A Cash Flow Facility allows a business to borrow money as needed for funding working capital needs and continuing operations. A facility that operates like a line of credit is especially helpful during times of revenue fluctuations since bills and unexpected expenses can be paid by drawing from a fund.
This can then be used by business owners for a range of purposes, particularly when they need a quick cash flow injection. It’s a form of business finance that works as a cash advance and helps to bridge that gap in your cash flow. With a Cash Flow Facility, you can cover costs immediately while waiting for an expected cash boost.
5 Ways a Cash Flow Facility can help your business
- Fast access to finance to boost cash flow
- Provides a buffer in between receiving payments from customers
- Gives options of flexible repayment options
- Can prevent financial loss for seasonal businesses needing to purchase stock mid-season to make a profit
- Allows you to buy out a difficult partner
- Allows you to invest in stock, and equipment, train staff, or build inventory you might need or would like to scale with.
Common Uses of Cash Flow Facility
- Helpful for quick access to cash for a down payment.
- Purchasing new equipment that is priced above the amount of cash on hand available to a business
- Covering essential operational costs (such as salaries) during temporary dips in cash flow
- If you’re a seasonal business, it can help sustain cash flow during low season
- staff development and training
- Stock and inventory
- Scaling a business
Apply for Bridging Finance with Lula
Lula has solutions that offer your business a cash flow boost when you need access to funds sooner rather than later. We offer a Cash Flow Facility that is unsecured capital that is easily accessible, and fast. We also offer the option to settle early without having to worry about penalty fees. Get in touch to find out how we can help you.
