Flexible Cashflow Lending

Balancing cash flow is a challenge for many businesses big or small, even with the best laid plans businesses can often hit bumps in the road that can leave firms in a precarious situation. Sometimes it can take weeks for mainstream lenders to agree to a loan, this is where cash flow lending comes into its own, short term lending to get cash fast to keep things flowing as they should.

Flexible credit line also known as revolving cash facility is a short-term financing solution for active businesses. The finance is very similar to a bank account overdraft, lending parameters are between £1000 and £150,000 the amount of lending is largely based on the applicant’s requirements and lenders criteria. Applicants will only ever pay interest on money drawn from the account offering flexibility to business owners and avoidance of unnecessary interest payments. Knowing the cash is there when they need it without the worry of huge interest payments on top.

Flexible cash flow lending offers applicants a quick decision and is usually assessed within a couple of days, unlike other financing applications which can takes weeks or even months to arrange.

The lending provides business owners with a short-term financing option to allow a growing business to run smoothly and iron out unexpected costs or help with necessary costs to grow, offering many a buffer to manage the daily cash flow challenges businesses face. The lending is ideal for buying stock, paying VAT/tax bills or helping pay for staffing, all of which are needed when taking a business to the next step.

Cash flow lending is available for companies and sole traders, regardless of whether the company is well established or a newly established start-ups (3 months trading required), there are many solutions for all. Lending is capped at £150,000 and interest is only ever changed on monies drawn. The charges are always clear and transparent with funds often available almost immediately. The financing term is usually 12-24 months at which point the loan would need to be repaid.

Cash flow-based lending allows individuals or companies to borrow money based on projected future cash flows of a company, allowing a business to grow. Credit ratings are important as are historical cash flows, cash flow lending does not require the borrower to have physical assets in their business to use as collateral, the advantage being that obtaining financing is much quicker as collateral appraisal isn’t necessary.

Institutions underwrite cash flow loans by determining credit capacity typically they will use a company’s earnings before interest, taxes and depreciation along with a credit multiplier to calculate this decision and cash flow lending is generally a good option for companies that maintain high margins on their balance sheets or lack enough in assets to offer as collateral.

  • Available to companies of all sizes including sole traders
  • Ideal for loans between £1000-£150,000
  • Available to established companies or newly established start-ups (3 months trading required)
  • Interest is only charged on monies drawn
  • Funds available quickly
  • Lending can be based on future cash flow projections
  • No physical assets required
  • Flexible credit