Working capital loans for small businesses

Give your company the working capital it needs to be competitive. Learn how Spotcap’s flexible approach can help.

Unsecured, without collateral

Free non-committal application

Decision within 1 working day

No fees for repaying early

Unsecured, without collateral

Free non-committal application

Decision within one working day

No fees for repaying early

A better take on business loans

Access to finance is at the heart of a healthy business. A Spotcap working capital loan provides financial flexibility.

Up to £250k of finance

Flexible 1-15 month term

Funds available within one working day

Only pay interest on what you use

Apply in three simple steps

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Tell us about yourself and your business

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Receive your decision within one working day

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Accept your offer and receive funds

Flexible working capital loans

Spotcap's business loans are provided in the form of a credit line. Here is the process and how it works.

1. APPROVAL

If your application is successful, we will offer you a line of credit. Your funds can be in your account in two working days.

2. DRAW DOWN

Drawdowns on your obligation free credit line become separate business loans. Each business loan has the same interest rate.

3. COMMITMENT PERIOD

Your credit line is available for one month. You may drawn down as much or as little as you need in this time.

4. REPAYMENT

Your loan is repaid monthly over an agreed period of time (between one to 15 months). You can repay your loan early without penalty after the first month.

5. RESCORING

When your credit line expires you may request a rescore. A rescore reassesses your information and determines if we can offer a larger credit line.

Our business loans suit many purposes

  • Manage operating cash flow

  • Invest in new equipment

  • Increase  sales by offering new products

  • Refinance existing loans

We’re trusted by thousands of businesses

Working Capital Loans Quotation

Finance from Spotcap enabled us to grow. Having the support of someone believing in your vision just left us feeling great.

Jennifer Hart

Director of Everyday Cashmere

Clear, transparent pricing

  • Amount
    £ 100,000
  • Time
    12 months

£9,168

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 24.2%, 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

  • Amount
    £
  • 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 24.2%, 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.

Understanding working capital

What is working capital?

  • Working capital is the cash available to cover the day-to-day expenses of running a business, including paying staff, replenishing stock and covering overheads. It is often considered a measure of business efficiency and the short-term financial health of a business.
  • Simply put, working capital is a business’ current assets minus their current liabilities. These amounts are obtained from your company’s balance sheet. For example, if your company’s balance sheet reports current assets of £600K and current liabilities of £400k then your company’s working capital is £200k.

How is working capital defined and measured?

  • Working capital, defined as the amount of assets minus the amount of liabilities, is not as clear cut as it may appear. The calculation can easily be skewed depending on the industry your business services and the suppliers you are working with. For example, it is important to consider the types of current assets and how quickly these can be converted into cash. Depending on the timeline, more working capital may be needed in order to stay in business when processes begin to slow down.
  • It is also important to consider factors such as the nature of the company’s sales and how the customer will pay, as this can ultimately determine the latency of your cashflow. Put simply, if a business is to calculate their working capital, it should involve more than simply subtracting current liabilities from current assets.
  • However, even with high amounts of working capital, a company can experience problems with cash flow if current assets are not converting to cash. Staying on top of your business’ current assets allows for regular insight into the cash coming in and out of your business.

What can I use a working capital loan for?

  • A working capital loan covers the day-to-day expenses of a business, including accounts payable, salaries and office costs. SMEs affected by seasonal fluctuations rely on these loans as it helps them cover periods of slower business activity.
  • Because the cash available in your business can easily fluctuate over a short period of time, a working capital loan needs to be flexible. Ideally, a working capital loan shouldn’t generate borrowing costs unnecessarily, but it should be dependable source of cash.
  • Although a typical working capital loan is not suited to buying longer-term assets such as machinery, it is the simplest way to ensure your business has adequate working capital to run smoothly and prevent hurdles in the future. A line of credit model allows businesses to draw down funds as they need them, without incurring any additional costs or fees.

Is a working capital loan right for my business?

  • Small businesses often feel the effects of payment gaps and unforeseen expenses more than large corporations. For a small business owner, a delayed invoice can result in serious cash flow problems. A working capital solution can act as a safety net for businesses that know that might need finance, but don’t know how much they will need or when. Working capital loans are normally short-term and repaid once a business hits its busy season or receives outstanding payments, and therefore no longer needs the money.
  • A line of credit is a type of working capital solution. This model allows for businesses to have easy access to an obligation free business loan in a matter of minutes. It can be used as a short term solution to cash flow issues and unexpected expenses, or to help a business manage their working capital.

How to apply for a loan from Spotcap

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Tell us about yourself and your business

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Receive your decision within one working day

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Accept your offer and receive your funds

Qualification criteria

UK business

Annual turnover of +£250k

Trading for at least two years

Profitable business

Business loan calculator

Monthly Repayment

  • Amount
    £
  • 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 24.2%, 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.