Just Cash Flow PLC has increased the limit on its revolving credit facility from £500,000 to £1m to help SMEs deal with the impact of the Covid-19 crisis.
The facility works in a similar way to a traditional bank overdraft, with the customer only paying interest on the amount drawn down — providing the flexibility that is needed without being tied into fixed monthly capital payments.
“Many excellent businesses have been dramatically impacted by Covid, losing access to their customers overnight with various government announcements,” said Martine Catton, chief commercial officer at Just Cashflow.
“Good businesses don’t become bad businesses overnight, and many are going to need substantial, fast and flexible support that isn’t always available through the traditional banks and the government supported schemes they are aligned with.”
The revolving credit facility aims to smooth out the peaks and troughs of cashflow by:
- giving access to cash when it is needed
- allowing funds to be drawn down and payments made as and when needed
- businesses only paying for what they borrow
- charging interest on a daily basis on the amount drawn down
- using it for stock purchases, delayed invoice payments, and business costs such as VAT/tax and staff wages.
Martine explained that successful entrepreneurs are, by nature, “fast moving and adaptable”.
“Post-Covid, they will be looking for opportunities to transform their businesses or create new ones.
“They need finance facilities that fits with this mind set.”
Source: Bridging & Commercial, September 29 2020