Cash flow finance is a form of financing/lending where the loan is secured by a business' expected cash flow or expected invoice/debtor payments. Sometimes also referred to as Debtor Finance or Factoring, cash flow finance was previously viewed as a bad finance option because of the high cost of the finance. However now with increased competition and established specialist financier’s rates are now quite competitive and the cash flow finance products are far more flexible than ever before.

Cash flow finance differs from a business loan or overdraft, because the collateral for the loan is based on the business’ assets. The schedules or repayments for cash flow loans are based on the business' projected future cash flow and expected debtor payments.