Cashflow Finance is effectively products and finance types that primarily uses the strength of the business’s turnover and income to secure a loan. Let us explore what this finance types looks like in more depth:
Unsecured business loan
- An Unsecured Business Loan allows you to cover most business related finance needs you have in your business. An Unsecured Business Loan is a short term facility – usually up to a maximum of 36 months. They are defined as unsecured by the way they do not require a physical asset to secure the loan, the usually request a personal guarantee for most loans and potentially a PPSR registration against the business
- Trade finance operates as line of credit and is a form of working capital for businesses to order stock from overseas or domestic suppliers and sell those goods to Australian customers. Trade finance is a cash flow solution for your business, which allows you repay the loan when you get paid. Trade Financing is becoming an increasingly important business tool. For an Importer it means receiving initial funding in order to pay a supplier and allow time for the goods to be received, sold and turned into cash.For an Exporter it provides working capital until the overseas customer pays for the goods or services that have been delivered.
- Debtor Finance is also known as Invoice Finance or Invoice Factoring, is quite simply, a line of credit secured by the value outstanding accounts receivable.If your business supplies products or services to other businesses on standard trade credit terms, Debtor Finance may have place in your business. There are a number of variations in how the service is delivered, ranging from Confidential Invoice Discounting, Selective or Single Invoice Finance to the option of full management of accounts receivables. Debtor Finance is another form of working capital that rely’s on the strength of you customers and their ability to pay their invoice.
- Personal Loans relies primarily on the business owners personal taxable income. Personal loans can be used for a number of reasons in business such as debt consolidation, equipment purchasing it can be used for both personal use as well as business. Terms of Personal Loans can range from 3 – 7 years.
Overdraft / Line of Credit
- A Business Overdraft is one of the original products for business owners used for working capital purposes. However throughout the last few market cycles we have seen lenders required further security around the traditional overdrafts. With the unsecured Business Finance market there are more options in market, whereby your overdraft can be secured but the strength of the business.