Cash Flow Loan

When to use a cash flow loan

A cash flow loan is ideal if you need to get cash into the business quickly to cover a temporary shortfall. Cash flow problems can happen for all sorts of reasons including a downturn in turnover for a short time or unexpected expenses. This can leave a strong business struggling to pay daily essentials including bills, rent and payroll.

In particular, seasonal businesses may require cash flow loans from time to time. For businesses affected by unexpected events beyond their control, Covid19 is a great example, a cash flow loan can provide much needed liquidity until the cash starts to come in again.

So if your cash flow dips at certain times of the year or is just weaker than normal, a cash flow loan may be the right solution.

However a cash flow loan isn’t just for day to day tasks. You can also use this kind of loan for business improvements that may need doing immediately such as:

  • Staff training
  • Recruitment
  • New company website
  • Office extension or a new premises

How cash flow loans work

When you apply for a cash flow loan, as long as you are approved, you will receive the cash up-front with a plan of monthly repayments.

Cash flow loans are short term loans.

There is no security is required on a cash flow loan so there is no risk of losing valuable businesses assets. However you may be required to provide a guarantor who will be liable for the payments should the business be unable to make the repayments.

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