Last updated: 27 Aug 2026

Cash flow loans

Cash flow loans close the gap between money going out of your business and money coming in.

  • See what you could borrow, with no impact on your credit score

  • Compare cash flow loans, credit lines, invoice finance and more from our panel of 130+ UK lenders

  • Options funded in as little as 24 hours once approved

  • A dedicated funding specialist guides you through every option

Why choose Capitalise for cash flow loans?

  • 200,000 UK businesses trust us

  • Business credit data powered by Experian

  • £2bn in funding approved

  • FCA regulated since 2016

What is a cash flow loan?

A cash flow loan is a type of business funding assessed mainly on your turnover, trading history and cash flow, rather than a specific asset you can offer as security. It's a broad term that covers a fixed term business loan as well as closely related options like a revolving credit line, invoice finance and a merchant cash advance.

Most businesses use a cash flow loan to cover payroll, stock and supplier bills during a quiet period, bridge the wait for a customer payment, or manage a seasonal dip in trade, rather than to fund long term growth like buying property.

How does cash flow lending work?

Rather than valuing an asset, a lender assesses your business's cash flow by looking at your bank statements, trading history, monthly turnover and credit profile to decide how much you could realistically afford to repay. Depending on the option you choose, you then either receive a lump sum you repay in fixed instalments, or a credit limit or invoice advance you draw down and repay as your cash flow allows. Because the underwriting is based on how your business actually trades rather than what it owns, cash flow loans tend to be faster to arrange than a secured loan, and they're often the more accessible route for businesses that don't hold significant property, stock or equipment to use as collateral.

What are the different types of cash flow loans?

There's more than one way to fund a cash flow gap, and the right choice depends on how much you need, how fast you need it and how your business gets paid.

Type of cash flow loan

How it works

Best for

Working capital loan

A lump sum repaid in fixed instalments, usually over 1 to 24 months

A one off cash flow gap or a planned cost

Revolving credit facility

A reusable credit line you draw down, repay and reuse without reapplying

Ongoing or unpredictable cash flow needs

Invoice finance

An advance against unpaid customer invoices, up to 90% of their value

Businesses waiting on slow paying customers

Merchant cash advance

An advance repaid as a percentage of future card sales

Retail and hospitality businesses with strong card sales

VAT loan

Short term funding to cover a VAT bill, or an advance on a delayed HMRC refund

A VAT deadline or a refund you're waiting on

Business overdraft

A flexible buffer on your business bank account, arranged directly with your bank

Small, short term, unpredictable gaps

Are cash flow loans secured or unsecured?

Most cash flow loans are unsecured, or secured only against the specific thing they're tied to, such as your unpaid invoices or future card sales, rather than a broader asset like property or machinery. This makes them faster to arrange than a secured loan, though rates can be a little higher because the lender is taking on more risk without a hard asset to fall back on. Some lenders will ask for a personal guarantee, particularly on larger facilities, which means a director agrees to personally repay the debt if the business can't. This varies by lender and by how much you're looking to borrow, so it's worth checking the terms of each offer before you accept.

Am I eligible for a cash flow loan?

Most lenders on the Capitalise panel assess:

  • Whether your business is registered and trading in the UK

  • Your trading history, though minimum requirements vary by lender and by product

  • Your monthly turnover and recent cash flow

  • Your business and personal credit history

What documents do you need to apply for a cash flow loan?

Having these documents ready speeds up your application, whichever type of cash flow loan you're looking for:

  • 6 months of business bank statements

  • Your last 1 to 2 years of filed accounts, if available

  • Proof of ID for each business director

  • Proof of address dated within the last 3 months

How do you apply for a cash flow loan with Capitalise?

  • Green circle with a white number "1" in the center.

    Tell us about your business

    We'll ask about your turnover, what's driving the gap and how much you're looking to raise.

  • Green circle with white number "2" in the center.

    Get matched with lenders

    Your application is matched against our panel of 130+ lenders who fit your business and the type of finance you need.

  • Green circle with the white number 3 in the center.

    Speak to a funding specialist

    A dedicated specialist talks you through the options, so you choose what actually fits your business.

  • White number 4 on a solid green oval background.

    Lenders review your application

    Your funding specialist sends your application to multiple matched lenders, who assess it and decide whether to make an offer.

  • White number 5 centered on a green circular background.

    Compare your offers

    Review the rate, term and total cost of each offer with your funding specialist before deciding.

  • Number 6 in white centered on a green circle.

    Get funded

    Once you accept an offer and confirm your ID, funds can reach your account in as little as 24 to 48 hours.

What are the advantages and disadvantages of a cash flow loan?

  • Advantages

    • Because they're assessed on trading performance rather than a physical asset, cash flow loans are often quicker to put in place than a secured loan.

    • You don't need property, stock or equipment to offer as security, which opens cash flow loans up to businesses that are asset light.

    • Whether it's a one off cost, an ongoing need, or invoices you're waiting to be paid, there's a type of cash flow loan built around it.

    • Options like a revolving credit line or invoice finance can grow alongside your sales, without a fresh application each time.

  • Disadvantages

    • Without a hard asset backing the facility, rates are sometimes higher than a loan secured against property or equipment.

    • Products like a merchant cash advance or a facility drawn against invoices move with your sales, which suits some businesses but makes budgeting harder for others.

    • Some lenders ask a director to personally guarantee larger facilities, particularly where there's no other security in place.

    • If you're funding one specific asset, such as a vehicle or a piece of machinery, asset finance is usually a cheaper and better suited option.

Which businesses use cash flow loans?

  • Retailers and wholesalers

    Build up stock ahead of a busy trading period without waiting on cash flow to catch up.

  • Construction and trade businesses

    Cover materials and wages before a client payment comes through.

  • Hospitality businesses

    Manage seasonal dips in footfall without cutting back on stock or staff.

  • Recruitment and staffing agencies

    Cover payroll between placing a candidate and getting paid by the client.

  • Ecommerce and card led businesses

    Bridge the gap between paying suppliers and receiving customer payments.

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