What is a Working Capital Loan?

A working capital loan is short-term business cash flow finance used to cover day-to-day operating costs — payroll, rent, inventory, utilities and supplier payments — rather than long-term investment. It bridges the timing gap between money going out and money coming in. Seven Hills Capital Group searches the whole UK lending market to match your cash flow need to the fastest, most appropriate product available.

You borrow a short-term lump sum to cover immediate operational costs

Terms typically range from 3 to 24 months

Repayments are fixed or flexible depending on the product and lender

Once repaid, the facility closes — or can be renewed if needed

Pros

• Fast access to cash — some alternative lenders approve within 24 hours
• Covers immediate costs without disrupting long-term plans
• Available to businesses with shorter trading histories than mainstream banks require
• Can be unsecured for smaller amounts

Things To Consider

• Higher interest rates than long-term business loans
• Short repayment periods can create pressure if revenue does not recover as expected
• Not suitable for long-term investment or asset purchase
• Repeated reliance on working capital loans can indicate underlying cash flow issues worth addressing

How Seven Hills Capital Group Could Help Your Business

Every business situation is different. The illustrative examples on our case studies page are based on common scenarios we see from UK business owners and landlords - showing how the right finance product, found through a whole-of-market broker, can make a real difference.

How quickly can I get a working capital loan?

Some alternative lenders can approve and fund working capital loans within 24–48 hours for established UK businesses. Seven Hills Capital Group works specifically with lenders that prioritise speed for cash flow products — we go straight to the right one for your situation rather than making multiple applications.

How much can I borrow on a working capital loan?

Working capital loans typically range from £5,000 to £500,000 depending on your turnover, trading history and lender appetite. We will assess your situation and identify the realistic maximum you are likely to qualify for before any application is made.

Is a working capital loan the same as a business overdraft?

No. A working capital loan is a fixed lump sum repaid over a set term. A business overdraft is a revolving facility you draw on as needed. Both serve similar short-term finance purposes but work differently — we will advise which is more appropriate for your specific situation.

Can a startup get a working capital loan?

Some lenders will consider early-stage businesses, though options are more limited and rates may be higher. Startups under 12 months old are often better suited to startup loan products. Seven Hills Capital Group will be honest about what is realistic for your stage of trading rather than wasting your time on unsuitable applications.

What can I use a working capital loan for?

Payroll, rent, utilities, supplier payments, inventory, tax bills and any other operational business cost. Working capital loans cannot typically be used for long-term asset purchase — for that, equipment finance or a business term loan is more appropriate and usually cheaper.