Cash Flow & Working Capital Funding

What cash flow funding is for

A cash flow loan solves a timing problem. The work is won or the money is owed; it simply has not arrived yet. Typical uses: payroll on a long contract, materials before a stage payment, a VAT or tax bill, or covering a quiet quarter in a seasonal business.

What it is not for is covering sustained losses. If the gap has no end date, borrowing makes the problem larger rather than smaller, and we will say so rather than arrange it.

How working capital finance differs from asset finance

Most of what we arrange is secured on a tangible asset — a van, a machine, a forklift. Cash flow finance usually is not, which is why it is assessed on the strength of the business and costs more. If you own assets outright, asset refinance is frequently a cheaper route to the same cash.

That is worth checking first. Releasing capital against machinery you already own often costs materially less than an unsecured facility of the same size.

Short-term business loans

A short term business loan is the simplest form: a lump sum repaid over three to eighteen months. Straightforward, quick to arrange, and priced according to the risk the lender is taking without security.

What lenders assess

Bank statements, filed accounts, current trading, existing commitments, and how the facility will be repaid. That last point matters most — a lender wants to see the specific money that will clear the borrowing, not a general hope of improvement.

What we will tell you

If asset refinance would be cheaper, we will point you there instead. If the gap looks structural rather than temporary, we will say that too. Arranging expensive short-term borrowing for a business that needs a different conversation is not doing you a favour.

See also: tax and VAT funding for a specific liability, or asset refinance if you own equipment outright.