A working capital loan could help your business with its day to day expenses. Compare these working capital lenders to find the right rate for your company and apply today.
Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.
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Prepare a business plan
Working capital loans can be an option to borrow the money when your business experiences cash flow problems. Work out how much you need to borrow and how long you'd need to repay. Once you have decided a working capital loan is the right for your business find the cheapest unsecured business loan deal by comparing a number of companies.
2
Compare your options
Have a look through the options to find the best working capital business loan for your needs. Terms and repayments can vary between providers so check any conditions attached to the loan then pick a deal that offers the cheapest working capital loan for your business.
3
Apply and save
You may be able to get a cheaper business loan by applying online and some lenders and brokers only ever operate digitally, so to make sure you find the best working capital loan deals comparing quotes on the internet is a must. Once you've decided on the provider you want, simply apply.
Businesses experiencing cash flow problems, can opt for working capital loan to cover the cost of your short term expenses, such as employee salaries, utility bills or rent.
This is why a working capital loan is usually short term, meaning you can usually borrow the money over 12 months or less.
When comparing a working capital loan, make sure that you can borrow the amount you need from each lender, and whether they offer a repayment term you that your business can afford.
You need to apply to get a tailored Annual Percentage Rate (APR) from a lender, which will also tell you how much your repayments will be.
Before you apply for a capital loan, you can check the representative APR offered by each lender to give you an idea of the rates on offer.
The lower the APR on a working capital loan, the cheaper it costs in interest. However, if you miss any payments you could end up paying hundreds in interest penalties.
Use this comparison to find lenders that offer this type of loan, and only apply for the best loan when you have found the best deal.
There are several types of business expenses you can use a working capital loan for, including:
Wages: to help if you have a shortfall with your business expenditure and need to pay your employees
Stock and equipment: to help pay for stock or business equipment before seasonal demands increase
Rent: to help cover the rent of your business premises if your business outgoings exceed your income
As working capital loans are designed to be short term, they may not be the cheapest choice if you need to borrow a large amount as your repayments will be higher.
If you do not think a working capital loan suits what you need, consider a different type of business loan instead.
If you need a cash injection for your short term expenses, a working capital loan could be suitable for your needs.
However, the APR is often higher than other loans, making repayments more expensive.
Some lenders specify what you can borrow money for with a working capital loan. This can range from wages, to inventory and marketing, so check before you apply.
If you are not sure whether you should apply for a working capital loan, you could also consider these alternative ways to borrow for your business.
Working capital loans prove many businesses a life line when they experience cash flow issues. For example, businesses that are affected by seasonality, can use a working capital loan to tide them over during lean months.
Other advantages include:
Quick access to credit. Most working capital loan applications get approved within 24 hours.
Not secured. Capital loans are not secured to any of your business assets, so you don't risk losing them if you're unable to repay your loan.
Short terms. Working capital loans are short term, last only up to a year at most. This means that you'll pay off the loan fairly quickly and won't be spending money on interest payments for years to come.
If you want to take your business to the next level but don’t have the funds to do so, you could consider getting a business loan.
Find out how to get a business loanWith the right type of borrowing you could pursue business opportunities that would otherwise pass you by, here's how.
Read more on borrowing for your businessIf you need funds to help your business grow or expand, a business loan could offer the solution you need. Here is how they work and how to get the right loan for your business.
More on how business loans workComparing business loans could save you money. Our multiple award-winning comparison service makes sure you get the lowest rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.
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Last updated: 7 March, 2022
