Bizcap launches £500,000 line of credit facility for UK SMEs

Alternative business lender Bizcap has launched its Line of Credit (LOC) Ultra facility in the UK, offering small and medium-sized enterprises (SMEs) access to up to £500,000 in flexible working capital funding.

The new product provides facility limits of up to £500,000, with terms of up to 12 months, allowing businesses to draw down funds as required rather than taking out a traditional term loan.

Interest is charged only on the amount drawn, with promotional rates starting from 0% for the first four weeks.

Bizcap said the facility has been developed to help SMEs manage fluctuating cash flow requirements, seasonal demand, business expenses and investment opportunities without needing to submit repeated funding applications.

Unlike conventional business loans, where the full amount is typically advanced upfront, LOC Ultra enables eligible businesses to access available funds when needed, providing greater flexibility over their working capital.

The facility also offers brokers and financial advisers an additional funding option for clients requiring regular or intermittent access to finance.

Bizcap said the product could provide an alternative to invoice or debtor finance for some businesses, as access to funding is not directly linked to individual outstanding invoices.

Sasha Berg, Managing Partner at Bizcap UK, said the launch reflects growing demand among businesses for more adaptable funding solutions.

“The positioning of Line of Credit Ultra is particularly exciting because it gives businesses greater control over their working capital,” he said.

“Businesses don’t always know exactly when they’ll need additional funding or how much they’ll need to draw. Having a facility they can access when required gives SMEs the flexibility to manage seasonal demand, cover short-term cash flow gaps or fund new opportunities.”

The lender said LOC Ultra forms part of its wider strategy to provide accessible and flexible funding solutions to SMEs across the UK.

Rhys Cunnah, Chief Commercial Officer at Bizcap UK, highlighted the company’s approach to assessing applications, which considers individual business circumstances rather than relying solely on standardised credit models.

“SMEs can become frustrated by rigid credit models that don’t always reflect the realities of running a business. We consider the broader context and circumstances of each business, rather than taking a one-size-fits-all approach,” he said.

“Combined with the flexibility of Line of Credit Ultra, that approach allows us to support a broader range of funding needs.”