Cashflow lending: a small business’s secret weapon
Oct 19 2021
When you’re running a business, cash flow is often one of the most difficult things to manage.
Because 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 – and they can cause significant issues for the day-to-day. Unfortunately, seasonal business fluctuations or late-paying clients don’t seem to care too much about your financial obligations.
In fact, research frequently shows that cash flow – rather than unprofitability – is a major reason why Australian 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 so 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 cash flow lending comes in.
What is cash flow lending? Quite simply, cash flow lending 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 can cash flow lending be used for? Cash flow lending 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.
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 meeting day-to-day obligations in the slower seasons.
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.
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 visit the Apply Now section on our website (it’ll take less than three minutes, we promise!) to get the ball rolling. Alternatively, call 1300 922 223. As long as you’ve got an active ABN, have been trading for six months or more, and have $10,000 or more of monthly turnover, you’re eligible to apply.