Use Cases

Cash Flow Loans & Financing

Cash flow is critical for businesses. Companies need cash to cover things like payroll, purchase inventory, pay invoices, and cover normal operational expenses. Business cash flows loans help companies when they need it the most.

What Are Cash Flow Loans?

Cash flow loans are a type of lending product that’s not backed by collateral but is instead determined by past and future cash flow projections. Because you’re not using tangible items for collateral, some lending companies will give approvals within hours.

How Cash Flow Loans Work

Companies get a cash flow loan for many different reasons. These loans work by increasing the amount of money coming into the business which can lead to greater gains in a shorter amount of time. Some businesses also use them to cover expenses in emergencies.

Use Cases

How To Use a Cash Flow Loan

Businesses find a cash flow lender for many different reasons. These loans have flexible options that allow companies to get through slow seasons and gear up for busy times as well. Here are some of the ways to use a cash flow loan.

Grow Your Business

Cash flow is essential to grow a business. With cash flow loans for small business needs, even startups can get the capital necessary to hire staff, pay for marketing, and expand operations.

Cover Expenses

Ever wonder how businesses pay for more inventory and cover the costs of running a business? A cash flow loan can help.

Hire Employees

Get people working in your business, so you can work on the important task of growing and leading. A cash flow loan gives you the resources you need to hire employees.

Why Apply for a Cash Flow Loan?

Manage Peak Periods & Seasonal Slowdowns

Every business has a natural ebb and flow to income but has year-round expenses to cover. Getting small business cash flow loans helps you better navigate seasonal changes.

The Opportunity to Buy Inventory

When you need more inventory to get ready for the busy season or you want to add new products, a cash flow loan is the perfect choice to help you buy inventory.

Make Sure the Necessary Tools Are Paid For

Business tools can range from technology to the things needed for an HVAC business. Cash flow loans ensure these essential tools care paid for.

Minimum Eligibility Requirements

Getting business loans based on cash flow requires a few things. You’ll need to prove your time in business and your past revenue. Here’s what to expect.

Cash Flow Loans FAQ

Why Do Lenders Look at Cash Flow?

Because cash flow loans are not backed by collateral, lenders need to be sure you have the cash flow to warrant a loan. It protects them and their interests.

Are Cash Flow Loans Secured?

Cash flow loans are not secured. Lenders instead rely on your business’s revenue and cash flow history to make a lending determination.

What Is The Difference Between a Cash Flow Loan And an Asset Based Loan?
A cash flow loan is an unsecured loan whereas an asset based loan is a type of secured loan. Secured loans use company assets to back the amount of the loan.
What is an Example of a Cash Flow Loan?

A cash flow loan can be a line of credit that businesses can borrow against to help cover cash flow deficits during slow times. For instance, in retail, the holidays are the busiest times of the year, however, stores need the cash flow to purchase inventory and pay workers before the big sales come during the holidays.

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