Best cash flow loans for small businesses in the UK
Wednesday 10th September 2025
Last updated: 13th January 2026
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Cash flow challenge: Small businesses often face short-term cash gaps between paying suppliers and receiving customer payments, making it difficult to manage daily operations or invest in growth.
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Perfect for: Small business owners, sole traders, and growing SMEs who need reliable funding to maintain liquidity, cover expenses, or manage seasonal fluctuations.
Novuna helps small businesses access flexible cash flow loans and funding solutions to keep operations running smoothly, either through our award-winning in-house service or by comparing providers to ensure you secure the right deal for your needs.
Keep your business moving with flexible cash flow finance
Cash flow loans are designed to help businesses cover short-term funding needs like paying suppliers, wages, or tax bills without disrupting operations.
They provide immediate access to working capital, so you can focus on running your business rather than worrying about income timing or delayed payments.
With a cash flow loan, you can:
- Bridge seasonal dips in revenue.
- Pay suppliers on time to maintain good relationships.
- Fund marketing, equipment, or stock purchases.
- Manage expenses while waiting for invoices to clear.
Unlike traditional bank loans, cash flow loans are typically unsecured, meaning you don’t need to use business assets as collateral.
What is a cash flow loan?
A cash flow loan is a short-term funding solution based on your business’s performance and projected revenue rather than physical assets.
t’s particularly useful for small businesses that experience fluctuating cash cycles or delays in customer payments.
Key features include:
- Fast approval (often within 24–48 hours).
- Fixed or flexible repayment options.
- Available to both limited companies and sole traders.
- Suitable for any sector, from retail and manufacturing to professional services.
Cash flow loans are available in both secured and unsecured formats, depending on your business profile and funding requirements.
Compare the best cash flow loan options
Below is an overview of the most common cash flow loan types available to small businesses in the UK.
| Type | Loan Range | Best For | Typical Benefits |
| Cash Flow Loan (Unsecured) | £10,000–£500,000 | Small businesses needing fast working capital | Quick access, minimal paperwork, flexible terms |
| Working Capital Loan | £10,000–£250,000 | Covering day-to-day expenses or shortfalls | Smooth cash management and predictable repayments |
| Merchant Cash Advance | £5,000–£300,000 | Card payment businesses (retail, hospitality, eCommerce) | Repay as a percentage of daily sales, no fixed schedule |
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Asset Finance |
£10,000–£1,000,000+ | Businesses purchasing or leasing equipment | Access to equipment without upfront cost |
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Invoice Finance |
Based on invoice value | B2B firms waiting on client payments | Unlocks up to 90% of invoice value within 48 hours |
Explore flexible finance options tailored to your business needs:
- Working capital loans to manage operational costs.
- Merchant cash advances for turnover-based repayments.
- Invoice finance to improve liquidity from unpaid invoices.
- Asset finance to fund essential tools and equipment.
Who can benefit from a cash flow loan?
Cash flow loans can help almost any business that experiences uneven income or high upfront costs.
They’re especially effective for:
- Retailers and hospitality firms managing stock or seasonal demand.
- Service-based businesses waiting for client invoices to clear.
- Manufacturers purchasing raw materials or fulfilling large orders.
- Construction firms facing long payment terms from contractors.
- Professional services firms covering operational costs between projects.
If your business needs short-term stability without long-term commitments, a cash flow loan can provide the flexibility you need.
Benefits of cash flow loans for small businesses
- Fast approval and funding: Receive funds in as little as 24 hours.
- Unsecured options available: No need to pledge assets.
- Flexible repayment terms: Align payments with your revenue cycle.
- Improved working capital: Maintain smooth operations between payments.
- Support for growth: Use funds for marketing, recruitment, or new contracts.
Alternatives to cash flow loans
- Working capital loans
Ideal for managing day-to-day operations, payroll, or short-term expenses. - Merchant cash advances
Perfect for businesses with steady card transactions. Repay a percentage of daily sales instead of fixed monthly payments. -
Invoice finance
Release cash from unpaid invoices without taking on new debt.
How Novuna Business Cash Flow can help
We’ve helped thousands of UK small businesses maintain healthy cash flow and unlock growth opportunities. - speak to our experts today to help you make the right decision for your situation.