Cash flow financing options
Lines of credit
A business line of credit is similar to a business credit card, except that it’s secured by a business asset to lower the lender’s risk (and the interest rate). Commercial or residential property is the preferred form of security of most lenders.
A business line of credit allows a business to automatically access loan funds up to a pre-set limit to help overcome any cash flow issues. Interest is charged on any credit provided.
An overdraft facility is a cash flow financing option that is attached to a business bank account. It allows funds to be withdrawn even if there are no funds in the account, up to a pre-set overdraft limit. Interest is charged on any overdrawn funds.
Invoice financing (also known as invoice factoring) allows a business to immediately access money that is owing to them from their customers. Some businesses extend credit accounts to their customers that give them a certain time to pay for products or services (for example, 30-day accounts).
If you have this business model and you have cash flow issues, you may be able to sell your invoices to specialist lenders or factoring companies to help you overcome any cash flow issues.
Unsecured business loans
Unsecured business loans are loans that are approved without any collateral security needing to be provided. However, it’s important to understand that these types of loans have higher interest rates than secured loans.
Business credit cards
Business credit cards are another cash flow financing option, though they can have high-interest rates.
How we can help
Choosing the most appropriate cash flow financing option for your business is a crucial decision if you have cash flow issues.
At ARG Finance, our experienced team of asset finance brokers can help you to find the right cash flow financing solution. We’ll take the time to understand your needs before recommending a lender and cash flow finance option for you.
Contact us today to find out how you can overcome cash flow financing issues that you may have with your business!