Today, there are so many small business loan options with so many different variables, but working out the true cost of a business loan can be difficult. You can borrow from one of the Big Banks, or from an independent shadow lender such as fin tech. Each of these has its own strengths and in some cases drawbacks. Tread carefully, after all this is your business you have to think about.
Even with the Royal Commission fiasco, Banks are still the biggest lenders out there and can offer lower rates. But they generally offer secured funding only and requires collateral like your family's home. But the rates are generally cheaper than unsecured funding. Banks love paperwork and there is a lot more paperwork when applying. Applications usually require a lot of documentation, from submitting business plans, to a heap of other forms. Banks also have more restrictive eligibility requirements, which many businesses can not meet and, obviously all this takes a lot more time to complete – 4-6 weeks on average.
Independent lenders, alternative financers or shadow banks are usually more flexible and generally have a larger risk-appetite, which is accompanied with higher fees to offset the risk they take on. Independent lenders can offer unsecured small business loans with faster and easier approval processes. This convenience often comes with higher interest rates, so it’s best to assess your options on a case-by-case basis and always ask about the fees and total cost of the loan including all fees. But as
Cloudfloat supports your business with a new and easy way to make payments to your suppliers. And it's incredibly simple to use.
Cloudfloat is an alternative to a heavy commitment like a business loan, a bank overdraft or even taking large chunks of cash out of your working capital immediately. Cloudfloat assists in keeping your business operating optimally and doesn’t weigh down your Balance Sheet. The old buy now, pay later finance has been innovated by Cloudfloat to provide Supplier or Trade Finance for small to medium size businesses at the scale you need. It's been designed to take the strain off managing your accounts payables and help you to keep your working capital healthy so you can utilise it for the demands of your business.
It works by Cloudfloat paying your suppliers and you pay us back in fixed instalments over time.
With Cloudfloat’s support you can concentrate on finding and expanding new business opportunities without the worry of impacting your immediate cash flow. Cloudfloat is always on and running in the background, so it’s a quick and easy to finance and pay those invoices. There is no need to apply or re-apply, so we won’t slow you down with additional paperwork, lengthy delays or face to face interviews.
We call it transactional finance, the right amount of finance you need just for the transaction you need to use it for. No interest charges. No applications or application fee. Just there when you need it. Consider it like your financial backend. Plugged in and always there ready for you to use. But it's not a revolving line of credit, so you don't have to pay for what you don't use. When dealing with suppliers, you can treat it like cash and negotiate better desicounts for paying early.
With easy instalment options which work with your business, Cloudfloat assists your businesses health by maintaining the cash flow you need to optimise your accounts management.
If you think your business could benefit from this way of working, then get started today
With Cloudfloat, you can buy now and pay later. Because Cashflow matters.