For Businesses
Technology
Increase cashflow
Estimated time to read page: 3min | Written - January 2025. Reviewed quarterly.
"Working capital loans support day-to-day operations by providing the liquidity businesses need to cover expenses like payroll, inventory, or rent. With flexible terms and rapid access, they ensure businesses can maintain smooth operations and seize opportunities as they arise." - Jamie Davies, Head of Lending
A working capital loan is similar to a traditional business loan, except it's specifically there to increase working capital, and therefore cashflow. It is designed to help businesses cover short-term operational expenses. These loans provide the necessary liquidity to ensure smooth day-to-day operations without needing long-term investments.
As this is a short term option, the common term time for this product is 12 months, although this can be specifically tailored to suit the company's needs.
Unlock the funds you need to manage daily operations – apply for a Working Capital Loan today and keep your business moving forward
The industries that typically apply for working capital loans are:
Once the funds have been credited, it can be used for any day-to-day business expenses, such as bills, rent, and any other costs that might hinder cash flow. A facility like this is put in place typically to cover business operational costs on a short-term basis.
This options is ideal for businesses needing immediate cash flow to cover operating costs.
The specific eligibility criteria will depend on each lender, the rule of thumb usually involve:
The business has to be registered and based in the UK and trading for at least 6 months
Most lenders want to see a minimum turnover of £100K
(unless the business is a startup)
Most lenders will require a minimum loan amount of £10K
If you have any adverse, or poor credit, you can still raise funds with a business loan. Credit score would only affect interest rates and loan terms.
Lenders may request specific documentation throughout the process; however, the usual basic information required will include the last six months of bank statements, the most recent filed accounts (if applicable), and basic details about the director and the business.
Our team will request this information through our secure technological platform, allowing for a safe and efficient upload of all documents.
By joining years of expertise with our in-house intelligent lending technology, we are able to quickly match your business to the best product and the right lender for your circumstances, even if you have struggled in the past, in a simple and straightforward way.
On top of that, we provide advice and support through the entire process. Arranging a finance facility can take time. We assist you in cutting through the unnecessary and focusing only on what needs to be done.
We make it easier for you to raise commercial finance for your project or business. As we're not tied to specific commercial finance lenders, our concern is what's best for you.
It’s typically used for day-to-day expenses like payroll, inventory, rent, or marketing costs.
Loan amounts depend on your business’s revenue and financial profile, typically ranging from £5,000 to £500,000.
Unsecured loans don’t require collateral, but some lenders may request assets if the loan amount is higher.
Approvals can be quick, it is possible to have a turnaround with funds in your account within 24h, depending on the lender and the complexity of your application.
Late repayment may result in fees, and your credit score could be impacted, depending on the lender's terms. It’s essential to ensure that your business can meet the repayment schedule.
