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What is Cash Flow Finance?

Cash flow finance is short-term financing that is used to help cover your business’ day-to-day expenses, by smoothing out your business’s cash flow.

When you’re running a business, cash flow is often one of the most difficult things to manage.

While your P&L may look pretty rosy, come the end of the financial year, the day-to-day reality is often somewhat different.

The peaks and troughs of money coming into the business are very, very real – they can cause significant issues for the day-to-day running of the business.

Unfortunately, seasonal business fluctuations or late-paying clients don’t seem to care too much about your financial obligations.

Research frequently shows that cash flow – rather than unprofitability – is a major reason why businesses go out of business.

While businesses can implement steps to improve their cash flow management (for example, stipulating full or partial payment up front, issuing tighter invoice terms or moving people to debt collection more quickly) and introduce measures to smooth those seasonal ups and downs, that will only go so far.

After all, there are still bills to pay, staff to employ and inventory to buy.

That’s where cashflow lending comes in.

5 Ways that Poor Cash Flow Can Damage your Business

Inability to pay suppliers – Unable to pay your suppliers reflects poorly on your business and impacts the ability to your deadlines and other obligations.
Late or unpaid debt repayments – This can adversely affect your credit score and impact your ability to get credit in the future. In a much more severe scenario, this can also result in legal action or even insolvency.
Inability to buy new inventory – This has a direct impact on the day-to-day operations of your business and if you are unable to pay for inventory then your business could be in serious trouble along with the lost opportunity cost of being able to cease inventory opportunities that may arise.
Unpaid staff wages – This can have a serious impact on your employees and can risk the reputation of your business.Making sure your staff have confidence in receiving their paycheck is key to recruiting and retaining good talent.
Loss of contracts – This is a direct result of you being unable to pay your suppliers, your staff or even your debts-you can end up losing your contracts and even your contacts.

What can Cashflow Finance be used for?

Cash flow finance can be used for a multitude of situations, whether it’s paying staff salaries, settling bills, taking advantage of a new business opportunity, or buying new equipment, cash flow finance can help with your day to day operating expenses.

Cash flow is an important factor to determine whether your business has the ability to remain solvent as well as its ability to meet any future requirements for capital and growth.

What are the 3 Types of Cash Flows?


Operating activities, which is mainly the cash flow from day to day running of business


Investments, which is the cash flow from future ventures


Financing, which is cash flow from bank loans, equity, and dividends

Our Simple Application Process


Our online application process takes less than 5 minutes to complete and gives us all the information we need to make an offer.


Our team assess your application quickly, taking into consideration cash flow and general cash management.


If approved, you can have the funds in your account within 3 hours – even if you have existing loan facilities.

Fast and Flexible Loans to Grow your Business

Rocket Launch
Move fast and confidently

Fill out an application form, upload your statements and get a decision within an hour & funds within 3 hours.

High approval rates

We’re New Zealand’s most open-minded lender and can often help even if you’ve been declined by others before.

Cash flow-friendly repayments

Once you have your loan with Bizcap, we organise daily or weekly repayments based on your businesses peaks and troughs.

FAQs about Bizcap’s Cash Flow Finance

What is cash flow finance?

Quite simply, cash flow finance is short term finance that is used to help you cover the business’s day-to-day expenses by smoothing out your business’s cash flow.

What is a cash flow example?

Cash is the difference between the cash received by a business from sales of its goods or services and the cash spent on its operations, financing, and investments. It is normally calculated over a specific period of time and varies from business to business.

What can cash flow finance be used for?

Cash flow finance is designed to be used to cover your regular business transactions – for example, paying staff salaries, paying bills, taking advantage of a new business opportunity or buying new equipment.

Why is cash flow so important?

Cash flow is an important factor to determine whether your business has the ability to remain solvent as well as its ability to meet any future requirements for capital and growth.

What is considered a good cash flow?

Cash flow that’s greater than 1 (Incoming cash/outgoing cash) is usually considered good this indicates that there is more cash coming into the business than going out, so cash flow is positive and is available to meet short term financial obligations.

Can cash flow loans be used to help seasonal businesses?

Absolutely – seasonal businesses are a prime example of when cash flow finance is particularly useful. It can help you put everything in place to ensure you have a really successful peak, while not worrying about struggling to meet day-to-day obligations in the slower seasons.

How do you explain cash flow?

Cash flow is the net amount of cash that a company has at any time, it is difference between money coming into a business minus money spent to keep the business running. It can be either positive or negative.

How is cash flow calculated?

Cash flow is calculated by subtracting cash spent on operations, financing and investments from cash received from sales of goods or services, financing, and investments.

How quickly can I get a cash flow loan?

When you need funds to help smooth your cash flow, you need them quickly. Bizcap understands small business, which is why we get moving as soon as you need us. We can have funds into your account within three hours – meaning you can have the peace of mind to keep your business running without worrying about how quickly money is coming in. The last think you want to be worried about it laborious applicatication processes and tedious documentation requirements, it’s the driver of why Bizcap exists – to provide you with access to a business loan with speed, ease and confidence.

How long can I take out a cash flow loan for?

Bizcap business finance can be over any time period between three months and one year and can be repaid on a cash flow friendly basis – daily or weekly repayments meaning they can be easily factored into the business’s regular activity.

How can I apply for a business loan to help smooth my cash flow?

Simply click the Apply button on the top right of this page (it’ll take less than three minutes, we promise!) to get the ball rolling. Alternatively, call 0800 249 227. As long as you’ve got an active NZBN, have been trading for six months or more, and have $12,000 or more of monthly turnover (averaged and minimum over a 6 month period), you’re eligible to apply.

What are the fees and repayments?

The fees and repayments are tailored to your individual circumstances. They will be determined by your cash flow, payment history and general financial strength, as well as how many years you’ve been trading, your assets and what you’re using the funds for. Repayments are made either daily or weekly.

I already have a loan with another lender, can Bizcap help me?

Absolutely. Many of our clients have loans with other lenders.

What are the interest rates, and how are they determined?

It differs from client to client. We call it a Factor Rate, and it’s a fixed fee on the term of the loan. It’s based on the risk assessment on your loan and, as you build a relationship with us, that Factor Rate will decrease. Your interest rate will depend on several things, including your cash flow, how long you’ve been in business, your assets and what you intend to use the funds for.

Will you check my personal finances?

No. We’re not a personal lender, so we don’t need to check your personal finances – unless your business transactions are going into your personal account. We just need your business bank statements. We will, of course, check the credit reports of the business and its owner(s).

What if I’m a startup business?

We usually need a minimum of six months’ trading history, however, if you have an existing business and need funding for a new venture, please get in touch and we’ll be able to quickly assess whether we can help you or not.

“Bizcap’s purpose is to provide small to medium New Zealand businesses with loans in a simple and efficient manner. Bizcap will review the loan application from a prospective borrower and act within its rights and obligations under the Credit Contracts and Consumer Finance Act (CCCFA). Further, Bizcap where relevant will act within the parameters of the Companies Act 1993 to ensure appropriate execution of a company to the contract.

Bizcap at its sole discretion will determine what security it requires from any party to the loan, being the borrower and any Guarantor/s if relevant in order to approve the loan.

Bizcap may request one or more of the following:

(a)         A registered or registerable security interest in accordance with the Personal Properties Securities Act 1999. Bizcap in any event specified under its loan agreement may enforce its legal interest as security against all relevant parties to the contract presently and after acquired property, specified collateral, or both; and

(b)         A charge over any or all real property, which can or will be registered by a charging order, caveat, sale order or a mortgage in accordance with the provisions stipulated in any or all the loan documents, and under the governing legislation in New Zealand being the Property Law Act 2007; and

(c)          A corporate and/or a personal guarantee whereby a guarantor guarantees the full execution of the obligations of the borrower and agrees to be wholly liable in their own capacity for any acts or omissions of the borrower. The guarantee will agree to forfeit their interests in their own real and or personal property to Bizcap in the event of a default under the loan they are a guarantor to.

Bizcap encourages all prospective borrowers, guarantors and any relevant entity that engages with Bizcap to seek independent financial and legal advice to ascertain the appropriateness before and after a loan application by Bizcap is approved.”