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Understanding cash flow lending

For Australian small businesses going through a seasonal downturn, cash flow lending could be an option to look into. We’ve summed up Prospa’s solution for a faster, smoother approach to business lending.

What is cash flow lending? 

Cash flow lending often comes in the form of a short-term loan that small business owners might use for a business purpose. This could mean covering a temporary shortfall for paying wages, investing in new equipment or taking up a business opportunity that’s too good to miss. 

How is cash flow lending different to traditional bank loans? 

Traditional bank loans require certain lending criteria which may include checking the borrower’s cash flow statements and business plans. Bank loans also commonly rely on securing the loan with an asset. So if a business owner puts up a vehicle or their family home as security, that asset may be at risk. Traditional bank loans can also take longer to process and may not be suitable if funds are needed quickly. 

When a small business needs a cash flow boost, it often needs it fast. That’s where a Prospa Line of Credit (LOC) can be useful. A Prospa Business Line of Credit offers ongoing access to funds to help small businesses confidently manage cash flow fluctuations. It’s designed to be faster, simpler, tailored to small business, and clear.

Need ongoing access to funds, quickly? See how a Prospa Line of Credit could help keep your business moving forward. 

Faster

LOC applications can take 10 minutes, and a decision can often be made the same or next business day. 

Simpler 

Prospa’s LOC often requires less paperwork than a traditional loan, making for a smooth, hassle-free application process. 

Tailored 

Prospa’s LOC repayments are payable weekly but small business owners can make additional principal repayments at any time to suit the business’s cash flow cycle. 

Clear

LOC funds can be used and reused as often a business owner chooses during the 24-month renewable term. Plus, interest is only paid on the funds used! 

Stay on top of your incomings and outgoings with our Cash Flow Forecast Calculator

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The information in this post is provided for general information only and does not take into account your personal situation. Nothing contained in this post constitutes advice or an endorsement or recommendation of any kind by Prospa. Any links to third party websites are strictly for informational purposes only. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information as at the date of publication, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information for any reason, including due to the passage of time, or any loss or damage suffered by any person directly or indirectly through relying on this information.

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