Cashflow is essential for the success of any business, especially small and medium-sized enterprises (SMEs). Many SMEs face challenges such as late payments, fluctuating expenses, and limited access to financing, which can hinder their growth. A recent SME growth index report revealed a significant increase in SMEs turning to non-banks for cashflow support over the last decade. The report shows that 52 per cent plan to use non-bank lending for new business investments, highlighting a growing trend towards alternative financing options to support business growth.
In this article, we discuss how businesses can use non-traditional unsecured business loans to improve their cashflow management, access funds quickly without collateral, and address various financial needs with greater flexibility. Keep reading to learn more.
How unsecured loans benefit SMEs
Unsecured business loans, which don’t require collateral, offer accessibility and flexibility for SMEs. Key benefits include a streamlined approval process and quicker access to funds, enabling businesses to address various cashflow needs swiftly. This flexibility allows businesses to allocate funds where needed without the risk, making it an attractive financing option for those looking to maintain operational stability and drive growth.
- Accessibility: Easier and quicker approval process.
- Speed: Faster access to funds.
- Flexibility: Use funds for various cashflow needs.
- No collateral required: Reduced risk for business owners.
Unsecured loans can be accessed through various methods and ensure flexibility and convenience for the borrower. However, the most secure and flexible method is through a virtual credit card facility, which offers enhanced security features and ease of use for managing transactions.
How SME’s can leverage virtual credit cards for better cashflow management
Integrating virtual credit cards with a business loan allows companies to access the cash they need to cover expenses efficiently. These cards are generated instantly for specific payments and offer enhanced security and real-time financial insights, empowering SMEs to effectively manage daily expenses, optimise cashflow, and achieve sustainable growth.
This modern payment solution not only helps in maintaining a healthy cashflow but also provides cost control by setting spending limits and expiration dates, preventing overspending. Additionally, the enhanced security features of virtual credit cards protect against unauthorised transactions, reducing financial risk and further securing the business’s finances.
Access the funds your business needs today and improve cashflow
Using unsecured business loans delivers a practical approach to improving cashflow management. This delivers the flexibility, speed, and security needed to navigate financial challenges and enable SMEs to maintain a healthy cashflow – ensuring long-term success.
Spenda offers businesses access to an unsecured line of credit, delivered through a virtual credit card, that gives you the cash your business needs to operate efficiently.
- Access up to 25 per cent of your annual turnover
- Extend trade terms by up to 90 days
- Simple digital sign up
- Direct integration with your accounting system
- Make secure payments
