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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.

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