Finding the Right Cash Flow Solution for Your Small Business

Starting and running your own business in a large city like Sydney can be tough. You will need to work with wily contractors, beat the competition and attract customers all at the same time.

Cash flow financing solutions

When your business is small, cash flow becomes all-important. Even a small break in that cash flow can threaten the survival of your precious venture. To ensure that you can continue operating your small business, there are times when you need to look at cash flow financing options.

Before you take the plunge and apply for a cash flow financing option, here are some things you need to consider first.

Is my Business Profitable?

When we have our own businesses, we may end up losing objectivity. Before you put yourself in debt over your business, you need to ask yourself some really hard questions.

You need to analyse whether your business is actually profitable. If you look at your data and see that your business is doing well and that it does have a future, then a cash flow financing option to help you tide over the short term is a smart move.

However, when you look at the numbers and see that your business actually isn’t profitable and is actually failing, then it may be time to close shop. Added debt to an already struggling business may simply worsen your financial situation.

How Much Will a Cash Flow Loan Cost?

Cash flow finance need can be expensive. So, you need to think about your options and the type of loan you should take carefully. Remember, it isn’t only the interest on the loan that you will need to pay. There will be other charges too.

For example, if you take out an unsecured business loan, you will have to pay interest on the loan. Added to that, you will need to pay for the application fee, other upfront fees that the lender will outline for you, ongoing fees, default fees (if any), and late payment fees (again, if any). You will also have to pay an early repayment fee!

What Features Should You Look for in Cash Flow Finance Options?

There are a numerous finance companies in Sydney who can offer you cash flow financing, such as But each financier will offer you different terms. You need to look for terms that suit you and your business best.

So, do not sign on the dotted line with the first financier you meet. Take you time to shop around so that you can get the best deal possible.

The first thing you should do is eliminate all the financing options that do not meet your criteria. So, if you do not have any property to put up as security, then you know you cannot ask for a line of credit.

And then you need to decide whether this will be a one-off loan, or whether you should set up a revolving loan option. This decision will be based on how your business runs and whether you face fluctuations in your cash flow or not.


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