April 19, 2023
min read
Written by: 
Nikolaus Hilgenfeldt

8 Best Working Capital Loans - Our Feedback For 2023 

Do you need help meeting the cash flow needs of your business? 

A lack of working capital can spell doom for a business, regardless of its current prosperity.

Therefore, numerous working capital loans are on the table to help you close the gap and keep your firm afloat.

But how do you make the right choice and decide what's right for your business?

This article will discuss the best working capital loans for small business owners so that you can make a well-informed choice.

What are we waiting for? Let's dive in!

8 Best Working Capital Loans To Consider

Working capital loans come in various types and, thus, have different fees, eligibility requirements, and interest rates. 


We've researched for you and compiled a list of the best working capital loans for various business uses. 

1. Myos


Loan amount: €10.000-2.5 million

Interest rates: Between 1-3%

Minimum credit score: /

Myos is an asset-based financial provider that helps sellers worldwide accelerate their growth. 

They provide working capital loans ranging from £10,000 to £2,500,000 with monthly fees ranging from 1% to 3% of the loan amount. 

You can use this additional working capital to cover ongoing costs, such as inventory stock-up, marketing, expanding your team, opening a new store, etc.

You have up to 24 months to repay the debt however you see fit, without hidden fees or early-payment penalties.

Myos uses AI and machine learning to evaluate your products' market value and decide how much money to give you without requiring additional verifications of the seller's credit. 

Created for the convenience of ecommerce users, working capital loans come in two available options:

1.  Purchase financing allows you to accelerate growth and remain flexible with additional working capital. Place orders from your manufacturer as usual while Myos handles your deposit or balance payment.

It is a great option to ensure you are always fully stocked and prepared for the high season.

2. Stock financing uses your current inventory as collateral to get new growth capital quickly.

Myos evaluates your products according to their popularity in marketplaces using AI, not just by checking your credit history. Furthermore, with only portions of your inventory as security, there is no need for personal guarantees, which minimizes personal risk.

The application process is straightforward – you can complete it online in 3 simple steps.

Myos doesn't require extensive paperwork or private data.

You just need to fill in your product's ASINs or EANs and provide information about how you scout and fulfill your orders. Myos will review your financing request for up to 72 hours.

After that, you will receive your funding.


To be eligible to receive funding from Myos, you need to meet the following eligibility criteria:

  • Your company has a registered office in Germany, Austria, Cyprus, or the United Kingdom (UK).
  • Your company has been in business for at least 6 months.
  • Your company has been selling goods for at least 50 days.

2. Lendio


Loan amount: $2 million

Interest rates: From 10%

Minimum credit score: 560

Lendio is a loan marketplace with over 75 lenders offering to assist businesses in obtaining secured, immediate small loans. 

You may get financing for just about any business need, whether it's for new machinery, an office move, or the purchase of a competitor.

After completing an application form, Lendio allows you to compare offers from several lenders. You'll receive a decision on the same business day. 

You can also access several funding choices, such as business lines of credit, business-term loans, merchant cash advances, and startup loans.


Lendio requires a completed application and 3 months of business bank statements to decide which loan you may be eligible for.

3. White Oak


Loan amount: £25k to £1m

Interest rates: Interest-only option available

Minimum credit score: /

White Oak is an FCA-authorized and regulated European lending platform that funds SMEs and mid-cap companies through a comprehensive suite of flexible loan alternatives.

Working capital loans can help you meet your cash flow needs, for example:

  • Corporation and Income Tax Payments
  • VAT Payments
  • Insurance Cover
  • Practising Certificates
  • Software Licenses
  • Annual Subscriptions & Licenses

White Oak takes into account both secured and unsecured financing.

But, you must provide a personal guarantee to take a secured loan for limited corporations.

Also, you may need to provide debentures for transactions worth more than £250,000.


To receive funding from the White Oak, you should meet the following requirements:

  • Trading for 3 years or longer
  • Provide track record of profitability
  • Provide short-term requirement

4. Aldermore Bank


Loan amount: Depends on the unique specifications of your business

Interest rates: Service fee + discount fee

Minimum credit score: /

Aldermore provides a variety of financing alternatives, including invoice finance, factoring, discounting, and asset-based lending.

Aldermore's invoice finance service is available to many enterprises, including importers, wholesalers, construction, manufacturing, and recruitment companies.

Aldermore provides two types of invoice financing without giving up equity to investors.

1. Invoice factoring enables businesses to sell unpaid invoices to Aldermore and get up to 90% of the total in return.

In addition, the lender collects payments on outstanding invoices on your behalf, saving you time and effort hunting down consumers.

2. Invoice discounting is another service Aldermore offers small businesses. In this case, the company does not pursue payments, and it is confidential.

Financing works straightforwardly. You sell your outstanding invoices to Aldermore, and they immediately pay you up to 90% of the total invoice amount.

When Aldemore receives complete payment for the invoice, they will refund the remaining 10% to you, minus a small fee.


Invoice finance is available to businesses that provide a service or product on credit and raise invoices.

Companies asking for invoice finance must have a minimum turnover of £750,000.

5. ArchOver


Loan amount: £100,000 to £5 million

Interest rates: From 9.50% p.a

Minimum credit score: /

ArchOver Ltd. approaches working capital lending differently, combining the security of invoice finance with the cost-effectiveness of peer-to-peer lending.

Working capital loans are secured by your accounts receivable and recurring revenue contracts rather than advancing a percentage of a raised invoice.

These fixed-rate, fixed-term loans have a straightforward pricing structure with no hidden fees.

So whether you need capital to expand your personnel, cover an unexpected tax expense, or need extra cash to offset a seasonal revenue fall, these multi-purpose loans can provide a cost-effective solution.


An experienced in-house credit team thoroughly examines businesses that want to apply for a loan. They assess all aspects of the company, from sector risks, financials, and projections, to the management team.

The Credit Committee then approves the loan before the Borrower signs the agreements. 

6. Capify


Loan amount: Between £5,000 and £500,000.

Interest rates: Available upon the application

Minimum credit score: /

Capify specializes in providing financing to medium-sized businesses (SMEs). 

It is not a bank but a direct online lender offering business loans of up to £500,000.

It currently provides two services: a small business loan and a merchant cash advance.  

Both types of borrowing have minimum turnover criteria that you repay differently than traditional business loans.

You repay the small business loan in daily installments for up to a year.

At the same time, you repay the merchant cash advances as a percentage of your daily debit and credit card sales.

Approval and funding could come in as quickly as the same day, depending on the nature of the business.


To qualify for a Capify business loan, you must:

  • Have a trading history of 12 months+
  • Have a monthly turnover of £10,000+

7.  Fleximize


Loan amount: Between £5,000 and £500,000. 

Interest rates: Depend on the nature of your business

Minimum credit score: /

Fleximize is a direct lender that aims to give small and medium-sized businesses (SMEs) access to the same financing terms and conditions as their larger counterparts. 

Fleximize has features like penalty-free early repayments and top-ups and a repayment holiday facility. It's helpful in many fields, from retail, construction, manufacturing, to real estate.

You can borrow between £5,000 and £500,000 with repayment terms of 3 to 48 months and get access to your money in as little as 24 hours.

Your interest rate will remain stable for the duration of your loan term. The interest rate you receive is based on several variables, including the size and length of the loan you want, the stability of your company, and its credit rating.

Note that the interest rate can be different from the "representative APR" quoted in the ad.

Fleximize typically requires a personal guarantee for loans under £250,000, although it does require collateral for any loan amount over this.


Your company, regardless of size or industry, can apply to Fleximize if:

  • You are a limited company, a limited liability partnership, or a non-limited partnership with at least four partners.
  • You are based in the United Kingdom, and at least one of your directors is also situated there.
  • You've been trading for at least six months.
  • You make at least £5,000 every month.

8.  CapitalBox


Loan amount: From £2,000 to £50,000

Interest rates: Depend on the nature of your business

Minimum credit score: /

Business loans from CapitalBox (formerly Ferratum), a Liverpool-based financial services provider, start at £2,000. 

CapitalBox guarantees a speedy approval process, dedicated support, and direct payments.

Finance options for businesses range from £2,000 to £50,000, with repayment terms of 18 months.

You can use borrowed funds from inventory and equipment upgrades for building improvements and employee hiring/training.

There are no application fees, and the processing time is typically less than a day. 

You need to repay the loan using fixed rates each month.

However, personal liability may apply, which means you would be responsible for repayment if the company cannot pay.


To qualify for a working capital loan, you need to meet the following requirements:

  • Your business needs to have been operating for at least 12 months.
  • Your annual turnover is at least £75,000. 

How To Choose The Best Working Capital Loan For Your Needs

Here are some tips for comparing working capital loans:

1. The first thing you should look at when comparing working capital loans is the interest rates. Different lenders will offer different rates, so shopping around and finding the best rate for your needs is essential.

2. Besides interest rates, you should also look at any fees associated with the loan, such as origination fees, prepayment penalties, etc. 

3. Repayment terms include the length of the loan and the frequency of payments. Make sure the terms fit your budget and your business needs.

4. The loan amount is also a key factor. Ensure you're applying for a loan that meets your working capital needs.

5. Look for lenders with good customer reviews (for example, on Trustpilot) and a solid track record of lending to small businesses.

6. Examine the lender's support solutions. If you've identified a lender willing to provide the funds you require at reasonable conditions, consider the lender's support options before signing the loan agreement. If you need help with repayment, customer service can be beneficial.

To ensure a suitable fit, look into the lender's customer service resources and read reviews.

Wrapping It Up

You may need help making ends meet or quick cash to cover payroll or inventory when running a business. In that case, a working capital loan might be something to look into.

Still, so many options on the market offer different and often costly solutions.

So, what is the best working capital for your business?

It all depends on your needs, but to find the most suitable ones, follow the tips above.

Myos offers working capital loans under fair conditions and has the following benefits:

  • No minimum term. No fixed rates. You only pay a monthly fee on the outstanding capital. Your %-fee depends on your product scoring. If you repay earlier, you will pay less.
  • No personal guarantee or credit score checks.
  • Flexible repayments of up to 24 months without extra costs
  • Confidential funding without contacting your manufacturer, supplier, or customers
  • Quick and easy online application
  • Personalized customer support service via phone, email, chat, or in-person.

Get your free quote today and see why we are the top choice for online sellers worldwide!


Can You Get a Working Capital Loan With Bad Credit?

You can still acquire a working capital loan if you have bad credit. Still, you will likely have to pay a higher interest rate or put up security, such as equipment or assets.

What Do You Need To Qualify For A Working Capital Loan?

To qualify for a working capital loan, online lenders require a personal credit score of at least 530. In contrast, traditional banks and lenders want a score of at least 600.

Some lenders also consider an applicant's business history, financials, and business plan. 

Keep Learning

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11 Best Financing Options for Your Business in 2023

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