Cash
Flow Loans

A short-term commercial loan called a cash flow loan can help you get through those seasonally slower periods. A cash flow loan is a form of debt financing in which cash flow lenders borrow money, for any business rationale in exchange for the promise of future business cash flow.

For any organisation, a healthy cash flow is crucial. Cash flow financing fills in the gaps due to unanticipated circumstances like late payments. Business cash flow is the lifeblood of any business, which is why cash flow lending has become a popular way to keep your business thriving.

Having cash in the bank is what every business strives for, however, it is not uncommon for businesses to struggle to pay staff, themselves or lenders.

Business cash flow loans are designed to help bridge gaps that can occur when experiencing a delay in payment or an unexpected bill. Flexible funding options are offered to all types of business, meaning you can select the product that’s ideal for you moving forward. Having several finance products on offer, helps businesses to decide on a suitable funding product and repayment period.

How does it work?

Cash flow loans are usually unsecured, lenders will focus on the cash available in your historic bank statements and the likelihood of money being available in the future to ensure you have the affordability to make the repayments – which are usually on a daily, weekly or monthly basis. This means when the underwriter is looking at the details of the application there is less interest in business and personal assets.

When the requirement is cashflow funding, lenders like the repayments to be completed within 3-24 months as there is less risk and collateral hasn’t been put up to secure the loan.

example 1

Example:

You have your regular monthly business expenses – staff, utilities and premises need to be paid and you receive an unexpected bill that is going to eat up your available funds. Rather than not paying for your necessities, you apply for a short-term cashflow loan to ease the pressure on your finances.
As this is unsecured funding, it means you can receive approval within 24 hours and funds within 48 hours – cashflow loans can be arranged quickly to ensure the problem is fixed quickly.

Typical reasons for a cash flow loan

Commercial cash flow funding typically assists in providing working capital to maintain the viability of your everyday operations. There are many ways a cash flow loan can assist your business, whether that’s to pay rent, wages, taking on a new client, recruitment – any business rationale.

Often companies have to consider the seasonal peaks and troughs and plan ahead. It is vital to keep a constant flow of cash year-round.

You can get cash flow funding for a variety of reasons:

Advantages & Disadvantages of a cash flow loan

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Advantages

As with any business loan there will be upsides and downsides that you will need to consider. Having us search for every possible solution for you will not only save you time, you’ll also know that because of the research we’ve concluded along with our product knowledge, you will have the best facility available for your business.
With unsecured funding, finance can be arranged quickly and due to there not being collateral to secure the loan this makes cash flow funding a fast, hassle-free way to raise capital.
You don’t need to worry long-term as you won’t be paying for the loan long after you’ve used the money – repayments are usually 3-24 months.
Alternative funding solutions can provide flexible repayments to protect cash flow.

Disadvantages of franchising:

Disadvantages

With the loan being unsecured, you can expect to pay more for the advance.
A personal guarantee will need to be provided – meaning you will need to make the repayments personally if the business is unable to. If this is a concern you can request a quote for personal guarantee insurance.
Depending on the cash flow facility, you may have to pay fixed monthly repayments which can be tricky when managing cash flow.

Request a call back

How does it work?

Fill in our form​

A member of the team will be in touch to collect some basic information. This helps us understand the type of funding that would best suit your business.

We find the best funding for you

We use the information you provided to source the best funding options for you and your business using our panel of over 250 lenders.

We present your options

We’ll then present you will all of the funding options available to you and give you time to decide which one you would like to proceed with.

What are your alternative cash flow solutions?

When it comes to cash flow funding, you have options. Cash flow funding can be seen in the forms of a merchant cash advance, revolving credit facility, unsecured loan and invoice finance. We are here to help you find the right solution.

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Merchant funding

A merchant loan otherwise known as a merchant cash advance, is a short term facility that works in conjunction with your card sales. If you take card payments more frequently, the loan will be paid quicker and vice versa.
Merchant loans are a straightforward way to gain a capital loan and can be appealing due to their flexibility.
Typically you can lend 1-2.5x of your average monthly card sales, meaning you can potentially raise large amounts quickly.
As an example, if you had agreed to a 10% sweep with the lender, a £100 sale through your card machine would mean you would receive £90 and £10 would be paid towards the advance.

overdraft

Revolving Credit Facility

An overdraft facility could provide the perfect solution when looking for cash flow funding. It allows you to access capital quickly, whenever you need it.
Sometimes you need to act quickly, especially when an opportunity arises, so having a revolving credit facility may mean you sleep easier knowing you have cash reserves. Usually revolving credit facilities are 12-month terms and interest is paid on the funds you use. Once the repayments are made, the money is available to use again.

Liquid assets

Invoice Finance

Invoice finance can be used to raise money to offset unpaid invoices. Having unpaid invoices can cause cash flow issues. As a solution, you can borrow up to 95% of unpaid invoices. If customers not paying on time is holding you back, this can be an easy fix.

Business savings accounts

Unsecured business loan

Getting an unsecured business loan can be the perfect way to fill a cash flow gap. It isn’t necessary to put collateral up for the funds. Cash is paid to you quickly, so no waiting weeks or months for a decision.

What if I have bad credit?

Your credit history and credit score alone won’t be used to underwrite the loan, many factors will be considered. If your credit is bad, getting funding from the bank could be difficult. Many financing options are still available, so you can still raise the capital you require. Alternative funding could provide the solution you need to ease cash flow, purchase stock, or take on that new customer.

An underwriter will look at the strength of your company and your cash flow forecast. Taking out a cash flow loan and making the repayments on time could help raise your credit profile. The disadvantages of cash flow loans with bad credit are that you’ll typically pay higher repayment fees and interest rates and be offered shorter-term loans. Third party guarantors can sometimes help achieve approval if their credit ratings are sufficient, credit checks will be carried out on that chosen person.

How do I apply?

At Smart Funding Solutions, applying for business finance , is made simple. All you need to do is provide us with a few details and we will do the rest. We will match you with the most suitable lenders for your business and situation.

We understand you are busy and don’t always have time to talk on the phone. You can simply fill out our form and receive no obligation indicative terms back within 24 hours. You then decide if you would like to proceed or spend time thinking over the options.

You’ll need to be a limited company, sole trader or partnership with a registered office in the UK.

Why not see what’s available? Apply below and we will do the rest.

Why choose us for cash flow funding?

At Smart Funding Solutions we make it our mission to match you with the correct lender, that is going to provide the best solution for your cash flow. On our lending panel are over 250 lenders, all with a different niche, for every business type. We take the time to understand your business, the plans you have and also the potential challenges that come with running any business.

We have made it so you can receive a no-obligation quote in your inbox within 24 hours and are on hand to answer any questions you have regarding your cash flow loan.

The commercial lending market can be tricky to navigate, we can take that stress away, while you can sit back knowing we are working to find you the perfect cash flow solution.

What security will I need?

Personal guarantees will usually need to be provided, which means that if the business is unable to make the payments, you must personally make them. You can get a price on personal guarantee insurance if this is a concern.

Head over to our frequently asked questions page for more information on cash flow loans

Smart Funding Solutions are authorised and regulated by the financial conduct authority, FRN: 972740

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