Business loans for service based businesses
Wednesday 10th September 2025
Last updated: 15th January 2026
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Cash flow challenge: Service-based businesses facing cash flow pressure when client payments are delayed, while overheads like payroll, software, and project costs still need to be paid.
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Perfect for: Professional service firms, agencies, trades, and consultancies that need reliable funding to manage project costs, expand operations, or stabilise cash flow.
Novuna helps service-based businesses access fast, flexible funding designed around their project cycles and client relationships, either through our award-winning in-house finance or by comparing providers to find a great fit for your situation.
What is a business loan for service-based businesses?
A business loan for service-based companies provides access to funding that helps manage the unique cash flow demands of project-led or client-dependent businesses.
It’s ideal for businesses that deliver services before getting paid, helping you maintain stability, invest in growth, and manage costs across multiple projects.
Loans can be used to:
- Fund new client projects or contracts.
- Cover payroll and supplier costs while waiting for payments.
- Invest in software, systems, or technology upgrades.
- Expand marketing and business development efforts.
- Support seasonal demand or business growth.
Why service-based businesses use loans
Service firms often operate with predictable costs but unpredictable income especially when client payments are delayed.
A business loan ensures that growth isn’t held back by temporary cash flow gaps.
Common scenarios include:
- A consultancy funding a new team before project invoices are paid.
- A marketing agency investing in software or campaign tools.
- A trade business upgrading vehicles or equipment.
- An IT provider scaling to support new contracts.
Each use case demonstrates how funding can keep service businesses competitive and confident in their growth plans.
Types of finance available
| Finance Type | Purpose | Funding Range | Best For |
| Unsecured business loans |
General business use or expansion |
£10,000–£500,000 | Established service firms |
| Working capital loans | Manage short-term costs | £10,000–£250,000 | Agencies with fluctuating income |
| Invoice finance | Release funds from unpaid invoices | Based on invoice value | B2B consultancies |
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Merchant cash advance |
Retail and ecommerce card sales | £5,000–£300,000 | Hospitality or trades |
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Asset finance |
Purchase or lease equipment | £5,000–£500,000 | Service firms using vehicles or tools |
Benefits of business loans for service firms
- Maintain consistent cash flow: Bridge the gap between invoicing and payment.
- Fund new opportunities: Take on larger clients or projects confidently.
- Invest in people and systems: Support recruitment, training, and software upgrades.
- Quick approvals: Access funding in as little as 24–48 hours.
- Tailored repayment options: Align your payments with client income or project milestones.
Service based business examples
- Creative agencies: finance for marketing campaigns and staff expansion.
- Consulting firms: loans for hiring, software, and working capital.
- IT service providers: investment in hardware or cloud infrastructure.
- Trades or maintenance companies: funding for vehicles and materials.
- Professional services: support for cash flow between client retainers.
Each industry relies on steady cash flow and business loans ensure you can deliver exceptional service without financial interruptions.
How Novuna Business Cash Flow can help
At Novuna, we understand that service-based businesses depend on cash flow and trust. Speak to our experts today to help you make the right decision for your situation.