What is a cash flow loan?

A cash flow loan is a short term business loan where the lender offers a loan backed by revenue that is expected to be earned in the future. Cash flow loans are ideal when business owners need access to finance quickly. This could be because of a cash flow issue or because you need to make a quick investment, regardless of what it is for, a cash flow loan can help you get from A to B.

However, it’s important to bear in mind that cash flow loans are not a long-term solution for managing cash flow. The importance of cash flow forecasting should not be underestimated by SME owners, as they can help build sustainable business plans. Keeping cash flow healthy is essential to any business, especially for seasonal industries, which can be tough during quieter periods. Short term loans such as cash flow loans are designed for small businesses, where cashflow can be up and down.

Why do business owners choose cash flow loans?

People choose cash flow loans for various different reasons to suit the needs of their business, this occurs often with small businesses as they grow and build up their customer base. Cash flow loans keep a business ticking over but more importantly, operating cash flow is one of the key measures that investors look at in evaluating any business. Even a highly profitable business can fail if it’s cash flow is insufficient.

Money is everything in business and it certainly gives a business opportunities to expand and grow. If a business has sufficient funds, it can be used to move the business forward and grow. It may want to invest in new equipment that will help a business operate better or even buy in external expertise to invest in R&D, to launch a new marketing campaign, upgrade its software, train or employ new staff etc. The point is, having sufficient cash readily available allows a business to capitalise on such opportunities.

The main advantage that cash flow loans have over longer term funding is that they are quicker to obtain, even though interest rates will be higher as they are paid over a shorter period of time. Cash flow loans are usually repaid within one to six months however, repayment schedules may vary from lender to lender.

How much can I borrow with a cash flow loan?

You could borrow anywhere from £10k – £200k with a cash flow loan and in some circumstances you can receive funds in as little as 24 hours. You can make fixed monthly repayments, or even weekly or daily to make budgeting simple and there’s no fees up front or exit fees to worry about, either.

If you want to make an early repayment, you can do that without getting penalised for it as there are no early settlement penalties. The quicker you pay back, the less you end up paying in the long run.

How can I apply?

You can apply for a small business cash flow loan today and you’ll be surprised how quickly the application process is. All you need to do is fill out our online form, send us your relevant financial information and you’ll receive a decision within 24 hours. You can accept the offer and the funds will clear the next day! It’s really that simple.

Find out more about cash flow loans

Our team of finance advisers are on hand to help you access the funds that you need to maintain a healthy cash flow. With years of experience and many happy customers, we are pleased to offer a wide range of business loans of different types, to suit each need.

We are also proud to offer loans to 9 out of 10 of the business customers that apply to us for finance, having been turned away from traditional lenders. Please get in touch to find out more or complete the online application form for an instant decision.