Aura Finance offers cash flow finance to support your businesses, enabling you to budget for the seasonal peaks and troughs and drawn only when you need it. Cash flow financing is perfect for companies that don’t have a lot of assets.

Cash flow financing can be used to fund your operations or acquire another company or other major purchase. You would essentially be borrowing from a portion of your future cash flow that you expect to generate. Lenders would create a payment schedule based on the companies projected future cash flow as well as an analysis of historical cash flows.

  • Cash Flow Financing is a form of financing in which a loan is made to a company that generates cash from sales but doesn’t have a lot of assets, simply backed by the company’s expected cashflow and using the generated cash flow to pay back the loan later.
  • If your company is generating positive cash flow, it means the company generates enough cash from revenue to meet its financial obligations.
  • Aura Finance would analyse your positive cash flow as a means of determining how much credit can be borrowed to your company. Cash flow funding can be either short term or long term to suit your needs and overall objectives.

Cash flow financing is different from an Asset Backed loan. Asset-based financing helps companies to borrow the money, the collateral for the loan is an asset on the balance sheet.

Assets that are used as collateral might include equipment, inventory, machinery, land or company vehicles.

Cash flow financing works in a similar fashion in that the cash being generated is used as collateral for the loan. Cash flow finance doesn’t use fixed or physical assets.

Another powerful tool in the finance toolbox, unleash Aura Finances specialist funding team and let’s determine how we can free up your cashflow. Call us today.