Cash flow. For many small businesses it is, indeed, king. And for a very good reason – because a lack of cash flow is the leading cause of small business insolvency in Australia.
And that’s pretty unfair. You can have a stack of invoices issued, you know that money is coming in – but unless those invoices are being paid in a timely fashion it can cause serious problems when you have bills to pay or business essentials to buy.
Not only does it cause an immediate headache in the here and now, it can also prevent you from investing in the business – buying that stock that you know will generate a good profit, or investing in a piece of equipment you need to win a new contract.
As a small business owner, it can leave you feeling as if you’re always chasing your tail, rarely getting out of the day-to-day grind.
And opportunities are passing you by.
Taking control of your cash flow
Traditionally, an overdraft or credit card may have been the first port of credit call, and they can be useful for small businesses. However, the creeping interest rates often create a sense of uncertainty at just what that credit is actually costing – and how that interest is accumulating.
A new, alternate way to smooth those cash flow peaks and troughs is hummpro, a buy now pay later for business solution, which is hoping to change the face of business lending in Australia – and help Aussie small businesses ride out those storms.
What is hummpro?
hummpro’s proposition is simple: it’s an app-based business finance solution that enables you to have a Mastercard on your phone or other smart device with up to $30,000 of available credit. You can add your card to your Google or Apple Wallet, and can use it online or in person – wherever Mastercard is accepted.
The real standout point of difference when compared to other forms of business finance, however, is that hummpro allows you to flexibly choose how you repay, and doesn’t charge you any interest.
You don’t need to decide between making minimum payments and racking up maximum interest, or making full repayments that aren’t as cash flow friendly.
Here’s how it works: You spend using your hummpro card during the month. There is a $15 monthly fee that is only charged if you’ve made a purchase in that month.
At the end of the month, your expenses are grouped into a monthly balance, and you have 30 days before it is due. This means you have up to 60 days (30 days guaranteed) from the day you make a purchase, before your repayment is due.
If you can’t repay the balance in full, no worries. There are two easy ways you can manage your hummpro balance.
Firstly, you can also choose to hit ‘pause’ to defer your payment for a month for a fee of 3.5 per cent of the paused balance, and you can pause each monthly balance twice.
Alternatively, you can convert your balance into a six, nine or 12-month payment plan, for a plan fee of 1.5 per cent per month. If your cashflow improves, you can pay off the plan early without any cost, and you will save on plan fees not yet charged.
hummpro provides full optionality for you to manage your repayments according to your cash flow and you only pay fees for use.
And each new month gives you a brand new monthly balance pool with the same guaranteed terms and flexible repayment options even if you have multiple pauses and plans from previous months running concurrently. So you have maximum flexibility to continue purchasing to run your business, and managing your repayments according to your cash flow.
hummpro in action
So, whether you’re running a cafe or bakery, daycare or gym, builder or fashion boutique – if you’ve been in business for a year or more you can apply for up to $30,000 credit without any need to provide any assets as security. And – bonus – there are no long forms to fill in.
To get started with hummpro, you just sign up, add your card to your phone, connect your card or bank account for repayments, and go for it.
You can see your balance, choose to pay, pause or plan via the app. It’s good for business owners who want to regain that sense of control around cash flow, and perhaps a few less sleepless nights.
This content is brought to you by Kochie’s Business Builders in partnership with hummpro.
The information above is intended to be general in nature and is not personal financial product advice. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. You should seek independent financial advice prior to making an investment decision in relation to a financial product (including a decision about whether to acquire or continue to hold). Pinstripe Media and hummpro are not liable for any loss incurred by use of or reliance on the information.
Feature image: Adobe Stock