Compare working capital loans

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.

4 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
Swoop Business Loan
Loan amount
£50,000 to £5,000,000
Representative APR
6.85% APR
Loan term
3 months to 96 months
Simple, secure and speedy access to over 1,000 funding providers without affecting your credit rating. Team of five-star Trustpilot-rated experts to guide you through the process.
Swoop is a broker, not a lender. Minimum 1 year of trading and Minimum turnover of £200,000.
Representative Example: The representative rate is 6.85% APR (fixed) so if you borrow £100,000 over 60 months at a rate of 6.00% p.a. (fixed) then you will repay £117,670 in total.
Think Business Loans Business Loan
Loan amount
£25,000 to £1,000,000
Representative APR
6.36% APR
Loan term
1 month to 24 months
“Rated 5* “excellent” on Trust pilot. Our experts will compare multiple business finance products across 100s of lenders to find the option that is right for you. 75% of our customers receive an offer.
Think Business Loans is a credit broker and not a lender. Minimum turnover is £200,000 with 1 year trading.
Representative Example: The representative rate is 6.36% APR (fixed) so if you borrow £100,000 over 60 months at a rate of 6.36% p.a. (fixed) you will repay £116,504.71 in total.
Funding Xchange Business Loan
Loan amount
£1,000 to £5,000,000
Representative APR
10.5% APR
Loan term
1 month to 60 months
Funding Xchange is a credit broker, not a lender. Funding Xchange puts you in control of your business funding giving you access to indicative funding offers within 3 minutes.
Minimum annual turnover of £100,000, trading history of 18 months and Companies House registration are required.
Representative Example: The representative rate is 10.5% APR (variable) so if you borrow £50,000 over 24 months at a rate of 10.5% p.a. (variable) you will repay £55,650 in total.
Funding Options Business Loans
Loan amount
£1,000 to £15,000,000
Representative APR
7.38% APR
Loan term
1 month to 120 months
Funding Options is a Credit Broker and not a Lender. Their APR starts from 2.75% and has an average of 7.38%. They can help you prepare and submit your Recovery Loan Scheme application through multiple RLS accredited Lenders.
Minimum Turnover is £60,000 with 12 months minimum trading. Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Representative Example: The representative rate is 7.38% APR (variable) so if you borrow £50,000 over 24 months at a rate of 7.38% p.a. (fixed) you will repay £53,934.06 in total.

Last updated: 18 February, 2021

What is a working capital loan?

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.

Compare other types of business loans here

How to compare working capital finance

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.

Here is more information about business loans

What can you use a working capital loan for?

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.

Should you get a working capital loan?

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.

What are the advantages of working capital finance

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.

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