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How to apply for Cashflow Financing

Published on 11th March 2019

For any developing SME business, maintaining and pushing beyond your bottom line is imperative. However, there may be times when you encounter a cashflow shortfall. If this happens over a sustained period without financial support in place it can threaten your business’ growth and long-term sustainability, possibly leading to insolvency. This is why applying for Cashflow Financing at the early stages of any crisis is so vital. Cashflow Financing is a unique funding package designed specifically to target and remedy your cash flow issues, by offering you access to a wide variety of business finance solutions. So, if you’re expecting or are currently suffering from a cashflow shortfall, here’s what you to apply for Cashflow Financing.

  • Will security need to be provided?
  • Will your Credit Profile be checked?
  • What documents will you need to submit?

Does Cashflow Financing require collateral?

Cashflow Financing covers a wide range of Secured and Unsecured business finance products, allowing for a range of financial situations. With products that are secured, you’re typically required to present collateral in the form of unencumbered assets such as equipment, machinery, vehicles or property, whilst some solutions may use your receivables. What this means is that if your business defaults or falls behind in the repayment scheme, the lender will have the right to seize these assets. This gives them more confidence in your commitment to repaying the loan on, especially when dispensing large lump sums. On the other hand, unsecured finance solutions don’t require you to present collateral. However, although there are a few exceptions, this usually makes these types of products harder to qualify for. Plus, some lenders may also request a verbal or written Personal Guarantee before offering you an agreement for additional reassurance.

Experiencing a cash flow shortfall? Need help covering your monthly expenses or funding essential growth projects? Apply for Cashflow Financing or learn more with Rangewell.

Will lenders ask for permission to review my business’ credit profile?

Lenders will usually ask to review your business’ credit profile and credit score. But, if your business does happen to possess a weak credit score know that lenders will not always use it against you when coming to a decision. Providing permission for lenders to inspect your credit profile is an important step as it allows them to gain a stronger understanding of your business’ financial performance. When looking at your profile, they’ll be checking to see whether you have outstanding CCJs, Arrears, Accelerated Payment Notices, and reliable history showing that you are capable of repaying your debts. If there are any issues, be upfront and let lenders know beforehand. Should they discover any problems that they weren’t made aware of beforehand, it may damage the credibility of your application. Also note that your credit score will affect the interest rate that you’re offered. Therefore, the weaker your score the more interest you’ll pay on the agreement, and vice versa.

What documents will I need to provide with my application?

As well as granting lenders permission to review your business’ credit profile, you’ll also need to provide an array of documents which will depend on your chosen finance solution. This will allow lenders to ascertain how much money you need to borrow or have advanced, your financial performance and the suitability of the agreement. So when entering your application, some of the documents you’ll need to provide could range from your latest and past bank statements, profit and loss statements, sales reports, inventory management reports, invoices, customers orders to collateral documentation. Therefore, in order to speed up your application and tell whether your chosen finance solution is appropriate, always check beforehand what documents you’ll need to provide to the lender.

Looking to apply for Cashflow Financing?

As well as creating a detailed business plan and assembling a dedicated team, you also need reliable cash flow in order to achieve a sustainable future. Yet, as you continue to operate, your business may encounter slow trading periods which could add pressure upon your working capital. This can make it harder for you to support your finances, pay staff, acquire stock or invest in your business’ development. Fortunately, there’s Cashflow Finance. So if you’re looking for a way to support your operating costs or fund essential growth projects, apply for Cashflow Financing today or find out more with Rangewell.

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