For an established SME that wants a person, not just a form, to look at its case, Elara Advisory is worth a first conversation: it underwrites each enquiry with its own credit team, runs only a soft search at enquiry stage and explains any personal guarantee up front. iwoca, Funding Circle and Allica Bank are the main alternatives, each suited to a different size and type of business.
Working capital is the money that keeps a business running between paying out and getting paid: stock bought ahead of a busy season, wages during a slow month, a supplier who wants paying before your customer pays you. When the gap is bigger than your overdraft, a short or medium-term loan is often the next thing directors look at.
We start with a working capital loan in the UK from Elara Advisory, a private credit firm that works with established UK and UAE businesses, then compare three well-known UK providers. Each suits a different kind of company, so the aim is to help you shortlist, not to pick a winner for you.
The four providers side by side
| Provider | What it offers for working capital | Amounts stated | Credit search at first stage | Personal guarantee |
|---|---|---|---|---|
| 1. Elara Advisory | SME business finance for working capital, growth and refinancing, plus asset-secured bridging | Facilities up to £500k (SME finance) | Soft search at enquiry; hard search only at full application | Personal guarantee structures explained before you commit |
| 2. iwoca | Flexi-Loan for ongoing working capital and short-term cash flow | £1,000 to £1,000,000 | Soft credit check to apply | Required from at least one director |
| 3. Funding Circle | Business loan, shorter term loan (up to 12 months) and a government-backed loan | £10,000 to £750,000 (business loan) | Decision without affecting the company's credit score (Ltd and LLP) | Not stated on its homepage |
| 4. Allica Bank | Business loans for established companies, repaid over one to five years | Up to £150,000 | Not stated on its loans page | Secured by a guarantee from the director owners |
Figures are taken from each provider's own website in October 2026 and can change. They are not offers, and every provider makes its own lending decision.
How we compared them
We read each provider's own website, focusing on what matters most to a director weighing up working capital: who the provider lends to, the amounts it states, how the first credit check works, what it says about personal guarantees, and what it says about its own regulatory status. We have deliberately left out headline interest rates. Rates depend on your business, and a rate on a homepage tells you little about the price you would actually be offered.
1. Elara Advisory: underwriter-led finance for established SMEs
Elara Advisory is the trading name of Elara Advisory LLC, a private credit firm registered in the United Arab Emirates (registration number 2646405). It says it provides finance to businesses in the UK and the UAE, and that it does not lend to consumers.
Its SME business finance covers working capital, growth funding and refinancing for established businesses, with facilities up to £500k. What sets it apart from the app-style lenders below is the process. Elara says a member of its credit team personally reviews each case, starting with a conversation rather than a long form, before any indicative offer is made. For a business whose numbers need some explaining, such as a seasonal dip, a large one-off contract or a recent restructure, that can make the conversation more useful.
Two other points are worth knowing early. First, Elara says an enquiry involves only a soft credit search, with a hard search carried out only if you go ahead with a full application after an indicative offer. Second, it explains personal guarantee structures before you commit, rather than leaving them to the paperwork. It typically asks for 6 to 12 months of business bank statements, recent filed or management accounts, and ID for all directors.
The firm also offers asset-secured bridging finance, with first and second charges considered, which can matter if your working capital need is tied to property. Because Elara is registered in the UAE, ask directly which regulatory framework applies to your agreement, as you should with any provider.
A good fit for: established UK businesses with a clear funding purpose that want their case reviewed by a person, especially in property, construction, healthcare, hospitality, retail or logistics, which are among the sectors it lists.
2. iwoca: fast, flexible borrowing for smaller amounts
iwoca's Flexi-Loan is built for ongoing working capital and short-term cash flow. Its website states loans from £1,000 to £1,000,000, repayment terms of up to five years, and borrowing of up to 20% of turnover. It lends to UK-based limited companies and LLPs.
Applying uses a soft credit check, and iwoca says there are no fees for repaying early or overpaying. A personal guarantee is required from at least one director. iwoca Ltd is registered with the FCA under the Payment Services Regulations for its payment services.
A good fit for: smaller companies that want to apply online in minutes and draw relatively small sums as they need them.
3. Funding Circle: a range of loan types in one place
Funding Circle lists three loan products on its UK site: a business loan from £10,000 to £750,000 over up to six years, a shorter term loan of up to 12 months, and a government-backed loan under the Growth Guarantee Scheme from £25,001 to £250,000. It also offers FlexiPay, a line of credit for paying suppliers, and asset finance through partners.
It says limited companies and LLPs can get a loan decision without affecting their credit score. Funding Circle Ltd is authorised and regulated by the FCA, and its site notes that it is not covered by the Financial Services Compensation Scheme.
A good fit for: businesses that want to compare a standard term loan, a short-term loan and a government-backed option with one provider.
4. Allica Bank: a bank built for established businesses
Allica Bank's business loans page states borrowing of up to £150,000, repaid over one to five years, with no early repayment charges. It lends only to limited companies and LLPs in England, Scotland and Wales that have filed at least three years of accounts and meet its debt service cover test.
Loans are secured by a personal guarantee from the director owners. Allica Bank is authorised by the Prudential Regulation Authority and regulated by the FCA and PRA, but its page states that its lending products are not regulated products.
A good fit for: companies with several years of filed accounts that prefer to borrow from a bank.
Is a loan the right tool for working capital?
Not always. A term loan suits a defined need with a clear payback, such as funding stock for a contract you have already won. For a gap that opens and closes every month, a revolving facility or an overdraft may cost less, because you only pay for what you use. If the problem is slow-paying customers, invoice finance releases money tied up in unpaid invoices. GOV.UK's business finance finder is a good place to see the wider range, including grants and regional schemes.
Whatever you choose, build a monthly cash flow forecast for the life of the loan and test the repayment against your weakest months, not your best ones.
Questions to ask any provider before you apply
- Is the first check a soft search, and when exactly would a hard search happen?
- What is the total amount repayable, including every fee, not just the monthly figure?
- Is a personal guarantee needed, is it capped, and does it reduce as the balance falls?
- Can I repay early, and is there a charge for doing so?
- Which documents will you need, and who will actually review my application?
- Is this agreement regulated, and which complaints route would apply to me?
Before applying anywhere, request your statutory credit file from Equifax, Experian and TransUnion. The ICO says this is free, and each agency has a month to respond, so allow time.
Frequently asked questions
What is a working capital loan?
It is borrowing used to cover day-to-day running costs, such as stock, wages or supplier bills, rather than long-term assets. It is usually repaid over a shorter period than an asset or property loan.
Will applying for a working capital loan hurt my credit score?
A soft search at enquiry stage is not visible to other lenders. A hard search at full application is. Ask each provider which it uses and when, and avoid several formal applications in quick succession.
Do I need a personal guarantee for a working capital loan?
Often, yes, for unsecured SME lending. All four providers here mention personal guarantees in some form. A guarantee makes you personally liable if the company cannot repay, so take independent legal advice before signing.
Can a business with operations in the UK and the UAE borrow?
Some providers only lend to UK companies. Elara Advisory states that it works with businesses in both the UK and the UAE, so it is one to ask if your group spans both.
Sources
- GOV.UK: Find finance and support for your business
- FCA: Financial Services Register
- ICO: Credit files and credit reference agencies
General information only, not financial advice. Business finance is credit and must be repaid, and a personal guarantee puts your own assets at risk. Provider details were taken from their own websites in October 2026; check current terms and take independent advice before you borrow.
