A cash flow loan is a term loan provided based on your company’s past and forecasted cash flow. It is typically used by e-commerce businesses to fulfill working capital needs, such as payroll and inventory.

As a form of unsecured loan, cash flow loans do not require pledging of tangible assets as collateral. You may, however, be required to sign a personal guarantee over the loan.

Cash flow loans are suitable for e-commerce companies which are currently in short supply of working capital, but expect strong cash flows in the future.

For the following types of businesses, cash flow lending could also give you access to capital which may not be available via other routes:

• Your company has not been in business long enough to build a strong credit history
• You do not have adequate physical assets to back a loan

Pros and cons of cash flow loans

About Choco Up

Choco Up is a global technology and financial services platform, offering revenue-based financing and business growth solutions for digital merchants and startups.

With data analytics and machine learning at its core, Choco Up employs vast integrations to automate fund deployment, providing fast-growing companies with zero-equity funding in a quick and seamless manner.

We currently have offices in Singapore and Hong Kong and serve clients worldwide, providing smart-growth analytics and global payment solutions to fuel their growth.