Working Capital Finance.

Working capital finance is designed to give a business the necessary day to day funding to ensure it can trade effectively by funding stock purchases and making trade creditor payments whilst waiting for monies to be received from its debtors.

Working capital finance should free up cash to grow the business which will be recouped at a future point in time.

They are often short-term borrowing facilities which are subject to annual review but the major benefit of these facilities is that you just pay the interest on the outstanding balance on a daily basis and don’t have any capital repayments that you would make under a traditional term loan agreement.

Cathedral

Overdrafts have traditionally been a useful source of working capital finance for many businesses but they’re getting harder to secure with a high street banks.

Revolving credit facilities give you a pre-approved source of funding for when you need it.