Cashflow Assessment is the evaluation of a business’s income and expenses to determine its ability to meet loan repayments and maintain operational stability. Lenders use cashflow assessments for Low Doc Loans, No Doc Loans, and Working Capital Loans. Relevant blogs include Low Doc Cashflow Loans, Cashflow Mistakes SMEs Make, and Business Cashflow System.

Why Cashflow Assessment Matters

Cashflow assessment helps lenders understand whether a business can service debt without jeopardizing operations. It is essential for determining Borrowing Capacity, Affordability, and Credit Limits. Businesses in the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub benefit from accurate cashflow evaluations for smoother approvals.

How Cashflow Assessment Works

• Analyse income from sales, services, or other sources.
• Track operational expenses, payroll, and supplier payments.
• Compare cash inflows and outflows to repayment obligations.
• Identify surplus or shortfalls to determine borrowing capacity.
• Provide lenders with clear, up-to-date financial data for approval decisions.

Related Switchboard Resources

• Low Doc Asset Finance
• No Doc Loans
• Working Capital Loans
• Low Doc Cashflow Loans
• Cashflow Mistakes SMEs Make
• Business Cashflow System
• Borrowing Capacity

Official info: business.gov.au