Cloudfloat offers an Approved Borrowing Limit so eligible businesses can access a pre‑approved amount of funding quickly, while providing you the certainty that the transaction will be approved without needing a full assessment for every transaction. Managing these limits has real operational, risk, and capital costs for Cloudfloat, so an annual fee applies.
This article explains why the fee exists, who is eligible, and how renewal, changes, suspension, and cancellation work.
Why there is an annual fee
Managing approved credit limits comes with ongoing costs and risks, including:
Maintaining pre‑approved funds so eligible customers can draw quickly when needed.
Monitoring risk and the trustworthiness of businesses over time.
Administrative work to manage accounts, limits, reviews, and transactions.
Ensuring fair and consistent access to borrowing across all eligible customers.
Without a structured fee, customers could hold unused limits indefinitely while Cloudfloat carries the operational and risk cost of keeping that limit available. The annual Approved Limit Fee helps:
Ensure limits are actively maintained and used by committed customers.
Reduce operational and financial risk.
Support the sustainability of offering pre‑approved borrowing as a service.
Eligibility for an Approved Borrowing Limit
To qualify for an Approved Borrowing Limit under this program, a business must meet all of the following:
Business structure
Must be a company; or
A trust with a corporate trustee.
Financial assessment
Must meet minimum trust score and business profile requirements, including financial stability, creditworthiness, and operational track record.
Approved limits are set based on this assessment and may be up to $500,000, subject to Cloudfloat’s credit criteria and risk appetite.
Documentation and compliance
Provide financial information and documents as requested (for example financial statements, tax filings, bank data) for initial assessment and ongoing reviews.
Sign the terms and conditions of the Approved Borrowing Limit program.
Provide any required guarantees or security (for example director guarantees or security agreements) to support the limit.
Program compliance
Comply with all program terms, including:
Payment of annual fees.
Making monthly repayments on time.
Following Cloudfloat’s account and limit management policies.
Businesses that do not meet these criteria, or do not provide required information or guarantees, are not eligible for an Approved Borrowing Limit under this program.
Annual Approved Limit Fee
To maintain operational efficiency and ensure approved limits remain available, an annual fee applies based on your approved limit:
Key details:
Charged upfront: Upon approval of your requested credit limit, the annual fee must be paid via the provided payment link. The credit limit will be activated once payment is received.
Activation: Your approved limit is not available for use until the annual fee is paid.
Customer choice: You choose the approved limit band; the fee corresponds to the limit selected and approved.
Annual renewal: The annual fee is charged each year on renewal to keep your approved limit in place.
The fee is non‑refundable, even if you do not use the approved limit during the year. Similar non‑refundable annual or line‑fee structures are standard in business credit facilities and credit card products.
Renewal and changing your limit
Annual renewal
Approved Borrowing Limits are renewed annually.
The annual fee for the next year is charged automatically at renewal.
You will receive a renewal notice at least 30 days before auto‑renewal so you can review or change your limit.
Adjusting limits
You may request a higher or lower limit at renewal.
Any change is subject to updated financial assessment and approval.
If your limit changes, Cloudfloat may apply a pro‑rated fee adjustment consistent with your new limit and the remaining period.
Continuous eligibility
To remain eligible at renewal, you must:
Pay the annual fee on time.
Be up to date on monthly payments.
Provide updated financial documents or guarantees when requested.
Non‑payment and suspension
Non‑payment of the annual fee
If the annual fee is not paid, the approved limit will not be activated or may be suspended.
Suspended limits cannot be used for new transactions.
Overdue monthly payments
Overdue or missed payments may also lead to suspension of your approved limit.
Any existing balances continue to accrue fees/interest in line with your agreement until they are fully repaid.
Restoration
Once all overdue amounts (including the annual fee and any late fees) are paid, access to the limit is restored, subject to Cloudfloat’s ongoing assessment.
Cancelling an approved limit
You may request cancellation of a specific approved limit if you no longer want that facility.
Notice and requirements
Submit your cancellation request at least 30 days before the end of the annual period so the request can be processed before the next renewal.
All obligations associated with that limit must be fully settled, including:
Outstanding balances and instalments.
Any unpaid annual fees or arrears.
Any guarantee or security obligations linked to the limit must be capable of being released.
Effect of cancellation
Once processed, access to that approved limit ends.
Any remaining balance continues to accrue fees/interest until fully repaid.
Cancellation of one limit does not affect any other approved limits or your Cloudfloat account, unless you specifically request closure or Cloudfloat exercises its rights under the terms.
Suspended limits cannot be cancelled until arrears or outstanding obligations are cleared.