Working capital lenders offer four main kinds of cash flow finance: short-term loans, revolving lines of credit, invoice finance and revenue-based finance. A seasonal business usually suits a revolving line or a short loan timed to its peak. A growing business that sells on credit usually suits invoice finance, which rises with sales. All funding is subject to status.
At a glance
- Facility types compared
- Four: term loan, revolving, invoice, revenue-based
- Short-term loans in this page
- From up to £20,000 (Little Business Loans) to £1 million (Swiftfund)
- Revenue-based finance repayment
- A share of sales, at the lenders that publish it
- Usual agreed payment terms between businesses
- Within 60 days (GOV.UK)
- Business credit exempt from consumer credit rules
- Over £25,000, wholly or mainly for business
How do you choose between working capital lenders?
Start with why the cash runs short, then pick the facility type, then compare working capital lenders that offer it. Our guide to a working capital loan explains working capital finance in general. In short, there are four ways to fund the gap:
| Facility | How you repay | Suits a cash gap caused by |
|---|---|---|
| Short-term loan | Fixed instalments over months | A one-off cost, such as a stock order or a tax bill |
| Revolving line of credit | Draw, repay and draw again | Gaps that open and close through the year |
| Invoice finance | Settled when your customers pay | Customers who pay on 30, 60 or 90 day terms |
| Revenue-based finance | A share of future sales | Steady card or online takings with uneven timing |
Our guide to what working capital is shows how to measure the gap before you borrow, and a cash flow forecast shows when it opens.
Which working capital finance suits a seasonal business or a growing one?
The same amount borrowed behaves very differently depending on the pattern of your trade.
- Seasonal business. Cash goes out before the busy season (stock, staff, marketing) and comes back during it. A revolving line lets you draw before the peak and clear it after, paying interest only on what you use where the lender charges that way. A short-term loan timed to finish after the peak also works, as long as the repayments do not land in the quiet months.
- Growing business. Each new order needs cash before the customer pays, so the gap grows with sales. Invoice finance grows with your sales ledger, which a fixed loan does not. Revenue-based finance flexes with takings for a business paid by card or online.
- Steady business with a one-off need. A short-term loan is usually the simplest, with a fixed cost and a known end date.
A daily or weekly repayment suits a business with daily takings. It strains one paid monthly or quarterly. Ask every lender how often it collects before you compare cost.
Which lenders offer short-term cash flow loans?
Short-term working capital loans are lump sums repaid over months rather than years. The table shows each lender’s matching products in its own published words, from its profile in our directory of UK business lenders. Lenders are listed alphabetically.
| Lender | Product | Amount | Term | Repayment |
|---|---|---|---|---|
| Cubefunder | Unsecured business loans | £5,000 to £100,000 | Not published | Customised around the business’s cash flow pattern |
| Cubefunder | Short-term business loans | £5,000 to £100,000 | 3 to 12 months | Not published |
| Federal Capital | Unsecured commercial loan | £5,000 to £200,000 | 3 to 12 months | Direct debit; first repayment one month after payout |
| Fleximize | Flexiloan Lite | Not published | 3 to 12 months | Monthly repayments; penalty-free early repayment |
| Little Business Loans | Short-term business loan | Up to £20,000 | Up to 12 months | Daily, weekly or monthly instalments by continuous payment authority on a business debit card; repay early with no extra charge |
| Playter | PlayterBoost short-term cash flow loan | Up to £500,000 | 2 to 24 monthly instalments (FAQ on same page says 2 to 12, maximum 12) | Monthly instalments |
| SimplyFunded | Unsecured business loan | £5,000 to £500,000 | Fixed terms up to 26 weeks | Weekly or monthly automated repayments aligned to revenue |
| STAX | STAX Loan (unsecured cashflow loan) | £5,000 to £25,000 | 2 years as standard; capital repayments up to 7 years | Flexible repayment options; early repayment possible after 6 months by repaying the remaining capital |
| Swiftfund | Short term unsecured business advance | £10,000 to £1,000,000 | 3 to 12 months | Not published |
| Swishfund | Business loan | £10,000 to £400,000 | Up to 24 months | Equal repayments across the term (straight-line, not amortising); no early settlement fee, interest payable to the end of the month of settlement |
Repayment patterns differ widely: Little Business Loans takes daily, weekly or monthly instalments, SimplyFunded weekly or monthly, and Swishfund equal repayments across the term. Fleximize says its Flexiloan Lite is for businesses trading for at least 6 months, and Funding Circle publishes a shorter term loan of £10,000 to £750,000 over up to 12 months.
Which lenders offer revolving working capital facilities?
A revolving facility gives you a limit to draw on as needed. Our guide to business line of credit lenders compares these in more depth, including fees on undrawn balances.
| Lender | Product | Amount | Term | Repayment |
|---|---|---|---|---|
| Bizcap | Line of Credit | Up to £500k | Not published | Draw funds as needed and pay for what you use |
| Credit4 | Flexible Funding Facility | £15,000 to £30,000 | 3 to 12 months | Revolving: repay and redraw during the term; interest payable fortnightly; drawn capital repaid by end of term |
| Funding Circle | FlexiPay line of credit | £1,000 to £250,000 | Pay in 1, 3, 6, 9 or 12 months | Revolving credit facility |
| iwoca | Flexi-Loan (business loan) | £1,000 to £1 million | One to five years | A set amount each month; interest charged only on what is drawn |
| Lenkie | Grow Now, Pay Later credit facility | Up to £1,000,000 | Repayments spread over 1, 3, 6, 9 or 12 months | Instalments per invoice; each repayment tops up the available balance |
| Wayflyer | Rolling Financing | Draw up to a pre-approved credit limit | 12 month contract | Repeat access to Cash Advance or Term Loan without reapplying; you pay only for what you draw |
iwoca charges interest only on what is drawn on its Flexi-Loan. Lenkie pays supplier invoices for you and describes its facility as uncommitted. Wayflyer’s Rolling Financing gives repeat access to its advances within a pre-approved limit on a 12-month contract.
Which lenders offer invoice finance for working capital?
Invoice finance advances money against unpaid invoices and is settled when your customers pay. It suits businesses selling to other businesses on credit terms. GOV.UK guidance says agreed payment dates between businesses should usually fall within 60 days, which is the kind of wait invoice finance is built to bridge.
| Lender | Product | Amount | Term | Repayment |
|---|---|---|---|---|
| Bibby Financial Services | Invoice factoring | Not published (typically up to 85% of invoice value advanced) | Not published | Advance on issuing the invoice; balance, less agreed fees, when the customer pays; Bibby can manage credit control and collections |
| Bibby Financial Services | Confidential invoice discounting | Not published (typically up to 85% of invoice value advanced) | Not published | Advance on issuing the invoice; balance, less agreed fees, when the customer pays; you collect customer payments yourself and the facility can stay confidential |
| Kriya | Invoice finance | Facilities from £100k to £3m+; up to 90% of invoice value advanced | Contracts starting from 12 months | Your customer pays the invoice into a Kriya trust account; Kriya settles its balance and releases the rest |
| Penny | Spot invoice financing (factoring) | Invoices of £500 to £500,000 | Customer payment terms of up to 90 days accepted | Penny buys the invoice, collects payment from your customer and manages credit control; no commitment to fund the full ledger |
| Penny | Confidential invoice discounting | Invoices of £500 to £500,000 | Not published | Customers are not told; you keep invoicing and collecting; funded invoice by invoice |
| Triver | Cashflow streaming (invoice advances) | Facility up to £1 million; £100 to £100,000 per advance | Invoice payment terms of 10 to 120 days | Advance settles automatically by direct debit when your customer pays; typically 99% of invoice value advanced |
This is a selection. Our page on invoice finance companies compares more providers on advance rates, minimums and contracts.
Which lenders offer revenue-based working capital finance?
Revenue-based finance, including the merchant cash advance, is an advance repaid as a share of your future sales. Repayments rise in a strong month and fall in a quiet one. Most providers charge a single fixed fee rather than interest, so ask for the total repayable and how long it is likely to take.
| Lender | Product | Amount | Term | Repayment |
|---|---|---|---|---|
| 365 Finance | Revenue-based finance / merchant cash advance | £10,000 to £500,000 | No fixed term | A small percentage of each credit and debit card sale; no fixed monthly payments; single all-inclusive cost agreed at the start |
| Liberis | Business Cash Advance (revenue-based finance) | £1,000 to £500,000 | No fixed term; typically 6–12 months | A fixed percentage of daily sales, subject to a monthly minimum |
| Outfund | Revenue-based financing | From £10k up to £300k or £500k (its pages differ) | 3 to 12 months shown in its offer builder | A share of future sales; repayments flex up and down with revenue |
| SAPI | Payment-linked advance | £10,000 to £500,000 for companies, subject to affordability and policy; larger by exception | Not published | Fixed percentage of sales taken at source until the advance plus a one-time fixed fee is repaid; minimum monthly payment of one-twelfth of the advance if sales are low |
| Wayflyer | Cash Advance | From £10,000; up to £20m (eCommerce) or £1m (other industries) per its broker page | 3-9 month time horizon (open-ended; expected duration is estimated) | A percentage of sales, repaid daily, weekly or every two weeks; unsecured |
| YouLend | Merchant financing (revenue-based finance) | Up to £2 million | Not published | A percentage of every sale, plus a single fixed fee |
Liberis takes a fixed percentage of daily sales subject to a monthly minimum, and YouLend takes a percentage of every sale plus a single fixed fee. A monthly minimum means repayments do not fall to zero in a very quiet month.
What do working capital lenders charge, and who can apply?
Costs vary by lender and applicant, and few working capital lenders publish rates. Compare offers on the total you repay and the cash that reaches your account, not the headline rate. Lenders quote cost as an interest rate, a fixed fee or a factor rate, and our guide on how to compare business loan lenders shows how to put them on the same footing.
Lenders commonly ask for:
- Recent business bank statements, or open banking access.
- A minimum trading history and turnover, which each lender sets.
- A personal guarantee from the directors on most unsecured facilities.
- Details of existing borrowing and any tax arrears.
On regulation, credit of more than £25,000 entered into wholly or predominantly for business purposes is exempt from consumer credit regulation under the Regulated Activities Order. Sole traders and small partnerships borrowing less may have a regulated agreement.
If the gap is a tax bill, ask HMRC first. GOV.UK says you may be able to set up a payment plan to pay in instalments, and that HMRC will check the plan is affordable. Our guide to HMRC Time to Pay covers how that works.
Capzy is a credit broker, not a lender, and the lender pays us when a facility completes. We describe lenders from their published terms and do not rank them. You can check your funding options with a soft search that does not affect your credit score. A lender’s full application may use a hard search, and all funding is subject to status and lender criteria.
Sources
- Regulated Activities Order 2001, article 60C: exempt agreements, legislation.gov.uk
- Late commercial payments: charging interest and debt recovery, GOV.UK
- If you cannot pay your tax bill on time, GOV.UK
- 365 Finance: Home, 365 Finance
- Bibby Financial Services: Invoice Finance, Bibby Financial Services
- Bizcap: Home, Bizcap
- Credit4: Homepage, Credit4
- Cubefunder: Home, Cubefunder
- Federal Capital: Home, Federal Capital
- Fleximize: Homepage, Fleximize
- Funding Circle: Funding Circle UK homepage, Funding Circle
- iwoca: Small business loans, iwoca
- Kriya: Invoice finance, Kriya
- Lenkie: Home, Lenkie
- Liberis: Explore funding, Liberis
- Little Business Loans: Homepage, Little Business Loans
- Outfund: Outfund home page, Outfund
- Penny: Home, Penny
- Playter: Homepage, Playter
- SAPI: Home, SAPI
- SimplyFunded: Home, SimplyFunded
- STAX: Home, STAX
- Swiftfund: Home, Swiftfund
- Swishfund: Homepage, Swishfund
- Triver: Home, Triver
- Wayflyer: Wayflyer UK home page and FAQs, Wayflyer
- YouLend: YouLend home page, YouLend
Capzy is a credit broker, not a lender. We get paid by the lender. This page is general information, not financial, tax or legal advice. Finance is subject to status, lender criteria and affordability; rates and terms depend on your circumstances.