Unsecured business loan · Cash flow finance
Unsecured business loan for Cash flow finance
Cash flow finance is short-term business funding that covers the gap between paying costs and receiving revenue, used for wages, suppliers and tax rather than for buying assets.
How an unsecured business loan works for Cash flow finance
A term loan suits a one-off, quantifiable gap: a quarterly BAS that landed larger than expected, a slow month after losing a contract, or the working capital needed to service a big new order. You know the amount, the repayment and the end date. That clarity is its advantage. Its weakness is that it does not flex — if the gap recurs, you will be reapplying. Match the term to the recovery you actually expect, not to the smallest repayment on offer.
The cash-flow pattern we plan around
Costs falling due weekly or fortnightly against revenue arriving on 30–60 day terms, with the gap widening as the business grows.
What cash flow finance typically fund
- Wages and superannuation between invoice payments
- Supplier and trade accounts falling due
- BAS, PAYG and quarterly tax obligations
- Bridging a seasonal trough
Unsecured business loan for Cash flow finance: the numbers
| Typical amounts | $5,000 – $500,000 |
|---|---|
| Term | 3–36 months |
| Indicative rates | 9.9% – 29.5% p.a. |
| Repayments | Daily, weekly or monthly |
| Speed | 24–72 hours after documents are received |
| Documents cash flow finance usually need | ABN, GST registration and 6–12 months of bank statements · Aged receivables and payables reports · Most recent BAS lodgements |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Cash flow finance
Cash flow finance is short-term lending used to cover operating costs during the gap between outgoings and incoming revenue, typically repaid within twelve months and not used to purchase assets.
Structural versus one-off gap
A structural gap recurs every trading cycle because of payment terms, and suits a revolving facility; a one-off gap arises from a single event and suits a term loan with a defined end date.
What is an unsecured business loan?
An unsecured business loan is finance provided to a business without a specific asset held as security. Approval is based on trading history, bank statements and cash flow. Most lenders still require a personal or director’s guarantee.
How is an unsecured business loan repaid?
Repayments are usually daily, weekly or monthly direct debits over 3 to 36 months. Some lenders quote a factor rate (total payable ÷ amount borrowed) rather than an annual interest rate, so always compare the total cost.
Who is eligible for an unsecured business loan in Australia?
Typical minimums are an active ABN, 6 to 12 months of trading and monthly turnover above roughly $10,000, but each lender sets its own criteria. Lyft Money checks fit across the panel before anything is submitted.
Questions from cash flow finance
What is the cheapest way to cover a cash flow gap?
A line of credit or overdraft you draw only when needed is usually the cheapest for recurring gaps, because interest is charged only on the balance used. Invoice finance is cheapest for businesses with commercial debtors on long terms. Short-term unsecured loans and merchant cash advances are fastest but cost more, so they suit one-off needs with a clear return.
How quickly can cash flow finance be approved?
Unsecured loans and merchant cash advances are often approved the same day and funded within 24 to 48 hours from bank statements. Lines of credit and invoice finance take a few days to set up but are then available on demand. Applying before the gap bites, while trading looks strong, gets the best terms.
Can I use cash flow finance for wages, suppliers and tax?
Yes. Cash flow facilities are designed for operating costs such as wages, supplier payments, rent and tax, rather than buying assets. Lenders will want to see that the gap is timing rather than a structural loss, so consistent revenue in the bank statements matters.
How is a cash flow facility sized?
On the gap between costs falling due and revenue arriving, typically one to two months of operating costs for a line of credit, or a percentage of outstanding invoices for invoice finance. A broker works through your cash cycle and sizes the facility so it covers the gap without paying for headroom you never use.