Cashflow Finance is effectively products and finance types that primarily are assessed on the turnover and income of the business to secure a loan. Options include:
Unsecured business loan
An Unsecured Business Loan is generally a short term facility – usually up to a maximum of 36 months. They are defined as unsecured, they do not require property as security, they usually require a GSA (General Security Agreement) from the business and personal guarantees from directors.
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. 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, and is a line of credit secured by the value outstanding of accounts receivable. There are a number of variations in how the service is delivered, ranging from:
Overdraft / Line of Credit
A Business Overdraft is the traditional cashflow funding option, however this product is rarely offered by banks now and is subject to annual review and performance covenants, unless secured by real estate.