Cashflow loans UK 2026
A cashflow loan funds the recurring gap between business outflows and inflows: payroll due before customers pay, VAT bills against trading peaks, stock cycles ahead of revenue. Unlike a term loan that funds a defined project, cashflow finance is designed to be drawn and repaid as the gap moves. The right product depends on whether your gap is once-off (short-term term loan), recurring (revolving line) or daily-card-flow shaped (merchant cash advance).
What a cashflow loan covers
UK SMBs typically borrow against cashflow to handle:
- Payroll timing. Weekly or fortnightly pay against monthly customer invoices, especially in recruitment and contracting.
- Stock cycles. Q4 retail build, seasonal tourism stock, manufacturing raw-material lead times.
- VAT bills. Quarterly bills landing after busy periods, especially in hospitality and retail.
- HMRC pressure. Tax bill due dates that do not match cash inflow dates.
- Stage-payment gaps. Construction subcontractor payment cycles, agency client-payment cycles.
- Marketing and growth. Customer acquisition spend ahead of recurring revenue.
Three structures: short-term, revolving, MCA
Fixed amount, fixed term (3 to 18 months), fixed repayments. Suits one-off cashflow events (a tax bill, a single stock build). 8% to 26% APR depending on profile.
Pre-approved limit, draw as needed, pay interest on drawn balance only. Suits recurring or unpredictable gaps. 1% to 3% per month on drawn balance. iwoca, Just Cashflow and Fleximize lead this segment.
Lump sum, repaid as a percentage of daily card takings. No fixed term. Sized against six months of card-machine history. Best fit for retail and hospitality cash-flow gaps. Factor rate 1.15 to 1.45 of the advance.
Six UK cashflow lenders in 2026
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Flexi-loan / line of credit · £1k to £500k · founded 2011 · CRN 07798925
Flagship UK flexi-loan: draw-as-you-go up to £500k, pay interest only on the drawn balance. Same-day decisions, soft search at quote.
Typical rate: From 2% per month. Decision: Same day to 24 hours.
Read full iwoca review → -
Revolving credit / cashflow facility · £10k to £500k · founded 2014 · CRN 08508165
Revolving credit specialist focused entirely on working-capital facilities. £10k to £500k.
Typical rate: 0.5% to 2.5% per month on drawn balance. Decision: 24 to 72 hours.
Read full Just Cashflow review → -
Term loan with flex features · £5k to £500k · founded 2014
Term loans with flex features (top-ups, repayment holidays). 0.9% per month start rate for clean profiles.
Typical rate: From 0.9% per month. Decision: 24 to 48 hours.
Read full Fleximize review → -
Merchant cash advance + term loan · £3.5k to £500k · founded 2013 · CRN 10183728
Merchant cash advance against card flow for retail and hospitality cash-cycle gaps.
Typical rate: Factor rate 1.15 to 1.45. Decision: Same day.
Read full Capify review → -
Merchant cash advance · £10k to £500k · founded 2011 · CRN 07475281
MCA with no-PG options for some applicants. Strong on hospitality and retail.
Typical rate: Factor rate 1.10 to 1.40. Decision: 24 to 48 hours.
Read full 365 Business Finance review → -
Business credit card with revolving credit line · Up to £250k credit limit · founded 2012 · CRN 09867706
Business credit card and credit line product. Faster than term debt for low-ticket recurring spend.
Typical rate: From 15.5% APR variable on cash; 0% on card spend if cleared in full. Decision: 2 minutes to same day.
Read full Capital on Tap review →
Eligibility and cost
For a flexi-loan or short-term cashflow facility, most UK fintech lenders require:
- 12+ months of trading (six months for MCA against card flow).
- £100k+ annualised turnover (or equivalent monthly card takings).
- Ltd company preferred, sole trader accepted by some lenders.
- Director credit profile broadly clean. Specialist post-decline lenders engage where mainstream declines.
- Three to six months of business bank statements ready, plus latest filed accounts.
Pricing on flexi-loans is per-month on drawn balance, which compounds. A 2% per-month rate works out around 24% to 27% APR depending on utilisation, well above mainstream term-loan headline rates. The flexibility is what you pay for.
Frequently asked questions
What is a cashflow loan?
A cashflow loan is short-term debt designed to bridge timing gaps between business outflows (payroll, stock, VAT, rent) and inflows (customer payments, card takings, contract payments). It is repaid from operating cashflow rather than against a specific asset. Typical structures: short-term term loans (3 to 18 months), revolving credit lines, flexi-loans drawn as needed, and merchant cash advance against card takings.
How is a cashflow loan different from a term loan?
A term loan funds a defined project or capex with a fixed repayment schedule. A cashflow loan funds the recurring gap between costs and revenues, often as a revolving facility you draw from and repay repeatedly. Pricing structure differs: term loans quote APR, flexi-loans quote per-month rate on drawn balance, MCA quotes a factor rate as total repayment.
How much can a UK business borrow as cashflow finance in 2026?
Small-business flexi-loans typically run £1k to £500k (iwoca, Just Cashflow). Merchant cash advance is sized to monthly card takings, normally 100% to 150% of one month of card flow. Short-term term loans run £5k to £500k depending on lender. For larger working-capital lines, mainstream banks reach £1m+ and specialist lenders can go higher with a debenture.
What rate should I expect on UK cashflow finance?
For flexi-loans on the drawn balance, 1% to 3% per month is the realistic 2026 range, which is roughly 12% to 36% APR depending on utilisation. For short-term term loans 8% to 26% APR. For merchant cash advance, factor rates of 1.15 to 1.45 of the advance amount. Headline rates are reserved for the strongest credit and trading profiles.
How fast can a UK cashflow loan be funded?
iwoca and Capify can fund the same day on accepted applications. Just Cashflow, Fleximize and most fintech lenders fund in 24 to 48 hours. Mainstream bank cashflow facilities run 1 to 3 weeks. Speed is paid for in rate: same-day MCA prices materially above mainstream term lending.
Can a UK business with seasonal cashflow get a flexible loan?
Yes. Flexi-loan structures (iwoca, Just Cashflow, Fleximize) suit seasonal businesses because you only pay interest on what you draw. Q4 retail, summer-peak hospitality and tourism operators commonly run a revolving facility through the off-season and pay it down at peak. Per-month pricing is higher than mainstream term loans, but the flexibility is the value.
If you are declined for cashflow finance
- Affordability stretched: shorten ticket, lengthen term, consolidate existing debt before reapplying.
- Sub-12-month trading: route to MCA against six months of card-machine flow, or the British Business Bank Start Up Loan.
- CCJ history: Capify, JPM Capital, Bizcap or Bolton Finance.
- For B2B receivables-heavy businesses, invoice finance often passes where unsecured cashflow does not. See MarketInvoice.
See the full after-a-decline guide for routing.
Where to read next
- Business loans UK 2026 overview
- Fastest UK business loans
- VAT loan use case
- HMRC tax loan use case
- By product directory
- Our /get-quotes/ form for live broker matching
Reviewed by Oliver Mackman, Director, Best Business Loans Ltd (16833937). Last reviewed: 2026-05-10.