Why is Cashflow Financing the best option for your business?Published on 4th May 2018
Although running your own business can be an exciting endeavour, it’s doesn’t come without its challenges. In order to ensure that your business is able to support its operating costs and grow, you must ensure a strong and reliable cash flow each month. However, that isn’t always a simple matter to achieve, especially during emergencies or slow trading periods. This is where Cashflow Financing can help. By applying for Cashflow Financing you could receive access to the funds you need to carry and support your business, even in the most trying of times. So if you’re experiencing cash flow difficulties or expect to do so in the near future, these are just some of the reasons for why you should consider applying for Cashflow Financing, including:
- Access to a range of finance solutions
- Access to quick cash
- Suitable for a number of purposes
- Suitable for a variety of financial situations
What solutions are available?
One reason to apply for Cashflow Financing is that of the sheer range of finance solutions available. By choosing to make use of this package you could gain access to products which include Secured and Unsecured Business Loans, Invoice Financing, Overdraft Replacement, Merchant Cash Advance, Business Revenue Advance, Working Capital Finance and Asset Refinance. However, because each of these products works with your business in its own unique way, it’s essential that you fully understand how each operates before placing an application. This will help to ensure that you receive an agreement that’s suitable for how your business operates and is cost-effective.
How much can I borrow and how quickly?
This depends on the type of product that you’ve applied for and how the funding is calculated. Whilst Business Loans offer up to a maximum sum, many of the products that are on offer don’t carry any lending limits other than what the lender is willing or able to afford. However, in order to decide how much funding to provide, the lender will look at factors such as past sales, unpaid invoices or the amount of equity held in your unencumbered assets. Plus, depending on your chosen finance solution and the complexity of the request, an agreement could be established in as little as 48 hours.
What can Cashflow Financing be used for?
Many of the products available through applying for Cashflow Financing possess few or no usage restrictions. This helps give you the freedom to fund anything from day-to-day operating costs, outstanding tax and utility bills, unexpected payment demands, refurbishments, and renovations to emergency situations in order to support and reinforce your business’ cashflow. So if you’re looking to relieve the strain on your finances during slow trading periods, no matter how trying it maybe, applying for Cashflow Financing could offer you the confidence and means to do so.
What do I need to qualify for Cashflow Financing?
Because Cashflow Financing covers a wide range of business finance solutions, this package is able to support a variety of financial situations. First, you’ll need to decide whether you want to use a secured or unsecured finance product. With a secured product, you’ll need to provide collateral in the form of unencumbered equipment, machinery, vehicles or property. A few solutions may even use your receivables. Although this helps to reinforce lender confidence and earn you a lower interest rate, this does mean putting your assets at risk of repossession should your business default. Meanwhile, unsecured solutions don’t require you to provide security. However, unsecured solutions expose lenders to a greater amount of risk, causing them to charge a higher amount of interest or request a Personal Guarantee.
Many lenders will ask to review your personal and business credit profile. Although it won’t always be used against you, it will enable lenders to assess how well your business is performing and decide how much interest to apply. As such, lenders check whether you have any CCJs, Accelerated Payment Notices, Arrears, existing debt and a history of resolving debt on time. If there are any issues then this may weaken the strength of your credit score and result in a higher interest rate offered, and vice versa.
In addition, you’ll also need to submit a number of crucial documents with your application. As well as proof of identity, examples of documents you may need to provide include past and latest bank statements, profit and loss statements, sales reports, collateral documentation, invoices and tax returns. These should be listed in the documents provided by the lender. So in order to ensure that your application runs as smoothly as possible, check what documents are required and prepare them in a timely manner.
Does your business need help supporting its cashflow?
At the heart of any successful business lies strong cashflow. However, if your business’ cashflow slows for any reason this can cause issues that may affect its ability to operate and remain sustainable, which will potentially only get worse the longer it’s left. That is why taking action as soon as you’re aware of any issues is crucial. However, with so many different products to choose from, identifying which business finance solution to apply for becomes an obstacle in itself. Fortunately, we’ve already done the hard work for you. So if you’re expecting to face challenges to your cash flow, you can apply for Cashflow Financing today or simply find out more with Rangewell.
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