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3 cash flow stress cures for small business clients

Promoted by Spotcap.

It goes without saying, cash flow plays a major role in the survival of a business. So much so that, according to a recent U.S. Bank study, 82 per cent of businesses fail due to short term cash flow problems.

Sponsored Features Spotcap 12 February 2019
— 1 minute read

Many small and medium-sized business owners are not aware of the latest finance options available to them. Being pro-active in helping them understand the new funding landscape can make all the difference to their businesses’ success.


A common mistake many business owners make is not addressing their cash flow challenges early enough. In acting too late, a business may find itself in financial difficulties, or even worse, facing insolvency or liquidation.

Accountants play a crucial part in detecting cash flow problems early, so when it comes to quickly bridging a cash flow gap in your client’s small business, are you fully aware of all the options available to you and your clients?

Overdraft or credit card

Many Australian businesses have an overdraft set up for their business bank account or hold a business credit card. Both can help them with seasonal trends and short-term cash flow challenges. The main benefit of these options is that the outstanding balance can be mostly paid back after one month interest-free.

However, often businesses may require larger sums or want to borrow money for longer than a few months.

Invoice finance

To help businesses access owed money faster, invoice finance lenders advance 80-90% of what an invoice is worth. If your client regularly invoices businesses, this could be a good source of short-term funding and can help alleviate cash flow problems.

However, this funding method only works for businesses who sit on commercial invoices. If a business works primarily with consumers, this option may not be the best fit.

Unsecured business loan

Apart from the above methods, most business loans are secured against assets. There are some lenders, however, which offer unsecured short-term loans to established and profitable businesses.

Unsecured loans are more accessible and perfect for professional services, manufacturing and wholesalers that do not have assets to lend against.

Because an online lender takes on a considerably higher risk, the loan assessment criteria are typically stricter. However, many businesses are glad to receive a short-term loan without having to put an asset or their house on the line.

One such lender transforming the way businesses access funding online is Spotcap. The fintech lender actively works with accountants to help their clients succeed with unsecured, affordable and accessible business finance from $10,000 to $400,000.

Spotcap is a founding signatory to the AFIA Online Small Business Lenders Code of Lending Practice and uses cutting edge technology to enable business loans in as little as 24 hours, with paperless applications that take only five minutes to complete.

To learn more about how Spotcap makes it easy and time-saving for accountants to offer their clients business funding advice, visit


3 cash flow stress cures for small business clients
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