FINANCE OPTIONS

Understanding Working Capital Loans

Working Capital Loans are short-term financial products designed to help UK SMEs manage their day-to-day operational expenses, such as payroll, rent, and inventory purchases. These loans provide vital support, offering solutions to maintain smooth business operations through invoice financing, business loans, and more.

Secure up to £500,000 in Working Capital Loans with Funding Agent.

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What are the benefits of Working Capital Loans?

The primary benefit of Working Capital Loans is the flexibility they offer to SMEs, allowing businesses to manage cash flow effectively. With potential borrowing limits of up to several million pounds and decision times as rapid as 1-2 days, these loans are ideal for meeting urgent financial needs without long-term commitments. Our platform specialises in providing quick and reliable access to these funding solutions.

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Improved cash flow
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What are the different types of Working Capital Loans?

Invoice Financing

Eligible for UK businesses with B2B invoices and a turnover of at least £50,000. Loan amounts from £5,000 to several million are available, typically for a 1-3 month term.

Invoice Financing

Invoice Financing allows businesses to bridge cash flow gaps by advancing up to 90% of the invoice value. Rates range from 1.5% to 3.5% monthly. Decisions are made within 2 to 5 days. It's especially useful in industries like manufacturing, where small businesses can manage operations smoothly.

Business Overdrafts

Available for businesses with a bank account and minimum turnover of £100,000. Overdrafts can go up to £50,000 with ongoing terms.

Business Overdrafts

Business Overdrafts provide revolving credit reviewed annually. Interest rates are 3% to 6% above base rates. They are processed in 1-3 weeks, ideal for sectors like retail, providing a buffer for unexpected expenses.

Merchant Cash Advances

For sectors like hospitality with card transactions of at least £5,000 monthly. Advances of £5,000 to £300,000 are typically repaid in 6-12 months.

Merchant Cash Advances

Merchant Cash Advances offer cash based on future sales, with factor rates of 1.1 to 1.5. Quick approval within a day or two makes it perfect for immediate needs like facility upgrades in hospitality sectors.

What is a Working Capital Loan?

Application and Approval Process

The application for Working Capital Loans typically involves providing financial records, business history, and bank statements. Initial decisions can be made as quickly as 1 day, especially for merchant cash advances. Our streamlined application process ensures rapid service delivery for your business.

Regulations and Compliance

Working Capital Loans are regulated by the FCA, ensuring fair lending practices. Compliance with these regulations is integral to our service, highlighting our commitment to transparency and consumer protection.

Borrowing Capacity and Rate Information

Borrowing capacity varies with factors like turnover and sector risk. Amounts range from £5,000 to several million, with rates affected by credit scores and invoice quality. Our competitive offerings ensure attractive rates and quick access to funds.

FAQ’S

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