When it comes to running a business, cash flow is key and can be the difference between successfully running your business and being unable to deliver goods and services for paying customers.
Our cash flow specialists can help you access funds for your business, so you can get back to running your business as usual.
01What is cash flow lending?
Cash flow lending is a type of lending that allows a borrower to access funds based on their projected cash flow instead of collateral or assets. This is particularly useful for businesses with strong cash flow but limited tangible assets such as service-based businesses and start-ups.
For instance, if your business provides a service, you might have a delay or gap between the time you are rendering the service and when the customer pays for the service. In the meantime, you'll need materials, inventory, and labour, all of which need to be paid for before the customer pays. Cash flow lending closes the gap and allows you to get the materials you need to provide your services.
02Cash flow lending options
- An overdraft facility allows you to pay for materials without overdrawing your accounts or leaving payments dishonoured.
- Invoice financing allows you to pay invoices upfront before your customer pays you.
- Establishing a business line of credit, and more.
The SWB Finance Specialists can help you determine which funding options suit your business needs best.
03Who is cash flow lending for?
- Service-based businesses with payment gaps between work and invoicing
- Start-ups and growing businesses with strong revenue but few hard assets
- Seasonal businesses managing peaks and troughs in income
- Businesses funding inventory, materials or labour ahead of customer payment
