Explore How Cashflow Loans Assists in Growing Your Business
There can be several reasons why your business might require financing. You might not have sufficient funds to cover all the operational costs involved, want to expand your current established business, invest more in inventory, rent a bigger office or factory space or employ new staff. Whatever the reason, cashflow funding from LoansOne will offer you the required capital and help you out from this temporary money crunch.
Cash flow funding is also known as working capital loans. You can use these funds to finance your business growth. This funding assists business owners facing unexpected financial challenges and cash shortfalls that impede a businesses growth.
What are Cashflow funds?
A cash flow loan is an unsecured borrowing type of funding used for the daily operations of small businesses or start-ups. You can repay the funds from business income generated throughout the loan term. You can apply for cashflow funding from LoansOne for any worthwhile business purpose. Our business lending partners assess the turnover of the borrower’s business before approving the loan. Usually, lending decisions are made depending on the factors like credit history, collateral to submit and the profit and loss statement of the business. It helps us to know the risk of loan default and whether the borrower can repay the loan amount or not.
How does Cashflow Finance operate?
Most small business owners seek a cashflow loan when they have an unexpected business expense or want to take advantage of a business opportunity to good to miss out on. Due to the short-term nature of these loans, there are high-interest rates compared to traditional bank loans. Some lenders will also have application fees for cashflow loans which can also be higher than the traditional loan, and the borrower might have to pay high late payment fees for a small business cashflow loan depending on the lender.
LoansOne have a different approach and work with lending partners to ensure the best outcome for cash flow loans for small businesses. The application process is hassle-free, and you will get the approval within hours not days. Depending on your revenue, you can borrow between 5000 to 250000 Dollars in cashflow loans. You can repay the loan in installments or have all costs capitalised and repaid at the expiry of the loan.
For example, you have a bakery and are looking for a loan of $9000 to buy various ingredients like cookies, pastries and bread. You cannot apply for asset finance as the loan amount is small and you do not have security to offer. The best way to get the required funds is through business cash flow loans. When the bakery sells its products and converts them into cash in the next few weeks, you can repay the loan to the lender.
How are Cashflow funds different from other loans?
A cash flow loan does not require any personal or business asset or property as security for approval. Instead, LoansOne lending partners fund on the basis of past turnover of the business over the last 6 months. These loans are usually available for a short term of 1 – 6 months. You will need past trading figures and bank statements available before applying for cash flow funding. It will assist you in knowing how much capital you generate and how it moves through the company. Repayment terms can vary in this loan. However, they can be structured to meet your business needs.
If you have funds tied up in investments or have had large expenses in your business, you can use this type of funding to avoid any cash flow issues. Cashflow finances are a great solution in these circumstances. You can use cash flow loans for small businesses for the following purposes.
- Refinance existing loans.
- Business expansion
- Cover the cost of marketing, research and development and hiring new employees.
- Take benefit of the supplier volume discounts with no cash flow strain.
- Purchase inventory to meet sudden demands
- Funding until debtors pay.
Eligibility Criteria of small business cashflow loan
To become eligible for business cash flow loans, you should meet some of the following criteria.
- 6 months trading history
- Registered ABN or ACN
- Business bank statements
- Not be in an excluded industry
- No Bankruptcy
- Been in business for at least 6 months
- Not be a start up without security to offer
Still, confused about what is a cash flow loan? Get in touch with us to know more and take advantage of the low-cost funding for supporting your business growth.
Frequently Asked Questions
Cash flow funding is also known as working capital loans. A cash flow loan is an unsecured type of funding used for the daily operations of small businesses and is usually assessed from the business’s turnover
A cash flow loan is used mainly for day to day running of the business and cash flow or when unexpected circumstances arise.
A cash flow loan does not require any personal or business asset or property as security for the loan. This type of lending can provide quick access to capital for businesses without the need for traditional collateral, but it may also come with higher interest rates due to the increased risk for the lender.
Provides quick access to capital, with flexible repayment terms and improved cash flow management.