Up to three months prepaid interest, then weekly repayments

Every year thousands of Australian companies are turned down for finance, not because the business is failing, but because cash flow has dipped or because they already carry several cash flow loans. For those companies the problem is rarely the size of the loan. It is the rhythm of the repayments. Company Cash structures its loans around that problem: up to three months of prepaid interest at the start, followed by weekly repayments.

How the structure works

When you borrow from Company Cash, up to three months of interest can be prepaid. In practice that interest is covered at the start of the loan, so for that period nothing is debited from your account. Once the prepaid period ends, repayments are weekly.

The result is a loan that gives the company a clear runway. A business that has just cleared a pile of daily debits from other lenders does not have to face another payment schedule on day one. It has a few weeks to rebuild cash flow before regular repayments begin.

Loans run from $20,000 to $50,000 and are secured on property, or on company vehicles with nothing owing. Because the security does the heavy lifting, we do not need evidence of cash flow to assess the loan.

Why this suits companies that were declined

Think about the usual story. A company takes a cash flow loan, then another to cover the first, then a third. Daily or weekly debits stack up, the account runs thin and the next lender looks at the statements and says no. The business is not necessarily unprofitable. It simply cannot show the cash flow a lender wants, because so much of it is already spoken for.

A secured loan with prepaid interest changes the order of events. The money arrives, the older loans are wrapped up, and the company gets a breathing space before one simple weekly repayment replaces several complicated ones. Our guide on why daily and weekly repayments choke cash explains the pressure these loans create, and why consolidating them matters.

What a weekly repayment looks like

Weekly repayments suit most trading businesses. Payroll, supplier terms and many customer payments already run on a weekly cycle, so a weekly debit is easier to plan around than a monthly lump. It also keeps the balance falling steadily rather than waiting for one large payment at month end.

A few practical points:

1. Check the first debit date. After the prepaid period, find out exactly which day the first weekly repayment comes out.
2. Line it up with income. If your largest receipts arrive early in the week, ask for the debit to fall after them.
3. Allow for BAS months. The ATO publishes BAS due dates, and quarterly payments can squeeze a weekly budget.
4. Keep a buffer. A dishonoured debit can cause fees and awkward conversations, so keep a small cushion in the account.

How most companies repay

There are two common ways the loan comes to an end.

From cash flow. The most common route is simple. The company uses its weekly takings, receipts and invoice payments to meet the repayments, and clears the loan over time. Because other debts have been wrapped up, there is more of that cash flow left over to do it with.

By refinancing. Some companies use the period to tidy their records and rebuild their credit, then refinance the property or another asset with a bank or other lender once they qualify for cheaper finance. Our exit strategies guide sets out the options, including selling an asset.

Whichever route applies to you, think about it before you borrow. A lender will want to know how the loan ends, and it is a sensible question for your own planning too.

Questions to ask before you sign

• How much interest is prepaid, and for how many weeks?
• What is the weekly repayment, and on what day is it debited?
• Is the loan repayable early, and are there any terms that apply if so?
• What are the fees at the start and the end?
• What happens if a repayment is missed?

Reading the contract carefully matters. If a term is unclear, ask for it in writing. The Australian Securities and Investments Commission explains the protections small businesses have against unfair contract terms.

Getting started

If you are a company with a property or an unencumbered vehicle, and you need $20,000 to $50,000 quickly, the first step is a short enquiry through our application form. We will talk through the amount, the security and how the repayments would work. With no formal valuation and funding in as little as 24 hours once approved, the process is designed to be quick.

Approval is subject to assessment, and nothing written here promises a loan.