Working Capital Loans

Increase cashflow with a working capital loan

Benefits of Working Capital Loans

A working capital loan is similar to a traditional business loan, except it's specifically there to increase working capital, and therefore your cashflow. Once the funds have beem credited to your account, it can be used for any day-to-day business expenses, such as bills, rent, and any other costs that hinder your cash flow. A facility such as this can be put in place, to aid you accessing long-term, expensive assets, but more typically to cover business operational costs on a short-term basis. Working capital loans are flexible, meaning it can be increased in times of reduced income. As this is a short term option, the common term time for this product is 12 months, although this can be specifically tailored to suit your company's wants, and needs. The undertaking of a credit facility is not a simple process to arrange yourself, although we can make it as easy as possible for you, and your business.

There are plenty of benefits to a Working Capital Loan. As this is a relatively simple facility on our side, it won’t take an extended period of time to process and have it put in place. The most common processes within the Alternative Business Funding market that tends to make it take longer before you have your funds is having to take security against your assets. This is a task that is completed within Asset Finance and Secured Loan products, and tends to take a lot of time due to valuations. Working Capital Loans tend to be shorter term, meaning that they are typically unsecured.

Security may be asked of you, only in the case that your business isn't strong enough to fit the criteria for an unsecured facility. A personal guarantee will most-likely be asked of you, although no assets will be taken as collateral, and your valuable business assets will be risk-free. A personal guarantee is very common with credit facilities, and is used as a way to ensure the borrowed funds will get repaid.Funds can be received within 24 hours of approval, meaning application to exchange of funds can happen within 7 days.  

Other Products

As a business owner, it is vital you stay on top of your finances. There are plenty of financial products to aid your business in your venture for success. Loans come in many forms, some with security attached, and these are a product made to give you an injection of cash. The use of the new funds in your business is up to you, perhaps an expansion, or maybe consolidate some of your debt.

Invoice Finance is a product that allows you to access funds credited to you invoices, removing the stress of lengthy payment terms. We can support business owners in all stages of their growth, from new starts to those trading for 20+ years. Limited Companies and Partnerships can acquire funding through our panel of lenders, for working capital, business expansion (such as recruiting staff, or purchasing an asset) or ongoing projects.

With Asset Finance products, there are two main types. One works similarly to a financial agreement, where an asset is acquired, with payments made over time. This is subject to interest, which is typically around 2%. This allows you access to an asset you perhaps could not afford, if you were only able to make payment as a lump sum on day one. Some business assets, such as large vehicles and plant, can be very expensive, but vital to the growth of your business. With the right asset finance facility, you could unlock the next step up in your business venture.The other form of asset finance is more simple. It is known as asset refinance, and it involves security against assets. With a refinancing facility, you will gain an injection of cash into your business, via a loan secured against an asset the company had purchased previously. This works similarly to a Secured Loan, which would more typically be secured against a property. With a maximum Loan to Value of 90 percent, you could free up almost all of the value tied up in an asset you own. This can be used to boost your working capital, fund new projects, or purchase new assets/equipment.

Eligibility

Turnover

Unless you are a new start-up company, the minimum turnover most lenders will deal with is £100,000.

Trading History

Similarly to Turnover, start-up companies can get funding. Once you have filed accounts for the year, we can then apply you as a fully-fledged trading business.

UK Registered Businesses

Due to us dealing with UK Based Lenders, we can only find funding solutions for UK Registered Businesses.

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FAQs

How much will a Working Capital Loan cost?
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Working Capital Loans can range broadly in cost. The interest rate will be calculated based upon the strength of your business profile, although the typical interest rate for this product starts from around 4%. This is subject to the state of the market, the industry you oeprate in, the amount of money you are borrowing and what level of security is taken.

Am I eligible for a Working Capital Loan?
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Eligibility varies largely from lender to lender, with some much more flexible, some much less. The basic criteria for applying for a Working Capital Loan is as follows:

£100k minimum turnover, unless you are a new start-up
1 year trading, similarly to turnover, if you are a new start-up you can access funding
UK Registered Limited Companies

If you don’t meet this criteria it isn’t the end of the road, other funding options are available, and this can be discussed with one of our consultants.

How long does it take to arrange a Working Capital Loan?
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Funds can be received within 24 hours of approval. This means that once your application has been approved, money can be deposited into your account within 7 days. These funds can be used for any business use.

How much money can I get through a Working Capital Loan?
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Typically, advanced amounts of money can be anything between £2,500 and £300,000. The amount you can borrow will be calculated based upon your company's average monthly sales. These funds can be used for any business use

Why JD Capital Finance?
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We are not your average broker. We strive to find you the perfect funding facility for your business, in the easiest way possible. We designate a member of our team of specialist finance consultants to you, walking you through the entire process until the funds are in your hands.

CBILS Loan

“Would thoroughly recommend using JD Capital, we had great service all the way through the process from Perry. We will definitely be back should we need any more finance for my business”

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Disclaimer: JD Capital Finance helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. JD Capital Finance can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. JD Capital Finance may receive a commission or finder’s fee for effecting such introductions.
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