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The smarter way to find Working Capital Finance

What is working capital finance?

Working capital finance comes in many guises but, in essence, they all do the same thing: they help your business to quickly cover the cost of its daily operations through a short-term loan.

A working capital loan is designed specifically to allow you to access funds for daily operational costs, such as paying staff wages, paying utility bills or rent. It grants you time and breathing space to grow your business at times when cash flow can be hard.

The interest rates on working capital loans are typically high. This is because they carry a higher risk to the lender than financing such as secured loans, and the short repayment period means that any profit made on the loan must be realised quickly.

Why choose working capital finance for your business?

Even the most successful start-ups and SME businesses can find the going gets tough. Cash quickly gets tied up in everyday expenses or customers can be late paying for large orders.

The everyday expenses your business incurs are called working capital. If you need some funds to tide you over to pay for these, a short-term working capital loan could be the ideal solution.

Unlike traditional bank loans, working capital finance is available very quickly. It offers an easier way to access capital for the running of your business expenses.  

Typically, there is no requirement to specify or justify the reason you need the loan. This type of finance is also incredibly flexible and can be customised to meet the needs of your business. But the best news is that such loans are usually paid out within days of approval, giving you instant access to finance when you most need it.

Where can you find a specialist working capital lender?

At we can partner you with many working capital finance providers.

When you apply online for a loan with us, we match your business finance needs with providers who understand your sector and have plenty of insight into the help that your business requires.

What can you use working capital finance for?

Working capital finance, as its name suggests, is earmarked for specific uses.

It is intended to cover the daily operations of your business on a short-term basis. It can be used for things like:

  • Paying staff wages
  • Paying utility bills
  • Covering rent

It is not intended for longer term investments such as:

  • Expanding your business premises
  • Investing in plant or new tech
  • Purchasing any long-term assets

What else should you know about working capital finance?

There are many different kinds of working capital finance. Here are the most popular ones:

  • Working capital loans
  • Revolving credit facilities
  • Overdrafts
  • Invoice finance
  • Merchant cash advances
  • Trade finance (sometimes called trade credit)

You can learn more about the last three types on other pages (just follow the links), but here we’ll focus on the first three.

Depending on your credit score most types of working capital finance are available on a secured or unsecured basis.

Working capital loans

These are designed to help start-ups and SMEs keep their businesses running smoothly at moments when cash flow becomes tight.

The amount borrowed will be limited to what can realistically be recovered in the short term

Revolving credit financing

Using this option, you can borrow as much as you need, up to an agreed credit limit, whenever you need to.

Credit cards are perhaps the most common example of revolving credit financing however, unlike credit cards, you don’t need to make a purchase – you are free to simply transfer any available funds to your business accounts to use as you like.

Revolving credit differs from traditional loans in that there is no set repayment schedule and you are only obligated to pay interest on outstanding funds.

Business overdrafts

These are another finance option that can be arranged at short notice.

Traditional banks are far more cautious in offering overdraft facilities to businesses, especially to those without immaculate credit scores. Fortunately, there are now several alternative finance providers who will offer overdraft products to small and medium-sized businesses.

Working capital finance

All types of working capital finance are available from traditional banks and alternative finance providers, and you can apply to a number online today.

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