Compare Working Capital Loans

Compare Working Capital Loans

Depending on the type of business you operate, you may have periods during the financial year where you might either be very quiet, or have a lot of stock to replenish, creating seasonal inconsistencies in your accounts. By getting a working capital loan, you can cover day-to-day expenses such as payroll, rent or otherwise, especially when you have an inconsistent month of business.

Covering operational expenses in this way can be very convenient to an established business, especially for those that also have to deal with seasonal discrepancies such as the ones mentioned above. Getting a working capital loan can therefore be a necessity to make sure daily costs can be paid for, making sure there aren’t any lulls in the cashflow of your business.

If you think that a working capital loan is a viable option for your small business, start up or limited company, take a look at our comparison tables to see which lenders are offering a preferable deal for your business.

What is a working capital loan?

• Short-term business loan
• Smaller amount to cover running costs within the business
• Ideal for covering everyday costs such as payroll and rent
• More appropriate for established businesses

A working capital loan is usually a short-term borrowing option for businesses who need to cover day-to-day costs such as payroll, rent or resources. This could be because your business is having a quiet period where revenue is low, or it could be to do with having an expensive period where your current revenue stream has been exhausted.

Whether it’s a one-off or simply a seasonal issue, a working capital loan is incredibly useful to keep your business running smoothly.

How can I get a working capital loan?

Like many other types of business loan, you will have to provide relevant business details to prove that you are an established business in the UK, which may include Companies House details and your registered business address. You may also need evidence of your previous accounts, so a lender can see how much you can afford to repay on a monthly basis.

Once you have filled out the application online and supplied the relevant documents for the lender to consider, they will then make a decision on whether they will accept you for a working capital loan. The response time depends on the lender themselves but is usually as quick as 24 hours. Since it is a much smaller loan to cover running costs, the response time might even be quicker.

Am I eligible for a working capital loan?

As long as you are an operational business with evidence of your accounts and you can supply accurate business details, you should be considered for a working capital loan. The main decision is based on whether you can afford to repay the loan that you’re asking for, and if your previous revenue backs this up.

You can also check things like your business credit score to see if your previous borrowing habits have given you a good score, or a bad one. This is sometimes a consideration to see whether you have a history of making repayments on time, or you have struggled when borrowing as a business in the past.

As long as you apply for a reasonable loan that you can afford to repay over short amount of time, you will have a much better chance of being accepted for a working capital loan.