Working capital finance
Funding for the gap between money going out and money coming in: stock, wages, a VAT bill, a quiet quarter. Sized on your bank turnover, decided in-house.
What working capital finance is for
Working capital is the difference between what the business has coming in over the next year (cash, stock, invoices owed to you) and what it has going out (suppliers, wages, tax, loan repayments). When the ratio slips below about 1.2:1 the business starts running on timing luck: one late-paying customer or one early VAT bill and the wages run is tight. Working capital finance closes that gap deliberately, either as a term facility repaid by fixed weekly direct debit over 6 to 18 months, or as a revolving facility you draw on and repay as needed, paying only for what you use.
Unlike a merchant cash advance, it's sized on bank turnover rather than card takings, so it suits trades, wholesalers, B2B services and anyone paid mainly by transfer or invoice.
How it works
Four steps, with the timings we actually work to.
Apply online
Business name, what you do, roughly what goes through the till, the amount and what it's for. No credit search at this stage.
A specialist calls you back
Confirms it's a fit, tells you which product suits the numbers and what it would typically cost. If it isn't a fit, you hear that now.
Decision in writing
Send six months of bank statements (open banking takes under a minute), card statements if you take cards, and photo ID. The offer shows the amount, the total to repay and how it's collected.
Funds in your account
E-sign, and the money goes to the business account. Repayments start as agreed.
| Monthly bank turnover | £90,000 |
| Facility limit | £40,000 |
| Drawn in September | £30,000 for Q4 stock |
| Cost on the drawn amount | 1.4% per month, flat |
| Repaid over | 16 weekly direct debits |
| Total repayable on £30,000 | £31,680 |
| Undrawn £10,000 | No cost |
| Redraw in March | Available once repaid |
Illustrative figures using typical market terms; not a real customer. Your offer depends on your trading and our assessment.
Eligibility
- UK limited company or LLP
- Trading six months or more
- £10,000 or more a month in bank turnover
- Six months of business bank statements
- A clear reason for the facility and a route to repaying it
- Covering ongoing monthly losses: that's a structural problem working capital won't fix, and we'll say so
- Sole traders and partnerships below £25,000
- Insolvency or administration
Which product for which gap
| The gap | Best fit | Why |
|---|---|---|
| Seasonal dip (a quiet January) | Merchant cash advance | Repayments fall with takings, so the quiet month doesn't carry a fixed bill |
| Customers paying late | Revolving working capital | Draw against the delay, repay when the invoices land |
| Stock for a busy season | Term working capital or advance | Fixed cost, clear end, repaid from the sales it funds |
| A VAT or tax bill | Short-term finance | 3 to 12 months, one-off, done |
| Wages while a contract ramps up | Revolving working capital | Weekly draws matched to payroll |
| A permanent shortfall | None | Finance delays the conversation; margins or costs are the real issue |
What owners use it for
What we'll ask, and why
Two things decide a working capital facility: whether the gap is genuinely a timing gap, and whether the business can repay from normal trading once it closes. Six months of bank statements answer both. We'll ask what the money is for and when the cash it bridges arrives; if the honest answer is "the business loses money every month", we'll tell you that funding isn't the fix. A director's personal guarantee is standard; there is no charge over property, and applying runs no credit search.
A direct lender, in plain terms
Our own underwriters. Your file isn't sold on to a panel or passed around a market; the people who assess it are the people who fund it.
The total on your offer, nothing before funds are released. No application fee, no broker commission built into your price.
Finance to UK limited companies and LLPs for business purposes is not regulated consumer credit. The legal name of the funding entity is on every offer document.
Questions about working capital finance
What is a good working capital ratio?
Above 1.2:1 is comfortable for most small businesses; 1:1 means every pound due out in the next year is matched by a pound coming in, with no cushion. Below 1:1 the business is relying on timing.
Term or revolving: which should I choose?
Term if the need is one-off and the amount is known (a stock order, a tax bill). Revolving if the need repeats (late payers, payroll timing) and you'd rather pay only for what you draw.
How quickly can I draw?
First drawdown in as little as 24 hours after signing. Redraws on a revolving facility are same-day once part has been repaid.
What does it cost?
A fixed cost on the drawn amount, typically 1% to 2% per month flat, agreed before you draw. Nothing on undrawn amounts.
Do I need to take card payments?
No. Working capital is sized on bank turnover, which is why it suits trades, wholesalers and B2B firms.
Can I use it to pay HMRC?
Yes. VAT and corporation tax are among the most common uses.
Is a personal guarantee required?
Yes, from a director. No charge over property.
Will applying affect my credit score?
No. The enquiry runs no search. Any search at offer stage is with your consent.
What if my business is seasonal?
Tell us the pattern. Repayments can be weighted to your busy months, or a merchant cash advance may fit better if most income is card-based.
Other ways we fund UK businesses
See what your business could be offered
Two minutes to tell us about the business. A funding specialist calls you back, usually the same working day, with a straight answer.