At ScotPac, we specialise in providing tailored cash flow loans to small and medium-sized businesses. These loans are designed to fuel growth, cover cash flow gaps, ensure sustainability during market fluctuations, or provide the funds needed to capitalise on expansion opportunities.

To help you decide whether a cash flow loan is right for your business, we’ve put together this handy guide. For tailored advice to suit your business needs, be sure to contact us today.

What is a Cash Flow Loan?

Cash flow loans are a vital financial solution, particularly for small businesses. They offer a funding lifeline when other traditional financing options may not be suitable – for example, when a small business is ineligible for a bank loan.

Small business cash flow loans are designed to provide fast access to working capital and are based on a business’s projected future revenue, rather than on physical assets or creditworthiness.

A cash flow loan is a type of unsecured borrowing primarily used for day-to-day operational expenses incurred by a small business. Enterprises can use a cash flow loan to purchase new inventory, meet payroll, pay rent or ensure they have the cash flow for other operational expenses.

A small business cash flow loan allows companies with limited or subpar credit history or assets to access the working capital they need.

Advantages of Small Business Cash Flow Loans

Did you know that around 40% of small and medium sized businesses seek funding to maintain operations and drive growth? When you consider the advantages of small business cash flow loans it’s easy to see why.

No security

As mentioned above, no physical collateral is required to qualify for a small business cash flow loan.  Traditional secured loans from financial institutions like banks generally require collateral, such as property, to minimise risk in case of default.

With ScotPac, this isn’t the case. We provide cash flow loans to small businesses based on their trade history and projected monthly turnover, enabling more businesses to access the funds they need to succeed.

Fast approval

Our fully online application process for cash flow loans takes as little as 5 minutes to complete. Once submitted, our assessors will process your application as quickly as possible, and upon approval, you can receive the funding you need within 24 hours.

When you are a small business and have cash flow management problems, having access to reliable and almost instant funding can be crucial.

Flexible terms

The ScotPac lending specialists work with our clients – as partners – to structure repayment terms of the cash flow loan to suit their revenue cycle and align with their cash flow patterns.

Our customisable solutions are designed to allow us to say ‘yes’: Yes, to ensure you receive the working capital you need; Yes, to ensure your business can succeed and grow.

Eligibility criteria

As mentioned earlier, traditional bank loans often have stricter eligibility criteria compared to a small business cash flow loan from ScotPac. Businesses with an average monthly turnover of $10,000 can apply for up to 150% of that amount without needing collateral or an exceptional credit history.

Considering that over 80% of small businesses are concerned about their ability to access finance solutions from traditional lenders, it’s little wonder why more and more businesses are turning to providers such as ScotPac.

Cash Flow Solutions with ScotPac

The right cash flow loan or finance solution depends on your business’s needs and your preferences.

Invoice Finance

Invoice Finance allows businesses to access up to 80% of the capital otherwise locked in unpaid invoices Instead of waiting for the full payment term – often 30 days or more – Invoice Finance provides a cash advance to meet operational needs and take advantage of market opportunities.

Since outstanding invoices serve as collateral, business owners don’t need to provide additional security. Plus, with a finance facility that grows with your needs, it can scale as your business expands.

Trade Finance

A Trade Finance cash flow solution helps businesses set up prosperous business relationships with suppliers or customers overseas. With the right customised finance solution, your business can fund inventory purchases, bridge the gap in time between supplier payment and customer receipt, and build strong, trusted trade relationships.

As with all of our finance solutions, your Trade Finance facility will be customised to suit your needs and support your growing international or domestic trade.

Small Business Loan

A small business cash flow loan from ScotPac provides fast funding when you need it. If you work in an industry subject to seasonal fluctuations in demand, a small business cash flow solution can help you effectively manage your cash flow throughout the year.

The flexible terms ensure that your finance facility provides all the support you need to meet unexpected operational expenses, fund expansions of your team, and take advantage of unique opportunities presented in the market.

How a ScotPac Cash Flow Loan Can Help Your Business

For over 35 years, the ScotPac team has provided expert finance services to small and medium-sized enterprises across New Zealand and Australia. In fact, we currently support over 8,500 businesses in accessing tailored cash flow solutions to fuel sustainable success.

To find out more about our small business cash flow loan solutions, get in touch with our team today.