UK’s MarketFinance, one of the largest P2P invoice financing platforms, notes that if you’re a regular “around these parts,” then you’ll have most likely seen their “flex loans” cropping up quite often.
As explained by MarketFinance, flex loans give small businesses fast and “flexible access” to funds up to £100,000. The peer-to-peer platform is pleased to see them getting “put to work” for a number of entrepreneurs across the United Kingdom.
MarketFinance writes in a blog post that they think of flex loans as working capital “on demand.” According to the company, they’re similar to a cash flow buffer that you may access “all at once or in smaller amounts over time.”
Here are the primary benefits of utilizing flex loan:
- Withdraw your whole flex loan at once or request smaller amounts as needed
- Request and receive funds on the same day
- Select the repayment schedule that suits you
- Withdraw and repay your flex loan as many times as you like
- Monthly fee starting at 1.4% per 30 days charged only on funds you use
- No setup fee, no charge for early repayment
As mentioned in a blog post by MarketFinance:
“When you withdraw from your flex loan, it’s up to you to decide what period of time you’d like to pay it back over. The main thing to remember is that you only pay for the funds you use, and your available balance reloads with every repayment. That means you can withdraw multiple times.”
If you had wanted to, you could also take out the entire limit at once and then choose to pay it back in one go or in one installment. However, a flex loan can really “prove its use when you use it in smaller increments,” the company noted.
For instance, you may withdraw around £35k from a £100k limit in order to pay for a “higher staff bill if you’re ramping up for your busy season.” The following week you may want to order more materials and see that you’ll get a better deal if you order more items. As explained by MarketFinance, a flex loan gives you “instant access” to more cash so that you can “make the most of the discount” and then you can “choose a repayment schedule that works for you.”
As noted by MarketFinance:
“Cash is king, and cash flow is essential to every business, whatever they do. A flex loan helps you bridge the gaps in cash flow that get in the way of progress. That could be anything from a delayed payment from your customers, a high value order you need to place to manage demand or managing bills from your office space.”
The company added that all types of B2B and B2C businesses in a range of industries can “benefit from a flex loan.” According to MarketFinance, they serve as a good tool to “manage regular cash flow needs, from the day-to-day, to unexpected one-off charges.:
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