Keep your business running smoothly and improve your cash flow with a working capital loan. Request your quote today!
It’s speedy, cost-free, and won’t influence your credit score.
Before delving into how a working capital loan can benefit your business, it’s essential to define what working capital is.
Working capital refers to the difference between current assets and current liabilities. In other words, it is the cash available to your business after accounting for the flow of money in and out over the upcoming 12 months. It’s a vital indicator of your business health and serves as a reflection of your financial stability to suppliers, customers, and investors—essentially, it’s visible on your balance sheet.
A working capital ratio of less than one could indicate potential liquidity issues for your business, so it’s crucial to stay informed about what constitutes a healthy working capital ratio in the FAQs below.
A working capital loan is a type of short-term business financing that allows you to enhance your operational cash flow. This financing can be used for various purposes, such as paying employee wages, purchasing inventory, or bridging cash gaps between invoices.
Think of a working capital loan as a tool to unlock cash for your short- to medium-term operational needs. However, it’s important to note that this type of financing is not ideal for long-term investments.
Many business owners experience stress over delayed payments. In fact, according to a survey by Barclays, nearly 25% of respondents reported losing sleep due to late payments, and 26% expressed anxiety impacting their well-being. Poor cash flow is a significant barrier for UK businesses, with 10% citing it as a reason for stunted growth.
Don’t let cash flow issues hold your business back; fast-working capital loans could be the solution you need!
Working capital loans can assist businesses in meeting various operational needs, including:
For seasonal businesses, a working capital loan can provide the necessary funds to navigate periods of lower income.
Working capital loans are typically repaid within 12 months, making them short-term financial solutions. The amount you can borrow will depend on various business factors, one of which is your credit score.
If your credit score is strong, you may qualify for an unsecured working capital loan of up to £250,000. This type of loan may require a personal guarantee to signal your confidence in your business to the lender.
Alternatively, you can opt for a secured working capital loan, which requires collateral. This option might be ideal if your credit score is less than stellar, and your borrowing capacity will depend on the value of your assets.
As with any financial option, it’s crucial to consider the pros and cons of working capital loans.
Advantages:
Disadvantages:
Applying for a working capital loan is a simple process. Fill out our brief application form, providing basic information about your business, and we will process your details promptly.
Once processed, we’ll connect you with suitable UK lenders who can assist you quickly. You can view their offerings along with details like potential borrowing amounts, and you’re under no obligation to accept any quotes you receive.
Take your time to compare your options, and if you find an offer that suits your needs, simply respond to initiate the next steps directly with the lender.
We understand how challenging it can be to find the right financial solutions for your business.
Our mission at Lender Portal is to assist companies in discovering and comparing the best loan rates available.
Our comparison tool saves you valuable time that you’d otherwise spend searching through multiple lender websites.
Begin your search for business funding today!
Disclaimer: Lender Portal is a credit broker that connects UK businesses with a range of lenders. We work closely with businesses and their trusted advisors to provide access to business finance solutions. While we do not provide loans or other financial products ourselves, we can introduce you to a selection of providers that may be suitable for your needs. We may receive commission from the lenders we introduce you to, should you proceed with an application, and applicants must be at least 18 years old and meet specific terms and conditions to be eligible for our services. Guarantees and indemnities may be required by some lenders as part of their lending criteria. Lender Portal is registered with Companies House (Company Number: 15871826) and is based at 71-75 Shelton Street, Covent Garden, London WC2H 9JQ. By using our services, you acknowledge that you have read and understood these terms and conditions, and agree to be bound by them. ICO number: ZB727660
