Unlocking Cashflow Support for UK SME Businesses

By 11.27.23November 28th, 2023No Comments
Last Modified : Nov 28, 2023

As we approach the end of what has been an economically challenging 2023 for many small and medium-sized enterprises (SMEs), the need for easily accessible funding to assist and boost cashflow is a number one priority, especially at this time of year.

Whether it is ensuring there is sufficient working capital to navigate successfully through Q4 or preparing finances for a strong start to 2024, let’s take a dive into the types of cashflow support and funding that can best equip our UK SME’s.

Invoice Financing

For SMEs with a steady, constant stream of sales invoices, invoice financing can be a game-changer.

This extremely flexible form of funding allows businesses to unlock the cash tied up in their unpaid invoices, providing an injection of working capital when needed most and without the need to have to take on any new debt.

It’s a highly popular solution that aligns perfectly with the pace of a business, ensuring a smooth and consistent flow of cash.

Asset-Based Lending

For SMEs with significant and sustainable assets, asset-based lending can dramatically improve its financial security, without having to rely solely on creditworthiness.

Asset-based lending involves using a company’s assets, such as inventory, equipment, or receivables, as collateral for a loan. The amount borrowed is based on the value of these assets.

Merchant Cash Advances

In our age of ubiquitous digital transactions, merchant cash advances can offer SMEs a vital lifeline.

This innovative funding approach allows mainly retail and service businesses to access a large sum upfront, repaid through a percentage of their daily credit card sales.

It’s a symbiotic relationship, as repayments are linked to the pace of a business’s revenue, ensuring a manageable and sustainable repayment mechanism.

Flexible Business Loans

Flexible business loans offer a versatile and a more traditional funding solution that is tailored to the unique requirements of a SME.

With a range of bespoke terms and repayment options, these loans empower businesses to successfully navigate their financial challenges without compromising their longer-term stability.

Government Grants and Regional Support

The UK government recognises SMEs’ vital role in our economy and has established various grant programs to support their growth. From research and development grants to initiatives fostering innovation, tapping into government support can be a key strategic move for SMEs looking to enhance their cashflow without the burden of taking on additional debt.

The above funding solutions cater to the diverse needs of SMEs, offering flexibility and adaptability to each business’s unique financial journey. Choosing the right option can seem daunting but don’t be put off as generally speaking the right solution can be found dependent upon the nature of the business, its industry, and its immediate cashflow requirements.

Get in touch with us here at eCapital today to find out more.


eCapital Logo

eCapital Commercial Finance (eCapital) is a leading invoice financier providing funding facilities up to £4m to support the growth of SMEs through the provision of flexible working capital facilities. With five fully functional UK regional offices, its local teams are uniquely placed to respond promptly and purposefully to the cashflow needs of its clients. The business has grown significantly since its launch in 2001, providing over £4 billion of funding to businesses. It is majority owned by eCapital, a US based financial services business with interests in the USA and Canada.

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