The lowdown on cash flow lending 2024 guide [Video]

Cash flow finance is a way for companies to borrow funds based on their expected cash flow in the short and medium terms. Cash flow finance can take several forms, but most capitalise on a business’s accounts outstanding and other working capital or assets in order to provide funding options to alleviate cash flow problems.

What types of cash flow finance are available?

Cash flow finance can take a number of forms. The best cash flow financing options for any business will always depend on its individual circumstances and the purpose and intended terms of the finance sought.

• Unsecured business loans. One of the more common ways of alleviating short-term cash flow problems is with an unsecured business loan. Without requiring any type of security, an unsecured business loan relates directly to a business’s sales history, with loan terms negotiable between the lender and borrower.
• Invoice financing. Also known as invoice discounting or factoring, invoice financingfrees up funds that are owed to a …