Working capital – the cash available to cover day-to-day operations – is something most businesses have to actively manage. Payment terms stretch.
Seasonal demand creates gaps. A new contract requires upfront investment before income arrives. When cash flow tightens, a working capital loan can bridge the gap without requiring equity to be raised or long-term debt to be taken on.
The UK market offers a wide range of options – from relationship-led facilities backed by major financial groups to fully digital lenders with same-day decisions and broker platforms that compare dozens of lenders through a single application. The right choice depends on how much you need, how quickly, and what your business’s trading history looks like. Below are five providers worth considering.
1. Novuna Business Cash Flow
Best for: established SMEs looking for a relationship-led facility backed by a major financial group
Novuna Business Cash Flow is part of Mitsubishi HC Capital UK PLC, one of the UK’s largest leasing and finance groups. That parent company backing gives it significant financial depth and a broad range of product options for UK SMEs.
Novuna’s lending proposition is built around businesses that need structured access to working capital alongside a broader financial relationship. Its working capital loans are designed for established SMEs that need funding to cover operational costs, bridge gaps between invoicing and payment, or support periods of growth or transition.
For businesses that also need faster access to smaller amounts, Novuna offers quick business loans alongside its core working capital lending – meaning clients can access different funding structures depending on the urgency and scale of their requirement.
The business serves a range of sectors including manufacturing, logistics, professional services, and recruitment, and its approach is relationship-led – clients work with a named contact throughout the process.
Who it works for:
Established SMEs looking for a relationship-led working capital loan backed by a major financial group
Businesses that may also need invoice finance or asset-based lending under a single provider relationship
Companies in manufacturing, logistics, recruitment, or professional services
Those that want a structured, relationship-managed facility with a dedicated point of contact
2. Funding Circle
Best for: UK limited companies wanting a fixed-rate loan with a fast online decision
Funding Circle was founded in 2010 and has helped more than 125,000 UK businesses borrow £17 billion to date. It has worked with the British Business Bank since 2013, including as one of the largest providers of Growth Guarantee Scheme-backed loans.
Its working capital loan product offers borrowing from £10,000 to £750,000 at fixed rates from 6.9% per year. Fixed-rate pricing means monthly repayments are predictable for the duration of the term, which suits businesses that want to budget with certainty. There are no fees for early repayment.
The application process is designed to be straightforward – businesses can check their eligibility in 30 seconds without affecting their credit score, complete a full online application in around seven minutes, and receive a decision in as little as one hour. Funds are typically paid out within 48 hours of accepting an offer.
To be eligible, applicants need to be a UK limited company. Funding Circle’s underwriting considers the business’s financial profile and credit history to determine the rate offered.
Who it works for:
UK limited companies looking for a fixed-rate working capital loan between £10,000 and £750,000
Businesses that want a fast, fully online application with a decision in as little as one hour
Those that value predictable fixed monthly repayments and no early repayment fees
Companies looking for Growth Guarantee Scheme-backed lending options
3. iwoca
Best for: businesses that want flexible borrowing with interest charged only on what they draw
iwoca has lent to more than 100,000 businesses across the UK since its founding in 2012, with over £4 billion in credit advanced to date.
Its working capital loan – the Flexi-Loan – allows businesses to borrow from £1,000 to £1,000,000 on terms from one day to 60 months. Interest is charged only on the amount drawn and for the time it is held, rather than on the total facility. There are no early repayment fees, which means businesses that pay down a loan ahead of schedule will pay less overall.
Applications are completed online and decisions are typically made within 24 hours. The minimum requirement to apply is six months of trading history, and eligibility is assessed based on the business’s financial data, which can be shared through accounting software integrations.
iwoca’s loan can be used for any working capital purpose – payroll, stock, tax obligations, supplier payments, or covering short-term cash flow gaps – without restrictions on use.
Who it works for:
Businesses that have been trading for at least six months and want flexible access to between £1,000 and £1,000,000
Those that want to pay interest only on what they draw and for the time they hold it
Companies that prefer a fully digital application and decision process
Businesses that want no early repayment fees and the option to repay ahead of schedule
4. Fleximize
Best for: businesses that want repayment holidays and top-up flexibility built into the loan as standard
Fleximize has provided funding to thousands of UK SMEs since its launch in 2014, offering working capital loans of between £10,000 and £500,000 on terms of 3 to 60 months. Interest rates start from 0.9% per month.
Repayment holidays – periods during which repayments can be paused – and top-ups (additional borrowing on top of an existing loan) are available as standard features rather than exceptions requiring separate applications. There are no early repayment penalties, and interest is charged only for the period the loan is held.
Eligibility criteria include a minimum of six months’ trading history and a minimum monthly turnover of £5,000. Loans are available on both unsecured and secured bases, with unsecured borrowing up to £250,000 and secured up to £500,000 for businesses in England and Wales. Applications are completed online and a decision can typically be reached within 24 hours.
Each applicant is assigned a dedicated relationship manager who handles the application and remains the point of contact for any subsequent lending.
Who it works for:
UK limited companies and LLPs with at least six months’ trading and £5,000+ monthly turnover
Businesses that want repayment holidays and top-up flexibility built into the loan as standard
Those that want an unsecured working capital loan of up to £250,000 without pledging assets
Companies that prefer working with a named relationship manager throughout the process
5. Tide (Funding Options)
Best for: businesses that want to compare options across a broad lender network through a single application
Tide operates Funding Options, a lending marketplace that connects UK businesses to more than 80 lenders through a single application. Rather than lending directly, Tide matches businesses to credit options from across its lender network based on the business’s profile and funding requirement.
Through the platform, businesses can access working capital loans, revolving credit facilities, invoice finance, asset finance, and other products – with borrowing available from £1,000 up to £20 million depending on the product and lender. Tide has provided more than £1.6 billion in funding to over 43,000 UK businesses. Eligibility checks use a soft credit search, meaning they do not affect a business’s credit score.
The platform is accessible through the Tide app, which also provides business current account services. Once a business submits its details and funding requirement, Tide’s team reviews the application and presents matched credit options from across the lender network. Depending on the product and lender, funding can be available within approximately 24 hours.
The marketplace model means businesses can compare options from multiple lenders without making separate applications to each – which can be useful for businesses that want to understand the range of products and rates available to them before committing.
Who it works for:
Businesses that want to compare working capital loan options across a broad lender network in a single application
Those that want access to a wide range of products – from term loans to revolving credit – in one place
Companies that already use Tide for business banking and want to manage lending in the same platform
Businesses of varying sizes, given the wide range of amounts available across the network
Key questions to ask before taking a working capital loan
When approaching working capital loan providers, businesses should consider the following before committing:
What is the total cost of borrowing? Request a worked example showing the total amount repaid, not just the headline rate. Factor in arrangement fees, early repayment terms, and whether interest compounds.
What are the eligibility requirements? Minimum trading history and turnover thresholds vary significantly between providers. Confirm these before investing time in an application.
Is the loan secured or unsecured? Unsecured loans are faster to arrange but may carry higher rates. Secured loans require collateral and a longer process but may offer better terms for larger amounts.
What flexibility is built in? Check whether the facility allows early repayment, top-ups, or repayment holidays – and whether these features come at an additional cost.
How quickly are funds available? If the requirement is urgent, confirm the time from application to funds in account. This varies considerably between providers.
Conclusion
Working capital loans are a practical and widely available tool for UK businesses managing short-term cash flow gaps or funding operational growth. The five providers above cover a range of approaches – from relationship-led facilities backed by major financial groups, to fully digital lenders with same-day decisions, to broker platforms that give access to dozens of lenders through a single application. The right choice depends on the size of the requirement, how quickly funds are needed, the business’s trading history, and whether flexibility in repayment is a priority.
It is worth comparing more than one provider before committing. Most lenders can provide an indicative cost illustration without affecting your credit score – and comparing those on a like-for-like basis is the most reliable way to assess total value.
The content of this article is provided for general information only and should not be relied upon as financial advice. Businesses should take independent advice before committing to any finance product.
Read more:
Top Working Capital Loan Providers (UK)