Cashflow loans (3–60 months) — typical terms explained

Summary: Most cashflow loans we help arrange run between 3 and 60 months. Short terms (3–12 months) suit emergency working capital, invoice bridges and merchant cash advances; 12–36 months are common for SME working capital and project smoothing; 36–60 months let businesses spread repayments for larger short‑to‑medium term funding. Terms actually offered depend on lender, business profile, security and the funding purpose. Complete our short enquiry for a Free Eligibility Check and we’ll match you to lenders/brokers who can provide tailored quotes.

Note: Submitting the enquiry form is not an application — it’s information we use to find lenders and brokers who can help your business. Get Quote Now — Free Eligibility Check: Get Quote Now

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Quick answer — standard cashflow loan terms (summary)

Most cashflow loans arranged through our panel carry terms between 3 and 60 months. Lenders choose specific term lengths based on the funding purpose and risk profile:

• 3–6 months: emergency bridging and short seasonal gaps.
• 6–12 months: short working capital and project bridging.
• 12–36 months: the most common SME cashflow and small growth loans.
• 36–60 months: longer short‑to‑medium term loans where monthly instalments are stretched to reduce pressure.

Which exact term you’ll be offered depends on the lender, your cashflow, security, business sector and trading history. If you want tailored options quickly, complete a Free Eligibility Check: Get Quote Now

What lenders mean by “3–60 months” — typical breakdown

3–6 months — emergency or short seasonal gaps

• Use cases: urgent payroll, one‑off supplier invoices, short seasonal stock purchases.
• Repayment: often bullet, weekly or compressed instalments.
• Typical sizes: from approximately £10k up to £150k (varies by lender).
• Providers: alternative lenders, merchant cash advance providers, invoice finance.

6–12 months — short bridging and working capital

• Use cases: smoothing cashflow between contracts, bridging a delayed payment, small capital purchases.
• Repayment: usually monthly instalments; some short‑term fees or facility renewal charges may apply.
• Typical sizes: roughly £10k–£250k depending on turnover and security.

12–36 months — common SME cashflow loans

• Use cases: seasonal smoothing, hiring, small expansion, contract financing.
• Repayment: monthly amortising payments are typical — lower monthly cost than short terms.
• Typical sizes: £10k up to £1m+ depending on lender appetite and collateral.

36–60 months — longer short‑term loans

• Use cases: larger working capital needs, vehicle fleets, spreading costs of measured investments.
• Security: may require asset security or personal guarantees for larger amounts.
• Repayment: usually monthly amortisation; longer terms reduce monthly pressure but increase total interest paid.

Repayment types you’ll see

Cashflow loans offer several repayment structures to suit business income rhythms:

• Monthly capital + interest: most common for 12–60 month loans.
• Interest‑only with balloon capital: used when a large inflow is expected at term end.
• Weekly/bi‑weekly repayments: popular where revenue is frequent (retail, hospitality).
• Bullet repayment: single repayment at term end — used in some invoice or MCA facilities.
• Revolving facilities: such as overdrafts or invoice finance lines that can be reused as drawn.

Typical loan sizes and security across 3–60 month terms

Term range	Typical loan size	Security	Sector examples
3–6 months	£10k–£150k	Often unsecured, invoice‑backed	Hospitality, seasonal retail
6–12 months	£10k–£250k	Often unsecured or light security	Trades, small manufacturers
12–36 months	£10k–£1m+	Unsecured or asset/personal security	Construction, services, manufacturing
36–60 months	£25k–£2m+	Likely security or stronger covenants	Vehicle fleets, larger working capital

These ranges are indicative. Individual offers vary by lender and business circumstances.

Costs and APRs to expect (clear, non‑misleading)

Costs vary significantly between specialist lenders and brokers — always ask for a full breakdown. Typical cost elements include:

• Interest rates: can range from higher single digits to mid‑teens or more depending on risk, security and term.
• Arrangement/transfer fees: 0–5% one‑off in many cases.
• Exit or early repayment fees: some lenders charge penalties — check terms.
• Other charges: admin fees, monitoring fees, late payment charges.

Figures above are indicative only. Lenders and brokers will provide exact APRs and total cost illustrations once they assess your business.

How lenders decide term length and offer

Lenders consider multiple factors when setting term and structure:

• Purpose of funds (working capital vs asset purchase).
• Business cashflow forecasts and affordability.
• Credit history and time trading.
• Security availability and director guarantees.
• Industry risk, seasonality and client concentration.

Sector examples — how term needs differ

• Construction: 12–36 months to bridge contracts and fund materials.
• Hospitality & Retail: 3–12 months for seasonal stock and payroll smoothing.
• Manufacturing: 12–36 months for raw material purchase for long contracts.
• Agriculture: 3–12 months for seasonal cycles and harvest financing.

For sector‑specific options, we match you with specialists who know your market — submit a Free Eligibility Check: Free Eligibility Check

Learn more about different forms of working capital and related products on our cashflow loans page: cashflow loans.

How UK Business Loans helps — match, compare and get a fast quote

Our role is introduction and matchmaking — we do not lend. The process is designed to be fast and simple:

1. Complete our short enquiry (typically under 2 minutes).
2. We match your request to selected lenders and brokers suited to your sector and needs.
3. Partners contact you with tailored quotes and terms — usually within hours to 48 hours.
4. You compare offers and decide — there’s no obligation to proceed.

Submitting the enquiry is not an application; it simply enables partners to make informed offers. Start now with a Free Eligibility Check: Get Quote Now

Important: UK Business Loans is an introducer. We do not lend or provide regulated financial advice. We share your enquiry with selected lenders and brokers so they can contact you with offers. All lending decisions and terms are determined by the lender.

What you’ll need for an enquiry

Providing clear, accurate details speeds up matching and quotes. Typical information requested:

• Company name, address and trading history.
• Annual turnover and recent months’ bank statements.
• Loan amount required and preferred term.
• Reason for funding (e.g., stock, payroll, contract finance).
• Basic director details for contact and consent checks.

Tip: a simple one‑page cashflow forecast or recent management accounts helps brokers provide better quotes quickly.

Common mistakes businesses make when choosing a term

• Picking the shortest term to reduce total interest but ignoring monthly affordability.
• Overlooking arrangement, renewal or exit fees making a “cheap” rate expensive overall.
• Not aligning repayment frequency with income (e.g., monthly payments for weekly takings).
• Failing to disclose seasonality or one‑off dips — leads to later covenant stress.

Quick worked examples

Example 1: A café needs £25,000 to cover winter months. A 6–12 month loan with weekly repayments eases monthly pressure and matches revenue cadence.

Example 2: A manufacturer needs £150,000 to fulfil a 24‑month contract. A 24–36 month amortising loan spreads cost across the contract lifecycle and matches expected receipts.

These are illustrative only. For precise quotes based on your circumstances, complete our short enquiry: Free Eligibility Check

FAQs

Will submitting an enquiry affect my credit score?

No. Making an enquiry via UK Business Loans does not affect your business credit score. Lenders may carry out credit checks if you agree to proceed with an offer.

Can young companies get cashflow loans?

Yes — specialist lenders and brokers sometimes work with businesses that have limited trading history, although they may require higher rates, securities or director support.

How fast will I receive offers?

Many businesses receive initial contact within hours; tailored quotes commonly follow within 24–48 hours depending on complexity and the amount requested.

Do you charge for the matchmaking service?

No. Our service is free for businesses to use. We are paid by our lender/broker partners when a transaction completes.

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Ready to explore terms (3–60 months) for your business?

Complete our short, no‑obligation enquiry and we’ll match your business with lenders and brokers who can offer cashflow solutions tailored to your needs. It takes under 2 minutes.

Get Quote Now — Free Eligibility Check

Important: UK Business Loans is an introducer. We do not lend or provide regulated advice. We will share your enquiry with selected lenders and brokers so they can contact you with tailored offers.

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If you’d like help preparing your bank statements or a simple cashflow forecast before submitting your enquiry, contact our team when you complete the form and we’ll advise what to include to speed up offers.

1. Will submitting an enquiry affect my credit score?
No — submitting an enquiry via UK Business Loans is not an application and does not affect your credit score, although lenders may carry out checks later with your consent.

2. How long will I wait to receive loan offers or tailored quotes?
You’ll often get initial contact within hours and full tailored quotes commonly within 24–48 hours depending on complexity.

3. What loan amounts and term lengths are available for cashflow loans?
We match businesses to lenders offering cashflow loans typically from around £10,000 up to £1m+ with terms usually between 3–60 months depending on purpose and lender.

4. What repayment types will I see for cashflow loans?
Common repayment structures include monthly capital+interest, weekly/bi‑weekly payments, interest‑only with a balloon, bullet repayments and revolving facilities like invoice finance.

5. What APRs and costs should I expect for a cashflow loan?
Costs vary by lender and risk but typically range from higher single digits to mid‑teens APR, plus potential arrangement, exit or admin fees which will be disclosed in offers.

6. What documents and information do I need for a Free Eligibility Check?
Provide basic company details, turnover, recent months’ bank statements, desired loan amount/term and the reason for funding — a one‑page cashflow forecast or management accounts speeds up matching.

7. Can start‑ups or young companies get business loans through UK Business Loans?
Yes — many specialist lenders and brokers work with start‑ups and young companies, though they may require higher rates, security or director support.

8. Does UK Business Loans charge for the matchmaking service and is the enquiry an application?
No — our service is free, and the enquiry is not a lender application but information we use to match you with suitable lenders and brokers.

9. Will lenders require security or personal guarantees for cashflow loans?
Security and guarantees depend on loan size, term and risk profile — short small loans are often unsecured while larger or longer loans commonly require asset security or personal guarantees.

10. Are the lenders and brokers you introduce FCA‑regulated and trustworthy?
We work with reputable, UK‑based brokers and lenders who operate under FCA guidelines and are selected for sector expertise and fair treatment.