Compare Working Capital Loans

  • If your business needs funds to pay for everyday operational costs then you could consider a working capital loan
  • Compare specialist UK providers of working capital loans in our comparison table below
  • Find available loan amounts and terms to suit your needs and apply direct
6 products found
  • Fluidly Working Capital Loans logo
    Broker

    Fluidly Working Capital Loans

    • Check your business eligibility for products to provide you with working capital
    • Search the market quickly and hassle free, with no obligation and no hidden fees
    • Range of products including invoice finance
    • Minimum Turnover
      £50,000 p.a.
    • Available Amounts
      £15,000 to £500,000
    • Available Terms
      6 months to 5 years
  • iwoca Working Capital Loans logo

    iwoca Working Capital Loans

    • Flexible credit facilites suitable for boosting working capital
    • Early repayment with no fees
    • Dedicated account manager and decisions within 24 hours
    • Minimum Turnover
      £50,000 p.a.
    • Available Amounts
      £1,000 to £200,000
    • Available Terms
      Up to 12 months
  • Funding Xchange Working Capital Loans logo
    Broker

    Funding Xchange Working Capital Loans

    • Discover instant & personalised Working Capital offers in just 3 minutes
    • Finance your company’s everyday operational needs
    • Compare working capital lenders and find the rate right for you
    • Minimum Turnover
      £100,000 p.a.
    • Available Amounts
      £1,000 to £500,000
    • Available Terms
      1 month to 5 years
  • Swoop Funding Working Capital Loans logo
    Broker

    Swoop Funding Working Capital Loans

    • Plug gaps in your short-term budget
    • Provides financial security for unexpected costs
    • Can help you to keep your business finances running smoothly
    • Minimum Turnover
      £50,000 p.a.
    • Available Amounts
      £2,000 to £1,000,000
    • Available Terms
      3 months to 3 years
  • THINK Business Loans Working Capital Loans logo
    Broker

    THINK Business Loans Working Capital Loans

    • Find the right loan to suit your needs from a range of finance types
    • Check your eligibility without a credit check
    • Dedicated FCA regulated experts on hand to support your application
    • Minimum Turnover
      £100,000 p.a.
    • Available Amounts
      £50,000 to £1,000,000
    • Available Terms
      1 to 3 years
  • Nucleus Working Capital Loan logo

    Nucleus Working Capital Loan

    • Hassle-free, unsecured, commercial loan of up to £150,000
    • Fast – Quick decisions, receive your funding in 24 hours
    • Even out seasonal peaks and troughs in your cashflow cycle
    • Minimum Turnover
      No minimum
    • Available Amounts
      £25,000 to £200,000
    • Available Terms
      3 months to 3 years
  • Suppliers that don't offer All Business Working Capital Loans but may offer suitable alternatives:

    • Funding Circle logo
      Peer To Peer

      Funding Circle

      • Your business must have a minimum of 2 years’ trading history
      • A leading UK platform for Small Business Loans
      • Simple online application and decisions in as little as 1 hour
      • Rates from 4.3% to 12.1% per year - No early settlement fees
      • Minimum Turnover
        No minimum
      • Available Amounts
        £10,000 to £500,000
      • Available Terms
        2 to 6 years
    • EJ Finance logo
      Broker

      EJ Finance

      • Application-to-offer within 24 hours
      • To be contacted within 3 minutes of applying
      • Access to over 200+ lenders, covering all sectors
      • Minimum Turnover
        £50,000 p.a.
      • Available Amounts
        £10,000 to £10,000,000
      • Available Terms
        1 months to 10 years
    • Fleximize logo

      Fleximize

      • Voted "Best Business Finance Provider" at the British Bank Awards 2020
      • Industry-leading flexibility - top-ups, repayment holidays, no hidden fees
      • Interest charged on a reducing balance, repay early and only pay for the time you had the loan
      • Rates from 0.9% per month (10.8% per annum), with no additional fees
      • Minimum Turnover
        £60,000 p.a.
      • Available Amounts
        £5,000 to £500,000
      • Available Terms
        3 months to 4 years
    • NatWest Rapid Cash - Invoice Finance logo

      NatWest Rapid Cash - Invoice Finance

      • Eligibility Criteria Apply
      • Rapid Cash is an innovative, high tech solution to business financing
      • Borrow against your unpaid invoices and get a flexible line of credit from £25,000 to £1 Million
      • You could be approved within 48 hours. Security and guarantee required. Fees may apply
      • Minimum Turnover
        £100,000 p.a.
      • Available Amounts
        £25,000 to £1,000,000
      • Available Terms
        No min/max terms
    • Portman Asset Finance logo
      Broker

      Portman Asset Finance

      • Business finance broker with specialist sector experience, offering fast and flexible finance solutions
      • Access over 40 leading UK lenders
      • Over £750 million in funding provided to thousands of small-to-medium sized UK businesses
      • Minimum Turnover
        No minimum
      • Available Amounts
        £10,000 to £10,000,000
      • Available Terms
        Up to 5 years

Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. You can use the options above the table to order it according to various criteria.

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Last updated on 30 March 2021.

Working Capital Loans FAQ

Working capital loans can offer a buffer for seasonal businesses and those looking to secure their cash flow. Could a great deal on a working capital loan help your company?

What is working capital?

Working capital is the money that a company uses in its day-to-day operations. To calculate working capital in a business we simply subtract the current liabilities from the current assets. Some businesses struggle to maintain adequate levels of working capital due to factors such as seasonal fluctuations in income.

What is a working capital loan?

A working capital loan allows a business to borrow funds to help it meet regular day-to-day operational costs, such as payroll, ordering stock and paying the bills. They are not generally used to make large, long-term investments but can help to regulate cash flow in the short-term.

What type of business takes out a working capital loan?

Many types of businesses find that they sometimes lack the working capital they need to meet their operational responsibilities and requirements. This is often the case when a business has major fluctuations in their income as a result of cyclical sales or a seasonal business model, for example. A manufacturing firm might make the majority of its sales in preparation for supplying retailers for the holiday season, or a hotel may make almost all of its money during the summer season, but needs to continue to operate throughout the winter with very little income. These are situations where a working capital loan can help.

How does a working capital loan work?

Businesses can borrow up to around £500,000 through their working capital loan and the money can arrive in their bank account within days, once they have been approved. The repayment period can be anything from a few months to a few years, depending on requirements. Interest rates for this type of loan can be on the high side as they are riskier than some other types of business loan from the lender’s point of view.

What are the lending criteria for a working capital loan?

Obtaining a working capital loan is easier if you, personally, have a strong credit rating as many lenders will look at this when making a decision as to whether your business is a good bet for a working capital loan. If you have a strong credit history you may be offered an unsecured loan, while those in a less favourable position will need to put some assets forward as security for the loan.

What are the advantages of taking out a working capital loan?

Perhaps the main advantage is the speed at which the cash arrives in your account, allowing you to quickly plug the gap in your working capital before greater problems occur. There are also plenty of providers lending in this way these days, with alternative lenders offering even more choice for borrowers. Another advantage is that, as opposed to taking funding from an equity investor, you get to keep complete control of your business while still enjoying the benefits of a major cash injection.

What are the drawbacks to working capital loans?

When you take out a working capital loan, you must commit to repaying the loan within a certain amount of time and, depending on your credit history, this may be a reasonably short amount of time. You may also be asked to provide security in the form of assets or a personal guarantee before borrowing and the interest rates may be high, especially for an unsecured working capital loan.

What can I spend a working capital loan on?

Within reason, you can spend the money how you like. Your lender is likely to allow you free rein, providing you do what you need to do to keep your business thriving so you can repay the loan on time and in full. Although the name ‘working capital loan’ suggests you can only spend the cash on your daily operational requirements, you can use the cash to fund growth and expansion plans, such as investment in new stock or refurbishments that need to be made.

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