# Working capital finance: what it is and when you need it. Working capital finance is short-term credit that covers the gap between a company paying its costs and being paid by its customers. It is not long-term investment finance; it is the money that keeps operations running while cash is in transit. On every Credicorp product, **the company borrows, never you personally**. No personal guarantee. Creditcorp is the growing name for the Credicorp group, and Credicorp Limited is the lender behind it. It does one thing: short-term working capital for incorporated UK businesses. This page is a guide, not an application; applying happens on the lender's own site, [credicorp.co.uk](https://credicorp.co.uk/). Throughout, the borrower is the **company** — a UK private limited company (Ltd), LLP or PLC — not the director who signs. No personal guarantee, no charge over a home, no personal credit check on a director. These are **not** personal loans, payday loans or sole-trader finance. ## What is working capital? Working capital is the difference between a company's current assets (cash, trade debtors, stock) and its current liabilities (trade creditors, short-term debt). Positive working capital means the company has more short-term assets than short-term liabilities; negative working capital means the reverse. In everyday trading, working capital is the cash needed to fund operations between the moment a cost is paid and the moment the corresponding revenue is received. It is the wheel that keeps the business turning — and when it seizes up, even a profitable company can find itself unable to meet its obligations. ## Types of working capital finance The main product types, and what each is suited to. **Business Bridging Loan** — a fixed-sum advance, paid in one go, repaid over a term of 14 to 84 days. Interest at 0.25% per day on the outstanding balance. Best for a one-off, time-boxed gap — a confirmed order to stock, a supplier deposit, an urgent repair. **Credicorp Flex** — a revolving credit facility. A limit is set, and the company draws, repays and redraws as needed, paying interest only on what is drawn. Best for a recurring cash-flow timing gap — customer payment terms consistently longer than supplier payment terms. **Credicorp Slice** — a single supplier invoice split into instalments for a flat 6% fee. Not a general credit line; it is tied to one specific bill. Best when one chunky invoice creates a temporary cash shortfall. **Invoice finance (not Credicorp)** — another type of working capital finance is invoice discounting or factoring, where the company advances against its own unpaid invoices. This is not a Credicorp product. For those looking to compare, see [Credicorp Slice vs invoice finance](/compare/slice-vs-invoice-finance/). ## What causes a working capital gap? Working capital gaps are normal in a trading business. The most common causes: **Customer payment terms.** A company invoices today and is paid on 30, 60 or 90-day terms. The work is done; the cash is delayed. **Stock requirements.** To fulfil an order the company must buy materials or stock before the order is complete and invoiced. Cash goes out before it comes in. **Seasonal trade.** Many businesses have peak seasons that require heavy stock-up before the peak, funded from the previous season's cash — which may itself have been tight. **Growth.** The faster the company grows, the more cash it needs to fund the next order, the next hire, the next supplier payment — before the next customer payment lands. Fast growth is one of the most reliable generators of working capital gaps. **Uneven customer concentration.** If a large proportion of revenue comes from one customer whose payment is delayed, the whole company's cash flow is temporarily at risk. ## How to identify and close a working capital gap **Identify the gap** by mapping when costs leave the account and when revenue arrives. The difference between those dates is the gap; the amount outstanding at any point in the cycle is the peak requirement. **Assess the repayment source.** Working capital finance is best when there is a clear, near-term repayment event — a confirmed invoice on terms, a known seasonal payment date, an order already in progress. **Choose the right instrument.** One-off gap with a known repayment date → Bridge. Recurring monthly gap → Flex. One specific invoice → Slice. **Borrow only what you need for as long as you need it.** Daily interest means every extra day and every extra £1,000 adds cost. Short-term working capital is not a long-term solution; it is a short bridge to a cash event you can already see. ## Working capital finance questions **Is working capital finance the same as a business loan?** It is a type of short-term business loan, but it is designed specifically for the timing gap between costs and revenues — not for investment, expansion capital or funding losses. The distinction matters for affordability: a timing gap has a natural resolution; a funding gap does not. **Do I need to provide security?** For Credicorp products, no. No personal guarantee, no debenture, no charge over assets. The lender assesses affordability from bank statement data. **Can a sole trader use working capital finance?** Not from Credicorp. All three products are for bodies corporate — UK limited companies and LLPs — only. They are not for sole traders or individuals. See [lending and regulation](/lending-and-regulation/). **How quickly can working capital finance be arranged?** For Credicorp, a completed application submitted before mid-morning on a working day can result in funds the same day. The typical turnaround from application to money in the account is one working day. **Is it the same as an overdraft?** A revolving facility like Flex is structurally similar to an overdraft — a limit you draw and repay as needed — but it is a formal credit agreement, not a bank product. There is no sweep or automatic draw; the company requests each drawdown. See [Credicorp Flex vs a business overdraft](/compare/flex-vs-overdraft/). ## Related guides - [The cash-flow gap, explained](/learn/cashflow-gap-explained/) — the timing gap between profitable trading and actual cash. - [A loan or a facility](/learn/a-loan-or-a-facility/) — the structural difference between a fixed advance and a revolving line. - [Is short-term borrowing right for you?](/learn/is-short-term-borrowing-right-for-you/) — an honest decision aid, including when not to borrow. - [Working-capital gap tool](/tools/working-capital-gap/) — calculate the size and duration of your own gap. - [The three products](/products/) — Business Bridging Loan, Credicorp Flex and Credicorp Slice. ## Fill the gap. Keep trading. Same-day decisions. No personal guarantee. The company borrows, never you. Apply at [credicorp.co.uk](https://credicorp.co.uk/).