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5 Reasons To Get A Cash Flow Loan For Your Business

A cash flow loan is a loan designed for the proactive business owner. The idea behind these loans is to provide your business with a cash influx for various possibilities to help grow or spur growth in your business. Here are 5 reasons to get a cash flow loan for your business.

GET WORKING CAPITAL

If your business usually only receives money towards the end of the month but you still need money for the day-to-day, then a cash flow loan is essential. You’ve got suppliers to pay, daily items to purchase, and a business to operate. A cash flow loan allows you to settle all these necessary bills while waiting for payments.

“When you need them most, suppliers will prioritise customers who pay on time, so it’s really important to take care of those supplier relationships,” says David Crook, Managing Director at Nero FInancial.

“A cash flow loan ensures you have money on hand to pay your bills as needed, avoiding potential disaster and minimising risk,” he says.

BUY DISCOUNTED INVENTORY

Any business that sells a product or a service requires inventory. Whether that inventory is to resell, create products, or provide a service, it’s necessary for whatever purpose it serves. Now imagine the stock you need is available at discounted prices for a limited time? Why wouldn’t you jump on that opportunity?

By getting a cash flow loan for your business, you’re saving money and increasing your profit margin. There is no need to let a good deal pass you by. A cash flow loan is a wise investment if it increases your bottom line.

HIRE STAFF DURING GROWTH

Your business is growing, and you need additional staff to meet the demand. However, seeing the financial return of growth can slightly lag behind growth in motion. Yes, you’re getting more orders, selling more products, or gaining new clients. However, you still need to deliver the product or service before the transaction is complete.

With fewer people, you risk achieving this newfound growth. Waiting longer than necessary jeopardises your business’s growth and leads to stagnation and a poor reputation. A cash flow loan means getting more people on the payroll while increasing revenues and sustaining growth.

MEET SEASONAL DEMANDS

There are numerous times throughout the year when sales pick up around a seasonal event. Take Christmas as the most prominent example of a time of year when seasonal demand spikes. Most businesses prepare for the season by hiring new employees, increasing supplies and in some cases, refreshing their space to accommodate an influx of new orders.

If you’re not in a position to meet seasonal demands because of low turnover from the quieter pre-season months, you need to make a plan. That plan, of course, is a cash flow loan. You cannot enter the season unprepared. This is your chance to capitalise on the increased demand, so don’t waste the opportunity.

MARKET TO SPUR GROWTH

Now and then, you’ll find your business has plateaued slightly from moments of growth. This is extremely common, but it’s important not to become complacent and idle during these plateaus. You need to take matters into your own hands and spur growth through marketing your business.

Marketing can be an expense you might not be able to swing, considering the low growth you’ve been experiencing. However, it’s essential to understand that inaction is not an option. With a cash flow loan, you can go out there and market your business to spur growth and thus, stimulate organic cash flow.

Has all this talk piqued your interest? Contact Nero Financial today or call 1300 025 949 to find out how we can help get a cash flow loan customised for your business.