The 22-year-old, who is yet to make a senior appearance for Wolves, is available to make his debut in the Bluebirds' FA Cup third-round tie against Rochdale on Saturday.
Flatt, who came through the Molineux club's academy, has previously had loan spells at Wrexham and Cheltenham.
Barrow are sixth in the National League, two points off a play-off spot.
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Barrow have signed goalkeeper Jon Flatt on loan from Championship side Wolves until the end of the season.