Taking out a loan to improve cash flow is however one great, straightforward way to go about getting the cash you need.
A business loan is generally subject to lending criteria based on your credit score and your ability to meet the repayment schedule.
The rates for a cash flow loan can vary depending on a few factors, including how long you want to borrow the cash for, how much you want to borrow and the financial standings of your business as it is today.
More often than not, businesses underestimate the need for cash flow forecasts and many fledgling companies fail to understand the strain put upon cash flow when expanding a business.
To say that cash flow is an important consideration when aiming for growth would be a huge understatement. Whether you're launching a new product, hiring more staff or fulfilling a large order, you have to do a serious assessment of your cashflow and projected earnings to make sure you're making the right move.
That said, if there's an opportunity you simply can't turn down which will cause a dent to your short-term cashflow, then a loan is a wise move.
When getting in touch with a lender like us, make sure you've got a clear plan in place to invest and repay.
When compiling your business plan and approaching a lender you must have an understanding of what is your biggest stream of revenue (what's selling and what's not).
A few things to consider
One of the biggest mistakes business owners make is taking out a loan to take a big opportunity, it paying off and then not having the staff to deal with the new workload, so be sure to factor that into account as well.
Another common pitfall is that you might take out a loan, take the new opportunity in the market, have enough staff in place to deal with the workload, but they aren't well trained enough to deal with the new type of customer coming in or extra workload.
Very often companies are underfunded for rapid growth and try to grow without the required cash flow (which is why you might come to us for a loan).
If you'd like some advice on whether or not a cash flow loan (or any other kind of finance for that matter) is right for you, don't hesitate to get in touch and one of our account managers will be more than happy to help.
Otherwise, if you're ready to apply, click here to get started.
