A working capital loan is a short-term loan that is taken out to facilitate the day-to-day running of everyday operations so that you can focus on business growth
Working Capital
Even the most successful business can find it tough – cash can be tied up in everyday expenses, eating into profits. These expenses are called working capital. When short term funding is required quickly, a working capital loan could be the answer. Use Finpoint search and compare lenders who specialise in working capital loans.
Funding
Up to £250,000 typically unsecured
Repayment Terms
Short term 3 months to 3 years
Typical rates?
Varies depending on your risk profile, amount, term and whether secured or not
All interest rates quoted are indicative only as rates will only be confirmed based on the risk profile for each deal. Risk category associated with the deal. This is based on primarily debt survivability and security available for the loan
Advantages of Working Capital
A working capital loan can be accessed quickly, often within 48 hrs for business owners to meet foreseen and well as unforeseen capital expenditure
Keeps your business running smoothly and plugs short term gaps in your budget
Helps businesses if they want you take on a new contract
You need a cash cushion in your seasonal sales cycle particularly important in the hospitality and leisure sectors
Things to be aware of…
Lenders may require security but not always
Often working capital and will be tied to a business owners personal creditworthiness missed or defaulted payment of previous loans will
Interest rates can be higher to reflect the short term nature and higher risk
