Redefining debt: the case for small business cash flow loans
Cashflow is the circulatory system of your business, you need the arteries of your business to be full and the pennies flowing freely to keep up with stock, waiting periods, staff payments etc. What happens when you get a blockage though? Large, secured loans from traditional banks are wildly unnecessary if you are facing a temporary cash flow problem. You don’t swat a fly with a hammer after all. So when would these small temporary loans be applicable? Who should use them and when?
1) What is it?
A typically short term, cash flow assisting loan that is unsecured and generally of an easy and immediate nature. Your assets will not be at risk and your approval time will be dramatically faster than banks. It is not designed to build your business with as you might use a business loan, it is also not for unhealthy businesses desperately seeking to stay afloat. It is for reasonably healthy businesses that are a victim of timing or temporary under funding. You may need to pay in advance for stock that already has a buyer – but lack liquid funds etc.
2) What’s the difference?
Bank based business loan or cash flow loan? What’s the difference?
- Firstly, a cash flow loan is usually of short duration and will be unsecured.
- You will not be required to use your home or personal assets for collateral and you generally should avoid banks for this kind of loan – keeping your personal assets safe and free from debt hassles.
- The health of your business is the determining factor, not your assets.
- Cash flow loans are typically faster and less troublesome to achieve – perfect for an immediate financial boost.
- They are a temporary cash flow solver, not a lifeline.
3) Who needs it?
What are some common circumstances you could find yourself in that would necessitate a cash flow loan?
- Those who needs funds fast but have guaranteed cash coming soon.
- Those buying bulk stock at discount prices.
- Meeting a rising business demand with new equipment (new coffee machines for busy cafe or new lawnmowers for growing gardening business etc.)
- Temporary staff for a big event or busy period (event companies, special holidays and surge periods etc.)
- Market expansion – perhaps you need some finance for a new store in a high demand area or a new fleet of trucks for a booming interstate trucking company etc.
So if you find yourself in any of the above scenarios, consider forgoing the big 4 and use the fit for purpose, snappy and hassle free cash flow loans now available here.