Our team of brokers can provide healthcare professionals with the cashflow they need to to achieve their business goals. We understand that time is critical, so we are here to make the process as smooth as possible for you.
Cashflow finance is a great finance alternative for your business, especially if you require working capital to help finance the growth of your business. Cashflow finance means injecting immediate cash into your business, allowing you to continue with your growth and operations without delay.
Cashflow finance can take several forms, however, when it comes to choosing the right finance option for your business it’s important to speak with a finance broker as every business will have different needs. To help you get started with your research we have outlined the main cashflow options below.
Bank Overdraft
A bank overdraft is a loan, with interest payable on the outstanding balance at any time. This type of finance option is mostly used to manage the ongoing cash flow fluctuations of business.
Pros: The pros of a bank overdraft is that it is one of the most easily arranged finance solutions for a business. Another benefit is that you only have to pay interest on the portion that you use, not the entire loan amount.
Cons: The interest rates of a business overdraft can be higher than business loan interest rates, so it’s definitely worth weighing up your options before you commit to this finance option. Another con to a business overdraft is that the bank has the power to recall an overdraft facility with little to no warning.
Unsecured Business loans
Unsecured business loans are a very common way to solve cash flow problems for a lot of businesses. You can usually borrow anywhere between $1,000 to $1,000,000 with an unsecured loan, however, the amount you can borrow will most likely depend on your monthly revenue.
Pros: The benefit of this finance option is that they don’t require asset security such as personal property (your home) or commercial property.
Cons: Unfortunately, there are disadvantages to an unsecured loan, including, higher rates and fees and lower borrowing capacity as that will be dependent on your monthly revenue.
Invoice Finance
Invoice financing is another common finance option for a lot of businesses. It’s a type of loan with reduced risk as it’s secured against outstanding invoices. Invoice financing is made up of two areas, invoice factoring and invoice discounting.
Invoice discounting means you can select certain invoices, whereas factoring invoice means the finance company has full access to your invoice ledger and will collect the debt when they’re due.
Pros: The benefit of invoice finance is that there are no interest payments or asset requirements.
Cons: With invoice finance, the disadvantages include, only being able to borrow up to the value of your invoices.
Ready to get started?
If you’re unsure what option is right for you, contact our team of finance specialists from Enrich Finance to discuss your unique needs. Get in touch with our team today on 03 8375 9627 or 0402 182 855.