How to spot the perfect cash flow loan candidate
Think a cash flow loan might be right for your client? See how they measure up against our checklists.
Client checklist: Are they ready for a cash flow loan?
When you understand the benefits of cash flow loans, it’s easy to spot when it’s the right solution for your client.
- Needs funds fast.
- Cash flow and revenue projections will cover loan repayments.
- Prefers not to use a business or personal asset to secure their loan.
- Understands the repayment schedule and the total amount to be repaid.
- Wants to act on a business opportunity too good to miss.
- Committed to growing their small business.
Reasons your client might want a cash flow loan
There are as many reasons to boost cash flow as there are small businesses. Here are some reasons why your client could be a perfect fit.
- Opportunity to buy stock at a reduced price (a competitor closes down).
- Meeting demand with new equipment or skills (a new coffee machine to keep up with the morning rush).
- Expanding to add value for existing clients with a new product or service (buying a ute to add landscaping to a lawn maintenance business).
- Matching funds provided through a small business grant program (paying half the costs to establish a new digital marketing strategy).
- Investing in additional staff for big events (getting funds to hire extra employees when catering a large wedding).
- Expanding into new markets (opening a store in a new suburb with high demand for services, or jumping into e-commerce).
- Investing in a campaign to boost revenue (a local plumbing business working with a search engine marketing specialist to be found online).
- Upfront rent for a new retail space (a shopping centre pop-up stall for Valentine’s Day gifts).
Your checklist: Helping your client understand cash flow loans
Some key points to communicate to your client.
- Ideal for taking advantage of growth opportunities, such as those mentioned above.
- Fixed amount repayable – payments won’t change if interest rates rise.
- Fast turnaround – money could be in your bank account in 24 hours which is perfect for small businesses who may need to replace equipment fast.
- Less paperwork than a traditional loan from a big bank.
- No hidden fees or penalties for early repayment.
Finding a loan that fits
If you have a cash flow scenario you’d like to share, or to find out how Partnering with Prospa can benefit your business, call us today on 1300 964 808 or email [email protected]. Apply to be a Partner here. Log in to the Prospa Partner Portal here.