Quick answer
A cash flow loan is assessed on your bank statements. If cash flow has dipped, or other loans are using it up, you will be declined. A Company Cash secured loan of $20,000 to $50,000 is just as fast, but is assessed on property equity, so cash flow evidence is not needed.
Key points
- Same speed as a cash flow loan, different basis of assessment.
- Assessed on property equity, not bank statements.
- Good for companies declined because cash flow dropped.
- Good for companies already carrying cash flow loans.
- Cash flow loan
- Assessed on bank statements and turnover
- Company Cash
- Assessed on property or vehicle security
- Loan size
- $20,000 to $50,000
- Speed
- As little as 24 hours once approved
Cash flow loans are popular with small businesses for good reasons: they are quick, they ask for little security and the application is mostly a bank statement upload. For a company with healthy, steady deposits they can work well.
The problem is the thousands of companies each day that hit a wall. Cash flow dipped for a quarter. A big customer paid late. The account is crowded with repayments to other cash flow lenders. On paper, those companies look like poor risks, and the answer from a cash flow lender is no.
Why cash flow lenders say no
A cash flow lender has one source of comfort: your bank account. So it looks at deposits, average balance, existing debits and trading history. A decline usually comes from one of these:
- Deposits fell. Even a short dip changes the picture.
- Too many existing repayments. Daily debits to other lenders leave little room for another.
- Dishonours or overdrawn days. These signal stress.
- Short trading history. Less data, less comfort.
- Credit marks. Defaults or late payments count against you.
None of these says the business is finished. They say the evidence is thin or crowded.
The alternative: a loan that does not need the evidence
The range is $20,000 to $50,000 backed by property, capped at 80% for residential and 70% for commercial once debts are deducted. Nothing like a formal valuation or cash flow evidence is required first, and the fastest funding is 24 hours after approval.
In effect it is a cash flow loan without needing evidence of cash flow. If cash flow was the reason for the decline, the reason falls away.
Side by side
| Typical cash flow loan | Company Cash secured loan | |
|---|---|---|
| Assessed on | Bank statements and turnover | Equity in property or a vehicle |
| Documents | Statements, sometimes financials | None for cash flow |
| Valuation | Not applicable | Not needed to start |
| Repayments | Often daily or weekly | Up to three months prepaid interest, then weekly |
| Best for | Steady deposits | Dipped cash flow, or many existing loans |
When to choose which
If your deposits are strong and you have no other debts, a cash flow loan may be fine. If you were declined, if your deposits dipped, or if you are already carrying several cash flow loans, a secured loan is worth a conversation.
It can also be the way out of a cycle. Our guide on why daily repayments choke cash explains how stacking loans drains an account. One secured loan that pays them out gives you one repayment and a few months of prepaid interest to breathe.
The honest trade-off
The price of skipping cash flow evidence is security. If the loan is not repaid, the lender can look to the property or vehicle. So do not borrow if you cannot see how it will be repaid. Typically that means from recovering cash flow, or by refinancing the property or another asset later.
Read the contract, compare the total cost and ask about fees. The ASIC unfair contract term protections give small businesses some protection, and an accountant can help.
Who gets the most out of this
The people who benefit most are those whose business is sound but whose bank statements are not flattering. A café owner whose takings dipped over winter, a tradie waiting on a large invoice, a wholesaler who paid a big supplier upfront: all are good businesses that look weak in a snapshot of the last ninety days.
If that describes you, a lender who looks at your property rather than your statements is looking at the part of your position that has not changed. Your equity is the same as it was last year, whatever happened to your deposits last month. That is the idea behind the loan, and it is why it can be quick.
A quick self-check
Ask yourself three things. Has cash flow dropped in the last few months? Do you already carry one or more cash flow loans? Do you own property or a company vehicle with nothing owing? If the answer to the third is yes and either of the first two is yes, a secured loan is likely to be a better fit than another cash flow application.
If your numbers are patchy, it helps to say so up front. A short explanation of why the last few months were uneven, and how the loan will be repaid, gives a person something real to work with when they call you back.
Apply
Start with the application form. The first question asks whether you need up to $50,000 or more. A few answers later, a person will call you. Approval is subject to assessment, and nothing written here promises a loan.
Frequently asked questions
What is a cash flow loan?
A business loan assessed mainly on the money moving through your business account, often with daily or weekly repayments.
Why was I declined for one?
Usually because deposits dropped, the account shows other repayments, or trading history is short. Those things matter less when a loan is secured.
Is a secured loan harder to get?
It needs equity in property or an unencumbered vehicle. If you have that, it can be simpler, because we do not ask for evidence of cash flow.
Can I use this to pay out my cash flow loans?
Yes. Many borrowers use it to wrap up other loans into one with a breathing space first.
What are the repayments like?
Up to three months of prepaid interest, then weekly repayments.