Smoothing out the bumps in your cash flow

Anyone who's run a hospitality business knows the feeling: a big week of trade is coming, the stock order is due, wages need paying — and the money from last month's invoices hasn't landed yet. Cash flow gaps are a normal part of business. Sometimes they're best managed with better systems or payment terms. Sometimes finance can help.

When cash flow finance may help

• Covering a timing gap between paying suppliers or wages and getting paid by customers
• Buying stock ahead of a busy season
• Taking on a larger contract that needs upfront costs
• Supporting planned growth, such as a new product line or location
• Having a buffer available for unexpected expenses

Options I can arrange

I can arrange all three, and I'll help you work out which (if any) suits your business.

Understanding the costs and commitments

Cash flow products can be convenient, but they can also be expensive compared with other forms of lending. Before you commit, it's important to understand:

• The total cost — interest rates, establishment fees, ongoing fees and any other charges
• How repayments work — some facilities have daily or weekly repayments
• Security — whether a personal guarantee or other security is required
• Serviceability — whether your business can comfortably meet repayments, even in a quieter month

I'll lay these out clearly so you can compare options properly.

When finance isn't the answer

Borrowing can help manage timing gaps or fund growth. It isn't a fix for a business that's consistently losing money — in that situation, more debt can make things harder. If that's where things are at, I'll tell you honestly, and I'd encourage a conversation with your accountant or a business adviser first.

Good to know: All finance is subject to lender assessment, terms and conditions. Information on this page is general and doesn't consider your business's circumstances.