If cash flow troubles are keeping you awake at night, we might have the solution. A year after The Reserve Bank of Australia (RBA) started raising interest rates, people are starting to feel the pinch, making cash flow a real struggle for many business owners.
While it’s true, Strive Financial lends to small business owners facing temporary cash flow issues all the time, we’re seeing people who’ve never had to deal with this problem before. That’s why we wanted to share some insight into why cash flow is so important for your business – and how we can help if you’ve hit a cash flow snag.
What is cash flow?
Cash flow is the volume of money flowing in and out of your business at any particular moment, offering a glimpse into how your business is doing at any given time. Your cash flow is more precise when calculated at recurring intervals, which is why most businesses will track their cash flow monthly. Did you know you can be turning a profit while being cash flow negative? And in case you’re wondering, cash flow negative is when there’s more money going out than in, and cash flow positive is the opposite. Understandably, the preference is to be cash flow positive.
Why does cash flow become a problem?
On the surface, cash flow becomes a problem when people don’t pay on time. But it goes deeper than that. Let’s say you’re a builder and, as you’re almost finished with a current project, you bid for a new contract. You’re successful and win the new job. Congrats! However, just as you’re popping the champagne corks, your current project stalls. Now this does happen and you have contingencies in place. Nevertheless, this stall is likely to be just long enough to ruin all your plans as you were counting on the money from this project to set up for the new contract. Almost instantly, your cash flow dries up. Not only are you dealing with a stalled project, but you’re also staring down the barrel of having to withdraw from the new project. That means there’s no money coming in now and there won’t be any coming in down the track either.You have to find money somewhere but the only thing you have is equity in is your home. And you’re not selling your family home.
Bridging finance is the solution to your cash flow troubles
Strive Financial has entered the chat. And tucked away in our trouble-shooting toolbox is a bridging loan which means you don’t have to sell your family home, you just have to use it as security. How does it work?
- Apply for a bridging loan with Strive Financial. We offer short term loans from $20,000 to $3,000,000 with repayment terms from one month to 36 months.
- You use the funds to set yourself up for the new contract.
- When the current project finishes, you repay your Strive Financial loan.
- And that’s it!
How fast can we finance you?
How does within 24 hours sound? Yep, that’s just one more sleep – except you’ll be sleeping soundly because your cash flow problem has just been solved. Don’t just dream about no cash flows issues. Make that dream a reality and contact us today!
When it comes to business, cashflow is critical to success. This means having access to cash when you need it to buy stock, pay employees and cover regular bills and expenses. That’s why a small business experiencing cashflow issues – no matter how temporary – can quickly become a big problem. But what if you have the cash, it’s just tied up in your home? That’s an easy fix – you can apply for a short term loan secured against a property.
In other words, you can take out a second mortgage on your home.