What is Cashflow Finance?
Cash flow for a business refers to the money coming in from revenue and going out for expenses and payments. Cash flow finance, however, is a type of business financing where a lender provides an unsecured loan based on the business’s monthly cash flow.
Businesses can use cash flow finance to bridge short-term liquidity gaps. It offers a quick way to access funds and ensure the smooth continuation of operations.
Eligibility Criteria
- An active Australian Business Number (ABN)
- At least 6 months of continuous trading
- Minimum average monthly turnover of $5,000
What you should know about Cash Flow Finance
How Can You Use Cashflow Finance?
Cash flow finance can be useful in a variety of situations, including:
- Paying staff salaries
- Settling supplier bills
- Covering business development expenses
- Funding business-related investments
- Purchasing equipment
How does Cashflow Finance Work?
Cash Flow and Loan Assessment
When a business generates steady cash flow, it indicates sufficient revenue to meet financial obligations. When applying for a loan to address a financial need, lenders or finance brokers assess the company’s cash flow to determine an appropriate credit limit for short- or long-term financing.
Cash flow finance allows business owners to access funds based on expected cash inflows, with repayment schedules tailored to both historical and projected cash flows.
Features of Cash Flow Finance
- Typically unsecured
- Flexible repayment options: daily, weekly, or fortnightly to match business cash flows
- Loan terms range from 3 to 60 months
- Funds must be used for business purposes only
- Primarily designed for small and medium-sized enterprises (SMEs)
Benefits of Cash Flow Finance
Cash flow finance offers several advantages for businesses:
- Provides quick access to funds during emergencies to bridge cash flow gaps
- Allows borrowing as needed against an approved credit limit
- Offers flexible repayment options—fixed or structured—making it easier to manage payments
- Supports business growth and stability, whether for short-term or long-term needs, by maintaining a steady flow of capital
Why choose Asset Funder for business success?
Competitive
terms
We prioritise our customers’ best interests by securing business loans on the most competitive terms.
- Expert structuring and presentation of complex deals
- Supported by a team of qualified Chartered Accountants, CPAs, and experienced finance brokers
Small business specialists
With more than 15 years of experience in small business financing, we provide tailored financing solutions by connecting small businesses with a network of over 90 lenders.
Customer satisfaction
Our clients’ testimonials reflect the quality of our service. You can view their reviews to see their
experiences with us.
Clear communication
We value your time and never give false promises. Transparent and straightforward communication is at the core of everything we do.
