Working Capital Finance UK: Revolving Credit, Invoice Finance & Short-Term Loans

Working capital finance funds the gap between when money goes out and when it comes back in. That gap is what kills otherwise healthy businesses, and the right product depends on what is creating it.

If the problem is slow-paying customers, invoice finance is usually the answer. A lender advances up to 90% of the face value of unpaid invoices, then collects when your customer pays and releases the balance less their fee. Instead of waiting 60 or 90 days, the cash is with you within 24 to 48 hours of raising the invoice.

If the need is more general, a revolving credit facility works like a business overdraft: a limit you draw on and repay repeatedly, paying interest only on what you have drawn. That suits seasonal peaks, a large stock buy, or a payroll month where a big contract payment is running two weeks late.

Short-term loans sit between the two. A fixed amount for a fixed period, usually three to eighteen months, suited to a single known outlay rather than an ongoing fluctuating need.

Lenders price working capital on turnover, trading history and the quality of your debtors. The high street has pulled back its appetite here, so the lenders we place with regularly are the challenger banks and specialist facilities that move faster and hold more flexible credit criteria. We do not decide the rate or the approval, the lender does, but putting the right product in front of the right lender is where the work is done.