Working Capital & Cash Flow Loans for Small Businesses

Working capital is the cash that keeps day-to-day operations running — paying staff, suppliers and bills while you wait for customers to pay. When timing gets tight, working capital and cash flow loans bridge the gap.

Common cash-flow gaps

• Slow-paying customers and long invoice terms.
• Seasonal dips in income.
• Buying stock ahead of a busy period.
• Covering payroll, VAT or tax bills.

Your main options

• Short-term unsecured loan: a lump sum repaid over months — see our fast funding guide.
• Revolving credit facility: draw and repay flexibly, paying interest only on what you use.
• Invoice finance: unlock cash tied up in unpaid invoices.
• Merchant cash advance: repay as a share of card takings.

When to use working capital finance

It is ideal for temporary, recurring gaps — not for funding a permanent loss or a long-term asset. For big one-off purchases, a term loan usually costs less. Match the finance type to the problem: short gap, short facility.

Keep cash flow healthy

Pair finance with good habits: invoice promptly, chase debtors, negotiate supplier terms, and forecast 13 weeks ahead so you borrow proactively rather than in a panic.

This article is general information, not financial advice. Eligibility, rates and terms vary by lender and your circumstances. The Loans Hub is a finance broker, not a lender.