The Covid-19 pandemic created a host of new challenges for businesses of all sizes. One of the most pressing issues facing businesses is how to access the liquidity they need to keep operating. 

Merchant lending can provide an important source of financing for businesses in this time of crisis.

This blog post will explore how merchant lending can help your business recover from Covid-19. We will also discuss some of the key benefits of merchant lending and how to get started.

Alternative financing sources

Small companies are increasingly resorting to merchant funding for commercial reasons and use. Following the 2008 financial crisis, there was a boom of alternative lenders with business models geared to use technology and evaluate alternative data for underwriting purposes.

Cash Flow Capital, a local lender trying to make rapid and creative finance available to businesses, offers several financial solutions to assist firms in getting back on their feet.

The resources you require

Because of the uncertainties around Covid-19, small firms may have delayed acquiring high-value products. Delaying these types of required expenditures, on the other hand, might hinder your development and harm your competitiveness.

Asset financing allows organizations to purchase high-value assets while stretching the expense over time. Moreover, because these products often aid in business growth, repaying them should get easier as time passes.

Cash Flow Capital’s sibling firm, Preference Capital Asset Finance, provides:

  • Asset finance,
  • They are allowing businesses to access critical assets without sacrificing cash flow, with the option of selling or leasing back current assets to get more money if needed.

Trade liberalization

You cannot do business until you trade, and you can’t sell unless you have stock.

Businesses may use trade finance from Cash Flow Capital to buy more stock, expand import and export volumes, and finance the operating cycle without depleting daily working capital resources. This is critical when operations and growth must frequently be carefully balanced in hard financial times. It can also help with forwarding and clearing charges, foreign exchange costs, transit and insurance, and customs and duty payments.

About Cash Flow Capital

Cash Flow Capital provides short-term business capital to assist SMEs in meeting their objectives. The organization is as dynamic as the businesses it services, recognizing that in today’s ever-changing economic climate, businesses require rapid access to creative finance. With its unique distribution strategy and distinctive lending Approach, Cash Flow Capital has grown to become South Africa’s premier unsecured business financier.

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