Working capital loans

  • Working capital finance up to £150k
  • Tailored to your business needs
  • Kick-start your business today
  • 24-hour approval, 90% approval rate
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Working capital loans: the definition

In many cases, companies are unable to generate the revenue needed to meet expenses incurred by day-to-day business operations. To help improve their current finances or to get things moving again, a working capital loan could be the solution. When exactly does a working capital loan fit your business needs? What is the definition of working capital and why is it important for a business? Let’s start at the beginning.

Working capital of a business is the capital used in its day-to-day trading operations, also called the net current assets. Working capital can be calculated as the current assets minus the current liabilities. If you want to see whether your company has enough short term assets to cover its short term debt, the working capital ratio can be used (current assets / current liabilities). If the ratio is less than 1, the working capital is negative, where anything above two means that the company is not investing excess assets. A high capital ratio isn’t always good, because it could indicate that you have too much inventory or you are not investing your excess cash. The ratio is important because it measures a firm’s ability to pay off its current liabilities with current assets. It shows the liquidity of your company.

When does a working capital loan suit your business?

Working capital finance is designed to boost the working capital available to a business. Different businesses use working capital finance for a variety of purposes, but the general idea is that they help manage your cash flow. It can be used for specific growth projects, such as taking on a bigger contract, marketing, buying stock or investing in a new market. If your business is in need of immediate funding to help kick-start your business, we recommend applying for our working capital loan.

We can ensure that you have access to the funding you need to help you realise your business goals. In combination with our competitive interest rates you can rest assured that you won’t be taking on more than you can manage.

Working capital loan requirements

When it comes to applying for working capital loans, most lenders will require you to have capital already in place, or a healthy business cash flow. At Merchant Money, all we require is your (limited, partnership or sole trader) business to be UK registered, with a minimum turnover of £100,000 per annum and a minimum of one year’s accounts. You can apply online and we will call you the same day to discuss your situation. Our underwriting team will then tailor the loan to your business needs.

  • My company is registered in the UK
  • My current debt obligations are affordable
  • I have a minimum of one year’s accounts
  • My minimum annual turnover is £100,000
  • I don’t have a previously liquidated business with outstanding creditors
  • My Director or Shareholder is a homeowner and over 18 years of age

Working capital loans without collateral

At Merchant Money we require a personal guarantee, but we don’t necessarily require collateral. When you sign a loan agreement with Merchant Money, you personally guarantee that you will pay back your loan, but you do not have to put up any real estate or personal collateral.

What our customers are saying

“Our recent experience with Merchant Money was faultless from start to finish, and I have no hesitations in recommending them for their professionalism and efficiency when handling our recent financing needs for the business. Their plain speaking and simple approach to or needs, gave us the confidence that we were working with a finance house that genuinely wanted to go that extra mile in helping us find the best solution in the most cost effective way possible. They can be assured that we would never approach any other finance provider without giving Merchant Money the opportunity first”.​ – Dominic Boyett, Director UE Coffee Roasters


“Fortunately, Merchant Money understands my business and have assisted me in improving my facilities several times. The process is fast and simple, and the MM team is great to deal with. I will definitely partner with it again.’’Martin Horner, Director The Borough

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