In any given time of the life of a business, especially in this financial situation, it is crucial to keep up with cash flow fluctuation.

So as to cope with the instability of money coming in you may need access to an alternate source of funding either in the short or long term.

Here are three most commonly used alternative solutions

1. Overdraft facility

Designed for short-term debt, an overdraft facility can be attached to your business account with an agreed overdraft limit. Security is usually required together with a credit assessment of the businesses viability. The purpose of this overdraft facility is to provide working capital for the business before income is received. Overdrafts can be secured or unsecured and their fees depend on the credit limit. You only pay interest on money you use; you can save interest costs by only paying for the funds that are used.

2. A line of credit

Also designed as a short-term debt facility, a line of credit (equity loan) can provide access to funds by allowing the borrower to draw on an account balance up to an approved limit. Funds can be drawn at any time as long as the balance does not exceed the approved limit. These loans are usually secured by a registered mortgage over a property. You are usually required to make payments to at least cover the interest and fees on the loan. The main advantage of a line of credit is it's flexible, just like an overdraft it can be drawn as needed. Because this type of loan is usually secured against a property, interest rates are usually lower than for overdrafts. Failing to make your payments can put your property at risk.

3. Fully drawn advance

A fully drawn advance provides access to funds upfront and is used for funding long term investments such as a new business or equipment that expands the capacity of the business. This type of loan is not the same as a short term loan that you would use to help with cash flow and fund the day to day running of the business. A fully drawn advance is a term loan with a scheduled principal and interest repayment program. These loans are usually secured by a registered mortgage over a residential or commercial property or business asset. The advantage of using a fully drawn advance for business investment is the interest rate may be fixed for a period, providing certainty and stability for repayments.

For more information on financing your business and helping your cash flow please contact This e-mail address is being protected from spam bots, you need JavaScript enabled to view it