Working capital finance – Overview for businesses

20 July 2022

Working capital finance solutions can help businesses to improve cash flow. A business can borrow money to cover short-term needs.

Working capital financing is a common practice for businesses with an inconsistent cash flow. A small business may require working capital finance to bridge the gap between cash inflows and outflows while the business grows. Sometimes a business needs a loan to cover day-to-day operations like rent and payroll not just for purchasing equipment or longer-term investment.

Perhaps the two most well-known examples of working capital finance are bank overdrafts and invoice discounting, but the world of commercial finance and asset-based lending (ABL) is complex with many alternatives lenders who don’t always use the same, terminology or business approach.

Whether your business is facing cash flow issues or not, having extra cash in reserves is always good to get, before unexpected circumstances.

Benefits available from some working capital financers:

  • Up to 80% of outstanding invoice value can be advanced.
  • Flexible lending – funding increases in line with your growth (UK and Export);
  • Confidentiality – lenders can offer a completely confidential service – your customers need not know you have a facility in place.
  • Lenders allow you to manage your funding at all times.
  • Sector-specific finance is often available.
  • Structured asset-based lending (ABL) – funding for management buy-outs/management buy-ins; and
  • Trade Finance & Supply Chain Finance Solutions.

Different types of short term – working capital finance:

  • Invoice finance – an effective way of quickly accessing a proportion of the value (up to 90%) of your invoices. A business ‘sells’ its invoices to the lender in return for accessing cash at the point products and services are sold. Specific sector-based offerings are available, as is the ability to arrange finance for selected invoices only.
  • Structured ABL – generate a higher level of funding by unlocking the maximum value tied up in the combined assets within your business, including debtors, inventory, plant & machinery and property.
  • Trade finance – supply chain finance, enabling the purchase of goods from overseas where you are otherwise unable to obtain credit from suppliers.

What you will need to get this financing:

As with all loans the lender will ask you to show your ability to make full repayment

  • Ensure that your management accounts are up to date,
  • Make available current detailed lists of debtors and creditors,
  • You might need up-to-date projections before an expert will consider your application.

Please talk to us about working capital finance. Maple Accountancy have many years of knowledge and success in advising businesses in obtaining working capital finance solutions.

If you would like to to discuss this further, please contact your client manager, email us at:, or call the office on 01332 207336.

You might also like to read:

Get Your Invoices Paid Faster – Maple Accountants

When is it time to raise finance for my business? – Maple Accountants

Maple Accountancy is a firm of expert Business Advisors offering accountancy services, tax and business advice to owner-managed and family-owned businesses.

All clients are individual, and we tailor our service to your needs. Use the site to find out what makes us different and understand why you should appoint us.


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Maple Accountancy Ltd.

Carter House, Wyvern Court, ​Stanier Way, ​Wyvern Business Park, Derby. DE21 6BF

01332 207336

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