What is a cashflow loan?

Put simply, a cashflow loan is short-term finance designed to help a business cover immediate working capital needs. It bridges the gap between outgoing payments (payroll, suppliers, rent) and incoming cash (sales receipts, delayed invoices or seasonal takings).

Cashflow loans are typically repaid over a short period — from a few weeks up to 24 months — and are intended for operational use rather than long‑term asset purchases or property finance.

Common uses include paying suppliers to secure a contract, hiring temporary staff, buying seasonal stock, smoothing payroll while awaiting large customer payments, or dealing with an unexpected bill.

Cashflow lending can be secured or unsecured and comes in many product forms. It offers speed and flexibility, although short-term products can carry higher costs than longer-term lending — so it’s important to compare options.

Common types of cashflow finance

• Short-term business loans: Fixed‑term loans (often 3–24 months) with regular repayments. Good for a single, identified shortfall.
• Invoice finance (factoring/discounting): Lenders advance a percentage of outstanding invoices so you access the cash tied up in sales immediately.
• Merchant cash advances (MCAs): A lump sum repaid via a fixed percentage of card takings. Fast but can be expensive if not carefully structured.
• Revolving credit facilities / lines of credit: Draw, repay and redraw up to a set limit — flexible for ongoing working capital needs.
• Supplier or purchase order finance: Funding specifically to pay your suppliers so you can fulfil a large contract or scale production.
• Business overdrafts and credit cards: Short-term, flexible cover for smaller working capital needs; typically cheaper for small, transient needs but limits apply.

Each product suits different cashflow patterns — that’s why matching the right type to your business matters.

How much can I borrow and what does it cost?

UK businesses can access cashflow finance from roughly £10,000 upwards. The maximum depends on lender appetite, your turnover and the product type — some invoice finance and revolving facilities can reach hundreds of thousands.

Costs vary by product and lender: interest rates, arrangement fees, appraisal fees, factoring charges or fixed service fees for invoice finance. Merchant cash advances use a factor rate instead of a standard APR, so direct APR comparisons may be misleading.

Representative costs are impossible to give without business details. Rates depend on your company’s trading history, sector, turnover, security offered and director credit profiles. Always request a full breakdown of total cost from any lender you speak to.

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Who can get a cashflow loan? Eligibility checklist

Typical applicants are limited companies and established SMEs across industries such as construction, hospitality, retail, manufacturing and logistics. We do not arrange sole trader or professions-specific lending.

Common eligibility requirements include:

• Minimum trading history (varies by lender — some accept newer companies).
• Minimum turnover thresholds for certain products (depends on lender).
• Business bank statements and evidence of receivables or contracts.
• Director information and possibly personal guarantees for some facilities.

Businesses with adverse credit may still find specialist lenders; a single enquiry helps reveal the most suitable partners for your situation.

Pros and cons — is a cashflow loan right for your business?

Benefits

• Fast access to working capital so you can keep trading and take opportunities.
• Flexible use — cover payroll, stock, supplier payments or scaling costs.
• Product variety — you can match product type to your cashflow profile.

Drawbacks

• Short-term products can be more expensive than longer-term loans.
• Tight repayment schedules can strain cashflow if income doesn’t pick up as planned.
• Some lenders may ask for personal guarantees or security.

Always compare total cost, term length and repayment profile before agreeing. If in doubt, get multiple quotes via our free enquiry so you can weigh options.

How UK Business Loans connects you with lenders

UK Business Loans acts as an introducer. We don’t lend or give regulated financial advice — we match your business to lenders and brokers who specialise in business finance. Here’s how the process works:

1. Complete our short enquiry form (usually under 2 minutes): basic company details, amount required (from £10,000), and finance purpose.
2. Smart match: We compare your request against our panel of lenders and brokers and pick partners likely to be able to help based on sector, product and credit profile.
3. Introductions made: Selected lenders/brokers are introduced to you. They contact you to discuss options, request documents and give indicative terms—often within hours.
4. Compare offers: Review multiple proposals and choose the one that best fits your cashflow needs. You’re free to accept or decline — there’s no obligation.

The enquiry is just that — an enquiry. It will not automatically trigger credit searches and does not commit you to borrow. Our service is free to use; we earn revenue when introductions lead to successful matches.

Looking for more detail on specific product options? Read our guide to cashflow loans for deeper product-level information.

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What to expect after you submit an enquiry

Typical timeline and steps:

• Initial matching and introductions — often within hours during business days.
• Lender/broker contact — they’ll outline indicative terms and ask for documents (bank statements, management accounts, invoice examples or purchase orders).
• Formal proposals — once underwritten, lenders send written terms for you to compare.
• Funds paid — when you accept an offer and return signed documentation, funds can be released quickly (timing varies by product and lender).

Note: the initial enquiry does not affect your credit file. Lenders may perform credit checks later in the application process if you choose to proceed.

Real-world examples

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Risks, transparency and questions to ask lenders

Key risks include affordability strain if repayments fall due before cash inflows arrive, personal guarantees, and hidden fees. To protect your business, ask lenders these questions:

• What is the total cost including all fees and charges?
• Is there a representative APR or an equivalent cost metric for this product?
• Are personal guarantees or security required?
• What are the consequences of missed or late payments?
• Are there early repayment charges?

Get clear written terms before accepting an offer and compare multiple proposals so you choose the most suitable structure.

Frequently asked questions

Is UK Business Loans a lender?

No. We are an introducer that connects you with lenders and brokers. We do not provide regulated financial advice or lend money directly.

Will submitting an enquiry affect my credit score?

No. Making an initial enquiry does not affect your credit file. If you apply with a lender later, that lender may perform credit checks.

How quickly will a lender contact me?

Many partners respond within hours during business days, though response times vary by provider and the information provided.

Can I apply with bad credit?

Possibly. Some specialist lenders consider imperfect credit histories. Submit an enquiry so we can identify partners who may be able to help.

What documents do lenders typically ask for?

Commonly: recent business bank statements, management accounts or statutory accounts, details of invoices/contracts, and ID for company directors. Exact requirements vary.

Is the introduction free?

Yes. Using UK Business Loans to be introduced to lenders and brokers is free and carries no obligation to borrow.

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Summary & next steps

Cashflow loans provide fast working capital to keep your business trading, cover seasonal swings or take advantage of growth opportunities. UK Business Loans helps you find the most appropriate lenders and brokers quickly — just complete a short enquiry (it’s free and non‑binding) and we’ll match you to suitable partners who can provide quotes and next-step advice.

Ready to compare options? Get Started — Free Eligibility Check

Important: UK Business Loans is an introducer and does not provide regulated financial advice or lend money. All finance proposals and terms come directly from the lenders or brokers who contact you. Always read lender terms carefully before accepting an offer.