• Matthew Lawrence

Cash-flow Loans - No Assets? No Problem!

Matthew Lawrence looks at a rapidly growing type of finance for asset light businesses.

50 years ago, most businesses could not borrow without hard asset security, usually in the form of land and buildings.

The 70’s and 80’s saw the growth of factoring and invoice discounting, then, not much changed until the 2008 banking crisis, when “alternative” lenders emerged.

The new lenders didn’t just “fill the gap”, they brought new types of loans and advances or made specialised loans available to a wider market. Cash-flow lending has been a very large part of this.

A cash-flow loan is made to a company on the basis, of its expected cash flows. They are either unsecured or secured by a debenture over the company rather than fully secured by property.

Cash flow loans are particularly appropriate if a business is retail, doesn’t make credit sales, or if invoice finance is inappropriate due to the nature of sales or the credit period offered. Available short and long term, they are frequently cheaper and easier to administer than invoice finance.

Common reasons for taking out cash-flow loans include:

Business Development

  • Investing in people

  • Investing in product

  • Investing in marketing

Business Purchase

  • Growth through acquisition

  • MBO

  • MBI

Shareholder Exit

  • Succession Planning

  • Retirement

  • Dispute resolution

If you wish to find out more, you can contact Matthew on 07770 683874 or email



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