Cash Flow Loans - Business Finance

by : Steve c clark

Regular cash flow is the life line of every business. Lack of cash can prove to be fatal for a business firm. Cash flow loans helps businessmen maintain regular cash flow in their business. It is especially very beneficial for businessmen who can't maintain cash flow due to one reason or other.

Cash flow loans can be used to meet any of your business related needs like expanding business, purchasing equipments, stationary, starting a new venture etc. If you have a valid reason you can apply for a cash flow loan. People having bad credit history like arrears, defaults, CCJ's, IVA are also eligible to avail cash flow loans, but the interest rate is a bit higher for them compared to good credit borrowers. Lenders charge high interest rate to minimize the risk factor.
Cash flow loans can be divided into two parts namely, secured cash flow loans and unsecured cash flow loans. While secured cash flow loans require collateral to be placed against the loan amount, unsecured cash flow loans can be availed without placing any security. Secured cash flow loans carry lower interest rate and flexible repayment duration compared to unsecured cash flow loans. Unsecured cash flow loans can be beneficial if you don't want to risk your property in order to avail a loan. Cash flow loans are basically short term loans with short repayment duration. The loan amount that can be availed with cash flow loans ranges form ?1,000 to ? 25000. The loan amount depends upon various factors like credit history, repayment ability, income etc of the borrower. The repayment duration of cash flow loans ranges from 1 - 10 years. Being short term in nature, cash flow loans carry slightly higher interest rate compared to other loans.
Cash flow loans get approved in very short time and the loan amount is transferred to your account within few hours of approval of loan. Cash flow loans carry high rate of interest but thanks to the competition prevailing in the market one can easily avail them at reasonable interest rate. Cash flow loans are cheaper than long term loans because you have to pay the interest rate for short period of time. With cash flow loans you can easily avail good amount of money to meet all the requirements of your business.