain.
Sometimes, unexpected opportunities arise that require quick access to capital, such as a bulk purchase of discounted inventory or a limited-time investment. A cash flow loan provides the flexibility to act swiftly on these opportunities, allowing small businesses to capitalise on time-sensitive deals. This type of business loan can lead to increased profits or business growth when used strategically.
Maintaining healthy working capital is crucial for the day-to-day functioning of your business. A cash flow loan can provide the necessary funds to cover short-term expenses, manage accounts payable, and ensure that your business operates smoothly during periods of delayed receivables or financial pressures. Cash flow lending offers a practical solution to meet immediate financial needs without the lengthy approval process often associated with asset-based lending.
2024 / Mortgage Brokers Co. Jackson McCarthy is a credit representative (488785) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237)
Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does notconstitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.