- Who it's for
- UK Ltd companies, PLCs and LLPs needing to smooth cash flow or fund growth
- Typical amounts
- £5,000 up to £1,000,000
- Typical terms
- 3 months to 5 years, or revolving facilities with no fixed end date
- Minimum turnover
- £100,000 a year to use Lending Box
- Security
- Often unsecured with a personal guarantee; some products linked to invoices or card takings
Indicative only. Subject to lender assessment and approval.
Who it's for
- Businesses with seasonal trading patterns, needing to fund quiet periods or stock up for busy ones.
- Companies waiting on customer payments while still needing to pay suppliers and staff.
- Growing businesses whose working capital needs increase faster than profits can fund internally.
- Businesses wanting a flexible buffer rather than a single lump-sum loan tied to one purpose.
How it works
- 1You tell us about the gap — how much, how often, and what's driving it (seasonality, growth, slow-paying customers).
- 2We look at your bank statements to understand your cash flow pattern, not just a single month's snapshot.
- 3We match you with products suited to the pattern: a term loan for a one-off gap, a revolving facility for repeat needs, or invoice finance if slow payers are the issue.
- 4A specialist talks through the options and total costs before you choose a lender to proceed with.
Common working capital structures
There's no single "working capital loan" — it's really a goal that several different products can serve, each suited to a different pattern of need.
- Unsecured term loan — a lump sum repaid over a fixed period, suited to a one-off or seasonal gap.
- Revolving credit facility or business credit card — draw and repay repeatedly up to a limit, suited to ongoing or unpredictable needs.
- Invoice finance — advances cash against unpaid invoices, suited to businesses with slow-paying commercial customers.
- Revenue-based finance — repaid as a percentage of card takings, suited to retail and hospitality businesses with variable income.
Matching the product to the cause
Identifying why the gap exists usually points to the right product.
- If customers pay slowly, invoice finance tackles the cause directly rather than just covering the symptom.
- If trading is seasonal, a facility that can be drawn only when needed avoids paying for capacity you don't use.
- If the gap is a one-off (a large order, a new contract's setup costs), a term loan matched to that specific need is usually simplest.
- If income is unpredictable and card-based, revenue-based finance that flexes with sales can ease the pressure.
Managing working capital proactively
Finance can smooth a gap, but it works best alongside good cash flow management rather than as a substitute for it.
- Forecast cash flow a few months ahead so gaps are anticipated rather than a surprise.
- Review payment terms with customers and suppliers regularly.
- Keep management accounts up to date — lenders, and you, make better decisions with current numbers.
- Avoid stacking several short-term facilities at once, which can compound repayment pressure.
How a broker helps
Because working capital needs can be met by several very different products, comparing them properly matters. As a whole of market broker, we look at the pattern behind your request and point you towards the structure most likely to fit, not just the first product available. Our service is free to your business; we're paid a commission or finder's fee by the lender if finance completes, as set out in our Broker Terms.
Eligibility
- A UK limited company, PLC or LLP (not sole traders or partnerships).
- Annual turnover of at least £100,000.
- Usually at least 6–12 months of trading.
- A business bank account showing the income and outgoings pattern.
- Directors willing to give a personal guarantee, for most unsecured products.
Documents you'll need
- 3–6 months of business bank statements.
- Latest filed accounts and, ideally, management accounts.
- A breakdown of the cash flow gap: timing and amounts.
- Details of key customers or contracts, if relevant to invoice finance.
- Photo ID and proof of address for directors.
Advantages
- Keeps the business trading smoothly through gaps that would otherwise cause missed payments or stress.
- Several structures are available, so the finance can be matched to the actual pattern of the gap.
- Revolving facilities can be drawn and repaid repeatedly, rather than needing a fresh application each time.
- Can free up cash to take on growth opportunities rather than just survive quiet periods.
Things to weigh up
- Using finance to cover a recurring gap can mask an underlying pricing or cost problem that's worth addressing directly.
- Revolving facilities can be easy to lean on continuously, increasing ongoing cost.
- Some products (like invoice finance) involve your customers being aware a third party is involved.
- As with any borrowing, repayments need to be affordable even in a slower month.
Worked example (illustrative)
A garden centre turns over £500,000 a year but most of its trade happens in spring and summer, leaving tight cash flow over winter months.
Rather than one large loan, a specialist suggests a revolving credit facility of £30,000 that can be drawn down over quieter months and repaid once spring trading picks up.
Using the business loan calculator below as a guide, drawing £20,000 for 5 months at an illustrative 1.5% a month works out at roughly £300 a month in interest while drawn, repaid in full once seasonal income returns. The real cost depends on the lender's own pricing.
Business loan calculator
Monthly repayment
£2,307.25
- Total repayment
- £55,373.91
- Total interest
- £5,373.91
Representative example: borrowing £50,000 over 24 months at 10% a year would cost £2,307.25 a month, £55,373.91 in total, including £5,373.91 interest.
Illustrative only. Your actual rate depends on your circumstances. Indicative only. Subject to lender assessment and approval.
Frequently asked questions
Related guides
Lending Box helps UK businesses access business finance, working directly with businesses and their trusted advisers. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 or over, and terms and conditions apply. Guarantees and indemnities may be required. Lending Box can introduce applicants to a number of providers based on each applicant's circumstances and creditworthiness. We can also make insurance introductions. Lending Box will receive a commission or finder's fee for arranging such finance and insurance introductions. Broker Terms