Christmas and New Year Break is the most favourite time of year, a time we reflect and catch up with our family and friends.
Form many business owners this can be a very stressful time of year where wages need to be covered and holidays, also including giving yourself some time off. During this time bills still need to be paid and wages. Using personal capital causes stress can cause issues.
There are some facilities that can assist with this which is called commonly as cashflow lending and/ or revolving lines of credit which can come in many forms. Many find it easier just to get a term loan a boost of capital which can be a bit of a trap sometimes.
Revolving lines of credit and cashflow lending facilities should be in most cases be used as a "rainy day fund" or capital that fills in gaps in the business cycle, obtaining goods------> sales --------> payment. This also includes supporting the gaps in times of the business cycle pausing for a moment such as the holiday period.
How are these facilities charged? There 2 main fees; a line fee which is the charge for keeping the facility open, and the charges that relate to the amount WHICH IS CURRENLY BORROWED on the facility, not the whole facility amount. Then once paid back down to nothing outstanding there in most facilities only the line fee will be charged.
There is much more to this so if you or your boss would like to know more, please feel free to call Shannon Harding on 0427879258
Please keep in mind it is in most times a bad time to apply for a cashflow loan when your business needs it now rather than foward planning.
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