How does working capital funding work in the UK?
Working Capital loans can be raised up to £500,000 and deposited into a business account within 48 hours of application. Facilities can be arranged separate to any corresponding CBILS applications which may be currently underway. Furthermore, most loans are typically unsecured, but for companies suffering from a poor credit score they may need to sign a personal guarantee.
Interest rates on working capital funding generally vary depending on the lender. To learn more about how working capital funding works, you can speak to one of our account managers by calling us on 01244 207276.
Why do businesses apply for working capital funding?
A business often applies for working capital funding to help grow specific areas of the company but does not have the required working capital to do so. Working capital finance provides an opportunity for businesses to seek the investment they need to make their company better.
Who can apply for working capital funding?
Any business seeking to boost its working capital can apply for working capital funding. Working capital loans can be used by any business, from any industry, for any purpose – making them a very flexible option. They’re also available for businesses with bad credit.
What are the benefits of working capital funding?
- Funds can be used for any business purpose.
- Options available for almost every circumstance, including bad credit.
- Funding decisions typically made within 24 hours.
- In most cases, loans can be settled during agreement without penalty.
- Separate from existing bank facilities.
- A dedicated account manager who handles the application from start to finish.
- Loans are typically unsecured.
- E-sign documents allow for same-day transfer of funds.
How can I apply for working capital funding?
To apply for working capital funding you can call one of our account managers at 01244 207276. Alternatively, you can use the contact box at the bottom of the page, one of our account managers will then contact you following the submission.
When you apply, one of our account managers will lead you through the application from start to finish. This ensures all the right measures are taken and business owners can ask any questions they may have about funding.
How long does it take to process a working capital funding application?
Working capital funding applications are often very quick and can be completed within 48 hours. Funding decisions are typically made within 24 hours of the application with the money being directly transferred into the business account within a day.
What is working capital?
Working capital is the money that a business can safely spend after accounting for all of the cash coming in and going out within the next 12 months. This means that the money that forms working capital is quickly accessible so it can be used to capitalise on opportunities such as investment and contracts.
Working capital is different to cash flow. Cash flow provides an insight into how much money a business makes at any given time and is a day to day reflection of the business. Whereas working capital includes how much money the business is due to receive and how much money the business owes. Therefore, working capital provides more insight into the company.
How is working capital calculated?
To calculate working capital, the equation is:
Working capital = current assets – current liabilities.
Current assets = Money coming in i.e. payments due via invoices.
Current liabilities = Money going out i.e. bills, suppliers, rent.
Why is working capital important?
Working capital is important as it indicates how healthy a business is in the short term. Working capital is useful for assessing how well a business will cope during slow trading periods, repaying short term debts and any unexpected costs. Working capital is also used for investment purposes as well such as buying new equipment, starting new contracts and much more.
Furthermore, working capital is also a really good indicator to potential trading partners and suppliers that your business is healthy and well operated. This is key when trading for businesses in the long-term.
Why choose JPM Capital for working capital loans?
JPM Capital is a credit broker which can raise working capital loans up to £500,000 to businesses across the UK. Our experienced account managers are dedicated to helping our clients find the right finance for them and can help secure finance within 48 hours of an application.
JPM Capital is authorised and regulated by the Financial Conduct Authority (FCA), meaning that we adhere to the highest levels of compliance.
JPM Capital is also a member of the National Association of Commercial Finance Brokers (NACFB), which ensures that JPM Capital is constantly up to date with changes in the market.
What other working capital funding solutions can JPM Capital broker?
JPM Capital has a number of funding partners that they work with, which is reflected by the variety of funding options they can broker. JPM Capital can provide products that are a type of working capital and can be used for investment, including:
For tax-based funding, we can broker:
To contact us about the finance JPM Capital can broker, please call us at 01244 207276 or via our quote form at the bottom of the page.