Unlock Opportunities with Cash Flow Financing

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Unlock Opportunities with Cash Flow Financing
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Introduction
Cash flow financing is a type of loan where a
lender provides a loan based on the companys
projected cash flows, offering an alternative for
businesses that may lack traditional collateral.
Businesses that practice careful cash flow
management are usually approved for this type of
financing. This guide can help you decide if a
Cash flow loan makes sense for you and, if so,
how to get the right one.
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The Basics of Cash Flow Financing
Cash flow financing leverages the future cash
flow of a business as an indicator that it can
pay back the loan. Cash flow loans are attractive
to small businesses that generate a large amount
of cash from their sales but dont have much in
the way of physical assets, such as vehicles or
equipment, which would typically be used as
collateral to back the loan.
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Cash flow financing can be either short-term or
long-term, providing flexibility to serve many
business needs. Small businesses use funds from
these loans to manage financial emergencies, as
working capital, to take advantage of
opportunities, or make significant purchases.
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Pros and Cons of Cash Flow Loans
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Pros

• Relatively fast source of funding - If you need
  cash quickly, some lenders offering cash flow
  financing can approve applications and deposit
  funds in your business bank account in less than
  one day. Be aware that traditional loan providers
  and lenders may take weeks or even months to
  issue financing.

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• Flexible requirements - Cash flow lenders
  heavily weigh your historical and projected
  revenue and expenses when reviewing your
  application. Theyre typically more flexible than
  traditional business lender requirements. Unlike
  more standard loans, startups, businesses with
  bad credit, and those with less than stellar
  financial health may qualify.

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Cons

• Cash flow financing is expensive - Because of
  their less diligent underwriting process and no
  collateral requirements, cash flow loans are
  riskier than many other types of business loans.
  To mitigate this risk, lenders typically charge
  higher interest rates and fees. They can have
  interest rates ranging from 10 to 99 annual
  percentage rate (APR).

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• Frequent regular payments - Cash flow loans
  usually come with short terms and require
  frequent repayments, often daily or weekly,
  instead of monthly. The payment schedule can have
  a significant impact on cash flow, whereas other
  lending products like a business credit card or
  line of credit could give more flexible payments.

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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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Thank You