A cash flow loan is a form of financing that gives a company money based on its income rather than its credit score or assets.
These loans are ideal for businesses that have a reliable source of income as they are based on the company’s projected future revenue.
Loans for cash flow can be utilized for different objectives, such as working capital, inventory financing, and purchasing equipment.
Specialty lenders or alternative finance companies generally provide loans with higher interest rates in comparison to traditional bank loans. Yet, these loans can be advantageous for businesses that need to cover urgent financial needs, as they can give quick access to funds and have flexible payment terms.
