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Cash Flow Finance

Cash flow finance is a short-term loan designed to help businesses survive any temporary period of decreased income or additional expenses. Businesses are able to acquire funds and then pay back the amount over an extended period, assisting firms in ‘bridging the gap’ between supplier delays or unforeseen costs.

This loan type can be particularly advantageous for businesses with a strong, consistent income, but limited collateral, such as equipment or other tangible assets. Companies can tap into cash flow finance for a variety of benefits, such as supporting day-to-day operations, driving internal growth, expanding to new premises, or making substantial capital investments.

Repayment of the loan is facilitated through the positive income generated by your business. A portion of the company’s projected revenue, as outlined by financial forecasts, is used to fund the instalments. Lenders will develop a repayment schedule based on both your business’s anticipated income and an examination of historical financial performance.

A solid revenue stream and promising financial projection signals that a business is well equipped to fulfil its financial commitments. This also helps determine the degree of confidence a lender will have in offering funds to your business. Naturally, the healthier your books are, the more assurance financiers will have in extending preferable loan terms.

Cash flow loans offer several advantages to businesses with consistent revenue and solid financial forecasts. These benefits not only help businesses seize opportunities for growth, but can also assist them in overcoming temporary downturns. A few advantages you can consider are:

  • Flexibility: Cash flow loan terms are highly adaptable to the varying needs of businesses. Whether you need funds to expand operations, invest in new equipment, or cover an unexpected expense, loan amounts and the duration of your repayment plan can be catered to your requirements.
  • Short-term commitment: With repayment terms of up to 60 months, cash flow loans allow businesses to avoid long-lasting financial obligations. This shorter repayment period will enable you to maintain greater control over your finances, and focus on growth without being burdened by long term debt.
  • Faster access to funds: Compared to secured loans, cash flow loans offer quicker access to much-needed capital. This speed can be crucial for businesses that need to address financial challenges immediately, such as smoothing out irregular revenue streams or navigating slower trading periods.
  • No collateral required: Although business applicants are required to be homeowners to qualify for this facility, cash flow loans are still regarded as unsecured, which means you do not need to provide company or personal assets as collateral. This feature often makes these loans appealing to companies that lack assets or prefer not to offer them as security.

If you feel like your business is in a position where it could capitalise on an upcoming opportunity, or you are currently in a slump due to the quarter or season, it is always worth contacting our specialist team today on 020 7839 1980 to learn more, or feel free to email us with queries via [email protected].

No, we do not charge an early repayment fee for settling your cash flow loan ahead of the agreed repayment term. At Nucleus, we understand that businesses may sometimes be in a position to repay their loans ahead of schedule, and we believe in providing the flexibility for our clients to do that. It’s important to note that if you wish to terminate the contract early, you will be required to settle the full outstanding balance as indicated in your initial agreement.

In some cases, we may even offer a 10% discount on the outstanding balance for clients who are interested in early repayment. This can provide additional financial benefits and savings to your business, allowing you to allocate funds towards other important areas of growth. If you are considering early repayment and would like to discuss the possibility of receiving this discount, we encourage you to get in touch with our team.

Our dedicated in-house experts can discuss options and guide you through the process, assisting with any questions or concerns you may have. To make contact with one of our team, please call us at any time on – 020 7839 1980 – alternatively you can request a call back at a time convenient to you.

The minimum loan amount we consider for cash flow funding is £25,000. If you’re looking to borrow a smaller amount, we offer a variety of alternative financial products to suit your needs. We encourage you to explore these options at your convenience to find the most suitable solution for your business.

If you wish to speak to one of our team directly, please contact us on – 020 7839 1980 – alternatively you can request a call back at a time convenient to you.

We offer cash flow finance with repayment terms ranging from a minimum of three months to a maximum of 60 months. When negotiating the term length with our team, our primary focus is on affordability, ensuring that the repayment plan fits your business’s financial capabilities.

To determine the appropriate term length, we consider various factors, such as your cash flow situation, your business’s trading history, and the sector in which your business operates. Although we maintain a level of flexibility in our offerings, the most favourable terms are typically available to businesses that can demonstrate long-term positive projections, financial stability, and senior business owners’ homeownership.

The loan amount, which can range between £25k and £250k, and the loan term length have a significant impact on repayment amounts. Consequently, having accurate financial forecasts is crucial, not only for us as the lender but also for you as the borrower. By understanding your business’s financial position, we can both feel confident in your ability to repay the loan once it has been issued.

Yes, we currently require prospective borrowers to be homeowners. However, please note we do not secure your property against the loan. Homeownership serves as an indicator that the individuals involved in seeking this facility are dependable and have a history of making timely repayments.

Demonstrating that you are capable of managing debt is advantageous for you as a borrower and can potentially help secure more favourable loan terms. While owning a property is one criterion we require, it does not guarantee approval for financing. Our team at Nucleus takes a holistic approach when reviewing applications, considering other factors such as credit score, your business plan, and financial history.

We will always strive to ensure our cash flow solutions are tailored to suit your unique business needs and circumstances. By evaluating these various aspects of your financial profile, we can provide you with the most appropriate funding option to help your business succeed and grow.

As with other business loans, there are some essential requirements you need to meet before you can secure funding through our cash flow facilities. These requirements play a crucial role in ensuring we provide financial support to businesses that are proven to be established and have a strong foundation for growth.

The most basic requirements to access financing include:

  1. UK registration: Your company must be registered with Companies House in the UK. This registration ensures your business is legally recognised and compliant with UK regulations. Compliance with legal requirements is vital for both your business’s long-term stability and our confidence in providing financial support.
  2. UK location: Your business must operate within the UK, as our cash flow finance loans are designed to support local operations. By focusing on UK-based businesses, we can better understand the market dynamics, specific challenges and opportunities that your business faces.
  3. Industry experience: A minimum of 3 years of trading is required to demonstrate your business’s credibility and stability in the market. Naturally, the more established your business is, the more confidence we can have in its ability to manage and repay the loan effectively.

Once you have met these basic requirements, we can proceed with your application process.

When considering financing for your business, it’s important to understand the associated costs to make informed decisions. At Nucleus, we offer competitive flat rates, starting at 5% for cash flow funding. Please note, the exact interest rate for your business will vary depending on several factors.

These factors include your business’s credit score, financial history, industry experience, and overall financial stability. By taking a comprehensive approach to evaluating your business, we can determine the most suitable rate for your financing, and tailor the offer to your specific needs and circumstances.

While we strive to provide competitive and affordable financing options, it’s vital to consider the overall cost of cash flow financing in relation to your business’s financial health. We recommend that you create accurate financial forecasts to help assess the impact of the loan repayments on your future cash flow. This exercise will not only allow you to determine whether this type of financing is the right solution for your enterprise, but also enable you to confidently manage the loan repayments once the funds are issued.

Let’s look at a simple example of a cash flow loan to help understand how this type of financing typically works:

A business owner approaches Nucleus seeking a £25,000 loan to support their enterprise’s short term cash flow operations. As a homeowner, they meet our first eligibility criteria for this facility. Their credit score, financial history, and industry experience further qualify them for the loan.

After careful assessment, we agree to provide the business with a £25,000 loan for a 24-month term at a competitive 5% interest rate. This interest rate reflects our confidence in the business’s stability and potential, as well as their ability to manage and repay the loan effectively.

Under this agreement, the business will make monthly repayments over the 24-month term to cover the principal amount and interest. For example, with a £25,000 principal amount and a 5% annual interest rate, the monthly repayment would be approximately £1,097. The total amount repaid over the 24-month period would be around £26,328, including £1,328 in interest.

By obtaining this funding from Nucleus, the business owner can confidently navigate temporary financial challenges, invest in growth opportunities, and maintain a healthy cash flow to ensure their enterprise’s continued success.

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