Invoice finance alternative for SMEs in the UK

Unlocking capital tied up in your debtors doesn’t have to mean invoice factoring. We provide another way for raising working capital.

working capital | unsecured loans

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Don’t waste time with unnecessary forms and meetings.

For any purpose

Flexible, controllable funding, tailored to your specific needs.

Maximise ROI

Competitive rates and charges, with no hidden costs.

Peace of mind

Your application is processed promptly, rigorously and securely.

What is invoice finance?

Invoice finance, also known as invoice factoring, unlocks the cash tied up in your sales ledger. It’s a popular approach to easing the pressure on working capital, as you’re effectively being given an advance on funds that your business has already earned.

Banks and other traditional lenders will often direct small businesses towards invoice finance as an alternative to an overdraft. This is because the funds being lent are effectively secured against invoices that have been raised.

Convenience and flexibility are two commonly promoted features of invoice finance. These benefits are also available from an unsecured business loan from Spotcap. In addition, our finance also has the advantage of an entirely online application process.

What is invoice finance?

Invoice finance, also known as invoice factoring, unlocks the cash tied up in your sales ledger. It’s a popular approach to easing the pressure on working capital, as you’re effectively being given an advance on funds that your business has already earned.

Banks and other traditional lenders will often direct small businesses towards invoice finance as an alternative to an overdraft. This is because the funds being lent are effectively secured against invoices that have been raised.

Convenience and flexibility are two commonly promoted features of invoice finance. These benefits are also available from an unsecured business loan from Spotcap. In addition, our finance also has the advantage of an entirely online application process.

How does a Spotcap unsecured loan compare with invoice finance?

Businesses take advantage of invoice finance to boost their working capital and improve cashflow. These are the same reasons that you would choose to take a loan from Spotcap, to give yourself extra working capital.

The loans we offer are unsecured. This is made possible by our unique credit review process which combines the expertise of our specialist underwriters with our proprietary credit analysis algorithm. By looking at selected financial data, we assess the financial condition of your business.

An Invoice finance contract can be difficult to get out of early. Notice is usually required and you could be charged penalties. We make it easy for you to repay early and we don’t charge any penalty for doing so.

Can a Spotcap business loan be your alternative to invoice finance?

The extra working capital provided by a Spotcap unsecured business loan can benefit your business in many different ways. You can use it to:

  • Pay that large tax bill

    Don’t let payment of a significant VAT or Corporation Tax bill give you a serious cash flow problem. A flexible Spotcap loan can help you keep going past those major payment deadlines.

  • Avoid going into overdraft

    Some businesses use invoice finance to prevent themselves going into overdraft. A short-term loan can provide an alternative, and more flexible, approach to raising the funds necessary to stay out of trouble.

  • Upgrade your technology

    Using the latest technology can help you gain competitive advantage. A loan could allow you to invest in areas of exciting innovation such as 3D printing, the internet of things, wearable devices or artificial intelligence.

  • Emergency funding

    The best cashflow planning can’t anticipate unexpected events, such as losing a major contract. This is where you might turn to invoice finance, and where a Spotcap loan can help.

  • Cover the costs of a merger

    Businesses often grow by acquiring, or merging, with competitors or firms serving complementary markets. Even where both concerns are profitable, a merger can put pressure on working capital.

Key facts about our invoice finance alternative

The Spotcap approach is more flexible than other loans you may have encountered

Loan amount

Your business could borrow between £10k and £150k, unsecured and with no personal guarantees required.

Loan terms

Applying does not commit you to any costs. After you’ve drawn down loan funds, the repayment begin, usually over 7 to 15 months.

Criteria to qualify

We review your recent business performance. In addition, you must be based in the UK, trading here for at least 24 month, minimum turnover of £250k and a UK bank account.

Interest rates

The business loan interest rate we charge reflects market conditions and your recent business performance.Our business loan calculator lets you estimate monthly repayments and interest costs.

Spotcap business loan repayment calculator

  • Amount
    £ 100,000
  • Time
    12 months

£9,340

Monthly Repayment

For illustrative purposes only. The example shown above is based on 1.5% average monthly interest rate and 2.0% arrangement fee. The APR (annual percentage rate) is , which includes both interest and fee. The total payable amount is . This amount consists of principle, interest and fee. 
We base our decisions on several criteria and loans can only be granted to borrowers who can afford repayments. For more information about responsible lending click here or contact us directly.

Monthly Repayment

£13,752

  • Amount
    £ 150,000
  • Time
    12 months
For illustrative purposes only. The example shown above is based on 1.5% average monthly interest rate and 2.0% arrangement fee. The APR (annual percentage rate) is , which includes both interest and fee. The total payable amount is . This amount consists of principle, interest and fee. 
We base our decisions on several criteria and loans can only be granted to borrowers who can afford repayments. For more information about responsible lending click here or contact us directly.

How to apply for a business loan from Spotcap

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Sign up

Begin our online application process by entering basic business and personal information.

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Complete the application

Save time filling in form by uploading financial reports and bank statements. Alternatively, you can link your accounting software.

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Get approval

It takes just one working day to gain access to your business loan, once it is approved.