Cash Flow Lending
- Home
- Cash Flow Lending
Cash Flow Lending
- Home
- Cash Flow Lending
Talk to our finance team
Talk to Insurance Time experts and ask questions before you finalize your plans or if you need help with our services.
Contact Info
0431 170 021
info@fgsfinance.com.au
15 Abbeywood Street Taigum QLD 4018
Cash flow lending is a way to get a loan based mainly on how much money a borrower brings in, instead of relying on traditional collateral like assets or property. This type of lending is common in many business situations, especially for companies that don’t have a lot of valuable assets to use as collateral.
Cash Flow Review
The lender looks at the borrower’s past and expected cash flows. This involves reviewing the company’s income statements, balance sheets, and cash flow statements to see if it can generate enough cash to pay back the loan.
Risk Assessment
Lenders evaluate the risk of a borrower’s cash flow support by looking at factors like cash flow stability, industry trends, market conditions, and the overall financial health of the borrower.
Loan Setup
The lender creates the loan based on cash flow and risk, deciding the loan amount, interest rate, repayment schedule, and other important details.
Tracking
Lenders often check the borrower’s cash flow during the loan term to make sure the cash flow landing company can pay back the loan. This may include looking at financial statements, visiting the site, or asking the borrower for more information.
Payback
The borrower pays back the loan based on agreed terms, usually through regular payments. Repayments may be scheduled to match the company’s cash flow, such as monthly, quarterly, or semi-annually.
Cash flow lending is often used for different needs, including working capital, expansion, acquisitions, and refinancing debt. It’s especially helpful for companies with stable cash flows but few assets to use as collateral.
However, because cash flow lending depends on the borrower’s ability to generate cash, it poses higher risks for lenders than collateral-based lending. As a result, lenders may charge higher interest rates and set stricter terms to reduce these risks.
Find 40 lenders all in one spot.
