Working capital loans
Fund your daily operations and achieve peace of mind
A working capital loan can help you cover all your daily expenses and invest in your next opportunity without sacrificing any cash flow.
What is a working capital loan?
Working capital loans are a type of small business financing. They typically offer fast application decisions, as they are meant to cover immediate needs and day-to-day operations like covering payroll, purchasing raw materials, paying rent and utilities, increasing cash flow to cover costs for late accounts receivable, and paying for other operating expenses.
Unlike other small business loans that assist with long-term asset planning, working capital loans are short-term, meaning the payment cycle is typically six months to three years.
Calculate the total amount of financing you need to cover your current expenses.
Fill out our quick form to get matched with trusted financing providers.
Apply directly with one of our partners.
Get a decision and receive funds directly in your bank account.
The benefits of
working capital loans
There are four main benefits of working capital loans:
Take care of immediate needs
Working capital business loans can cover all your immediate needs to keep operations running, including covering payroll, hiring part-time or full-time staff, paying utilities, getting equipment or computers repaired, renting replacements temporarily, and other time-sensitive and immediate expenses.
Get funding fast
Working capital loans are designed to cover immediate costs, so their approvals are generally quick and simple. Whether a vendor’s invoice is due or you need to pay rent, you could be approved and funded for a working capital loan within 24 hours3 in order to cover the costs.
Flexible repayment terms
Your customized loan is tailored to your needs and repayments can generally be made on a daily, weekly, or monthly basis. Your repayment frequency and interest rate are based on your creditworthiness. Our partners work closely with you to determine what works best for your business.
High approval rates
Working capital loans have a higher approval rate because they’re used for immediate expenses and get paid back quickly. By showing how much cash you normally have on hand, accounts receivable, fiscal responsibility and business acumen, you can lower your risk and increase your chances of approval.
One benefit of getting a working capital business loan through one of our partners is quick access to a cash flow boost, so you can meet current financial obligations and increase liquidity for new and time-sensitive growth opportunities.
We’ve taken the time to gather the best financing providers and vet their solutions, so you don’t have to. We also know what each partner is looking for and which is best for each credit profile, so when you choose SmallBusinessLoans you can be confident that you’re matched with a right-fit solution.
How can you use a working capital loan?
You can use your working capital loan to cover your immediate needs and keep operations running. Here are some ways you could use this kind of financing:
As long as the expense is immediate and for operations, a working capital business loan can be used to cover it.
Our financing partners for small and mid-sized businesses have been curated to serve your needs. They can provide you with fast funding to cover your day-to-day operations and keep your business on firm financial footing.
We help business owners in every industry get working capital loans
Our partners offer financing options for just about every industry. Check out the different areas served and the unique solutions offered.
Construction loans and financing
Buy equipment, purchase materials, or hire workers.
Commercial trucking loans and financing
Expand your fleet or handle maintenance costs.
Agricultural loans and financing
Purchase land or upgrade equipment.
Medical practice loans and financing
Cover insurance costs or upgrade software systems.
Landscaping loans and financing
Maintain capital during slow seasons or hire employees.
Auto service shop loans and financing
Purchase diagnostic equipment, expand your bays, or keep parts inventory fully stocked.
Restaurant loans and financing
Upgrade kitchen equipment, manage food and labor costs, or fund renovations and expansion.
Loans and financing for other industries
Our partners have short-term business loan options for numerous other industries, too.
How do I qualify and apply for a working capital business loan?
To qualify for a working capital loan, you generally need to have:
At least
3 months
Minimum
$50,000
Poor to
excellent credit
If you meet the qualifications above, finding the right working capital loan is a quick and easy three-step process.
3 steps are all you need to unlock real solutions
Frequently asked questions
Can I get a working capital loan with poor credit?
Yes, you can get a working capital loan with poor credit if you have strong financial records, assets to use as collateral, and other ways to reduce your risk as a borrower. Each lender is different and if a working capital business loan is not available because of a poor credit score, we can help you find a different form of small business financing.
What is the difference between a term loan and a working capital loan?
The difference between a working capital loan and a term loan is that working capital loans are typically short-term with high interest rates and used for immediate needs. Meanwhile, a traditional term loan is usually extended over a longer period with lower interest rates, takes longer to get approved, and is used for long-term planning.
Can I get a working capital loan for my start-up?
Yes, you can get a working capital loan for a start-up if you meet the qualifications of a given lender or financing provider. In the event you don’t meet all the typical requirements, like three months in business, at least $50,000 in annual gross sales, and a good credit score, a personal guarantee may help. If you get declined for a working capital loan, an SBA start-up loan may be a good alternative.