A cash flow loan is a type of unsecured loan used to help businesses manage their cash flow. The loan is usually reliant on the future cash flows of the company to ensure repayment of the loan.
The funds raised by cash flow funding are generally used to cover the daily operations of the business such as paying bills, rent, training employees and staff wages.
How does Cashflow funding work?
Cash flow financing uses the generated cash flow as a means to pay back the loan rather than the physical assets of a business.
Cash flow funding is a good option for seasonal or businesses that find themselves in short supply of working capital for periods of the year or businesses that do not have a many physical assets. Whilst sales or cash flow may fluctuate, and decline during certain periods of the year, the business costs remain consistent, and a cash flow loan can help the business maintain a steady balance book.
Need help? Call us on 0191 410 4776
Purchasing Assets at Auction: What You Need to KnowHave you ever considered buying business assets at auction? Despite the common portrayal of auctions as confusing and chaotic, they can actually be a very organized and beneficial way to acquire diverse products
Diversifying Farming Businesses for Growth and Revenue StreamsFarming is an essential industry in the UK, with approximately 149,000 farm businesses driving the economy. Despite its crucial role, farming has encountered various challenges over the years, prompting farmers and farm owners to explore innovative ideas to mitigate risks, generate revenue streams and diversifying farming businesses.
Centre Court: Tennis Stars and Their CarsMany of the world’s best tennis players are car enthusiasts, with fleets of luxury cars that’d put the world’s biggest petrolheads to shame. Here, we take a look at some of the car collections of some of tennis’s most famous players.