Business Cash Flow Loans

Consider your options for boosting your business’ cash flow by comparing loans with Savvy today.

Last updated on June 15th, 2022 at 04:49 pm by Bill Tsouvalas

Finance for boosting your business' cash flow

Most businesses have times when their normal cash flow falls just short of what’s needed, so it’s important to understand the array of options operators have at their disposal. Explore and compare business cash flow loan options with Savvy and find out more about how they work and why they might be right for your business.

What is a business cash flow loan, and how does it work?

Cash flow loans are a type of business investment loan designed to plug a temporary hole or shortfall in your business’ finances. A cash flow loan is based on the understanding that this shortfall will eventually be resolved by the normal cash flow of your business, with no need for extraordinary measures – effectively, you’re borrowing money from your expected future income.

A cash flow loan could be a specialised loan designed specifically to help with business cash flow, and some lenders have dedicated cash flow based lending specifically for this purpose. But in many cases it’s simply a more conventional type of loan obtained for the purpose of helping out with cash flow.

Cash flow loans are generally not intended to be for a large amount of funds. They’re also not intended to be a long-term loan solution going over several years. They’re a stop-gap solution to a short-term problem, and are normally intended to be paid of over a matter of months rather than becoming a long-term financial investment.

What types of business finance could act as a cash flow loan?

There are a number of common finance types that could fill the role of a cash flow loan.

  • Specialised “Cash Flow” loans – Some lenders have dedicated cash flow loans custom built and optimised for this purpose. They are generally for lower amounts ($5,000 to around $50,000). They also have relatively short loan terms – around 1-2 years at maximum.
  • Standard Unsecured business loans – Most lenders offer conventional unsecured business loans that could easily serve as cash flow based lending. These don’t require any security or deposit, are fast and easy to turn around, and can provide from $5,000 up to potentially well over $100,000 – although official the maximum amount you can borrow will depend on things like the state of your business and its’ credit history.
  • Invoice Financing – Invoice financing is a kind of alternative loan finance where you transfer a number of your outstanding invoices (representing money owed to your business by customers) over to a lender, who then pays you the majority of their value and then collects the debt from the customer themselves. In some ways, invoice financing is the perfect cash flow loan, as it’s based on bridging the gap between your expenses and getting reimbursed by your customers.
  • Merchant Cash Advance – A merchant cash advance involves a lender loaning you money, and then taking their repayments as a percentage of your cash flow over the next year. They’re also well suited for a cash flow loan, as they’re actually based on the idea of selling your future revenue for immediate finance – that’s literally how they’re defined.
  • Business Credit – Another option for short term finance to plug a cash flow hole is some form of business credit. It’s handy because it’s available at any time and you’re only charged interest for the money you’re currently using. But the interest rates are high, and overusing it can impact your business credit rating.

Compare business loans

When it comes to boosting your business’ cash flow, you should compare as many offers as you can with Savvy to ensure you lock in the best deal.

site-logos OnDeck Business Loan
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $10,000 $250,000 6 to 24
3% $0
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Lightning business loans up to $150K can be funded in as fast as 2 hours - simply provide 6 months of recent bank statements.

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site-logos Lumi Unsecured Business Loan
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $5,000 $500,000 3 to 36
2.5% $0
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Boost your business with fast hassle-free funding from Lumi. Apply online in five minutes without harming your credit score and get funds in as quickly as 24 hours. For a limited time: Business Loans with No Repayments for the first 6 weeks. T&C apply.

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site-logos Lumi Lux Rate Reducing Business Loan
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $200,000 $500,000 12 to 48
3.50% $0
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Lumi Lux™ is an innovative rate-reducing business loan that rewards customers with good repayment histories and no contractual breaches throughout their loan term by dropping interest rates by 25 basis points (0.25%) every six months

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site-logos Valiant Finance Business Loan Broker
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $5,000 $1,000,000 3 to 60
$0 $0
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Valiant is Australia’s leading business loan broker with a network of over 80+ lenders. Apply for a business loan between $5,000 and $1 million and get approved in as little as 24 hours.

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site-logos ebroker Unsecured & Secured Business Loans
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $5,000 $3,000,000 6 to 360
$0 $0
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Compare, find and match fast to over 80 bank and non-bank lenders accessing much needed working capital from a unsecured business loan.

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Disclaimer: Savvy is not advising or recommending any particular product to you. We provide general information on products for the purposes of comparison, but your personal situation or goals are not considered here. Although we try to make our comparisons as thorough as possible, we do not have information on all products on the market on our site.

You should always consult a given offer's PDS or further documentation in the process of deciding on which loan to choose, as well as seeking independent, professional advice. If you decide to apply with one of the lenders listed above via our website, you will not be dealing with Savvy; any applications or enquiries will be conducted directly with the lender offering that product.

What might I need a business cash flow loan for?

Frequently asked questions about business cash flow loans

What's the best way to compare different business cash flow loans?

The first step is to decided what kind of loan you’re opting for – Unsecured loans, business credit, and invoice financing work quite differently and it’s not easy to compare them side by side. But once you have a preferred loan type, it’s best to jump online and use a comparison website to quickly and easily compare specific loans and find the best. With Savvy you can compare a range of business loans from top Australian lenders, and quickly find the option that best suits your business.

Do business cash flow loans require security or collateral?

No, you don’t need collateral for a business cash flow loan. Some dedicated cash flow loans have an option of secured or unsecured, and the secured version offers more money and longer loan terms. But it’s not a requirement.

How quick are business cash flow loans to get?

It depends on the type of loan you’ve opted for, but there are a number of options that can be turned around in a matter of days – including some dedicated cash flow loans.

Can I get a cash flow loan if my business has bad credit?

Bad credit can make it harder, but not impossible. If your business is struggling with bad credit making loan approval difficult, there are bad credit cash flow loans available. These are a little more expensive, but they’re available to businesses with poorer-than-average credit ratings.

Do cash flow loans have good interest rates?

Again, it depends on the loan. Business credit and merchant cash advances are rather expensive as loans go. The secured version of a dedicated cash flow loan will probably be quite affordable with low interest rates.

Is there a minimum size that a cash flow loan can be?

There are a number of business cash flow loan options which can be for as little as $5,000. Business credit options often have no bottom limit whatsoever.