Video Series: Understanding funding problems facing SMEs

Understanding funding problems facing SMEs with Tom Anderson, Cashflows and Clinton Foy, Recap

In the world of traditional lending,  there is a real lack of funding available to SMEs. SMEs face a multitude of challenges in securing funding. This blog will walk you through how Cashflows is addressing this issue.  We created a new product, in partnership with our exclusive funding partner, Recap.

The Funding Problem

What are some of the challenges facing SMEs in securing funding?

We are aware of the funding problem. Tom Anderson explains, research indicates a lack of funding for small and medium-sized enterprises (SMEs). Traditional funding options come with high interest rates and hidden costs, which can further strain financial resources. Additionally, securing funding for SMEs can be complex, as the application process is intricate and often requires collateral to secure the loan. Furthermore, the amount received as a loan may not align with the SMEs' preferences, potentially being either too much or too little.

An Acquiring partner is the perfect partner to provide funding

How does data play a vital role in securing funding?

As a Cashflows is an acquirer, we have access to our customers transactional data. We anonymize the data and share it with Recap. Clinton confirms, Recap leverages your anonymized transaction data to provide you with a customized, pre-approved offer based on your unique daily trading behaviour. The trust placed in Cashflows data replaces the traditional loan application, eliminating the need for the long list of required documents. Cashflows and Recap bring you The Cashflows Advance, the funding solution tailored to your business.

Flexible Funding Unlocked – Introducing Cashflows Advance

How does Cashflows Advance allow you to access funding on your terms?

By creating an easy application, we have reduced the complexity and increased the simplicity in applying for funding as you are pre-qualified. It gives the customer flexibility and control to set their own terms, such as how much they want to take in an advance and how long they want to pay it back. Repayments are linked to sales, so the customer is only paying back what they can afford. If they have a good month, they pay more; if they have a poor month, they pay less.

The effect of Cashflows Advance

How does access to funding drive faster growth for SMEs?

Clinton highlights the growth a customer experienced after accepting an advance. We monitored this customers’ anonymised data provided by Cashflows. Their business performance trend highlights a decline over 6-8 months. On securing the advance, we continued to monitor their performance and we are delighted to see their growth trajectory. They took funding at the right value, at the right time and used it on the right opportunities, with the right plan.

We invite you to watch the full video to gain deeper insights into the power of Cashflows Advance for SMEs.

Learn more about Cashflows Advance.

If you have any questions, please contact us.