The most appropriate cash flow investment option for your business will depend on your financial circumstances. For example, whether:
- You have ongoing cash flow financing needs (where a line of credit, overdraft facility or business credit card may be suitable options)
- Your needs are one-off (where an unsecured business loan may be an option)
- You have a significant number of debtors (and invoice financing is an option)
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The most appropriate cash flow investment option for your business will depend on your financial circumstances. For example, whether:
- You have ongoing cash flow financing needs (where a line of credit, overdraft facility or business credit card may be suitable options)
- Your needs are one-off (where an unsecured business loan may be an option)
- You have a significant number of debtors (and invoice financing is an option)
It will also depend on the cost of the financing option (which includes the interest rate plus any other fees or charges). It’s also important to consider whether your business has genuine cash flow problems and is otherwise viable and profitable if you can obtain cash flow finance.
If your business isn’t profitable, cash flow financing won’t be an ongoing solution. You will just temporarily mask deeper financial problems and get your business deeper into debt.
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