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Best Working Capital Loans September 2023

A working capital loan is a type of financing that is used to meet a company's short-term operational needs. This type of loan is used to address a company's immediate cash flow needs, such as paying for inventory, covering payroll, or managing accounts payable. Working capital loans are typically unsecured, meaning they do not require collateral, and have a short-term repayment period ranging from a few months to a few years. The loan amount is based on the difference between a company's current assets and liabilities, which is known as working capital.

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Key Facts

  • Credit Score: 550
  • Age of business: 12+ months
  • Monthly revenue: Varies
  • US citizenship: Required for all owners
  • Term length: Varies

Pros

pros iconMultiple financing options designed to help businesses grow and succeed

pros iconConvenient shop and comparison tool

pros iconFree service

pros iconMatched with experienced Funding Advisor who helps every step of the way

Cons

cons iconLoan terms and conditions not disclosed until after completing an application

cons iconOnce deciding upon a product, you’ll work with the lender instead of Fundera

cons iconMust have been in business for at least 1 to 4 years to qualify for funding

cons iconPotentially high interest rates and eligibility requirements

LIMITATION OF LIABILITY AND WARRANTY DISCLAIMER. 10.1 Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL FUNDERA (OR OUR SUPPLIERS) BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY LOST PROFITS, LOST DATA, COSTS OF PROCUREMENT OF SUBSTITUTE PRODUCTS, OR ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES ARISING FROM OR RELATING TO THESE TERMS OR YOUR USE OF, OR INABILITY TO USE, THE SITES OR SERVICE, EVEN IF FUNDERA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ACCESS TO, AND USE OF, THE SITES OR SERVICE IS AT YOUR OWN DISCRETION AND RISK, AND YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE TO YOUR DEVICE OR COMPUTER SYSTEM, OR LOSS OF DATA RESULTING THEREFROM. TO THE MAXIMUM EXTENT PERMITTED BY LAW, NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, OUR LIABILITY TO YOU FOR ANY DAMAGES ARISING FROM OR RELATED TO THE SERVICE OR THESE TERMS OF SERVICE (FOR ANY CAUSE WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, DAMAGES ARISING FROM YOUR FAILURE TO PROVIDE FUNDERA WITH ACCURATE INFORMATION OR TO CORRECT INACCURATE VERIFIED DATA, OR A THIRD PARTY’S FAILURE TO CORRECTLY VERIFY SUCH INFORMATION, AND REGARDLESS OF THE FORM OF THE ACTION), WILL AT ALL TIMES BE LIMITED TO A MAXIMUM OF ONE HUNDRED US DOLLARS (U.S. $100). THE EXISTENCE OF MORE THAN ONE CLAIM WILL NOT ENLARGE THIS LIMIT. YOU AGREE THAT OUR SUPPLIERS WILL HAVE NO LIABILITY OF ANY KIND ARISING FROM OR RELATING TO THESE TERMS OF SERVICE. SOME JURISDICTIONS DO NOT ALLOW THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU. 10.2 No Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THESE TERMS OF SERVICE, THE SITES AND THE SERVICE PROVIDED HEREUNDER BY FUNDERA IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, AND FUNDERA (AND OUR SUPPLIERS) EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES AND CONDITIONS OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, QUIET ENJOYMENT, ACCURACY OR NON-INFRINGEMENT. WE (AND OUR SUPPLIERS) MAKE NO WARRANTY THAT THE SITES AND THE SERVICE WILL MEET YOUR REQUIREMENTS, WILL BE AVAILABLE ON AN UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE BASIS, OR WILL BE ACCURATE, RELIABLE, AND/OR FREE OF VIRUSES OR OTHER HARMFUL CODE, COMPLETE, LEGAL, OR SAFE. IF APPLICABLE LAW REQUIRES ANY WARRANTIES WITH RESPECT TO THE SITE AND THE SERVICE, ALL SUCH WARRANTIES ARE LIMITED IN DURATION TO NINETY (90) DAYS FROM THE DATE OF FIRST USE. NO ADVICE OR INFORMATION PROVIDED BY FUNDERA SHALL CONSTITUTE ANY WARRANTY WITH RESPECT TO YOUR USE OF THE SERVICE. FUNDERA DOES NOT GUARANTEE OR ASSUME ANY RESPONSIBILITY FOR ANY SERVICE ADVERTISED OR OFFERED BY ANY THIRD-PARTY SERVICE RELATING TO EITHER FUNDERA OR ANY FUNDING PROVIDER. FUNDERA MAKES NO GUARANTEE AS TO THE NUMBER OF FUNDING PROVIDERS WITH WHOM YOU MAY BE MATCHED USING THE SERVICE, NOR DOES FUNDERA GUARANTEE THAT YOU WILL BE ABLE TO OBTAIN BUSINESS FUNDING IN ANY AMOUNT USING THE SERVICE, INCLUDING FROM ANY FUNDING PROVIDER FOR WHOM YOUR VERIFIED INFORMATION PROVISIONALLY PREQUALIFIES YOU FOR SUCH FUNDING. YOU UNDERSTAND AND AGREE THAT FUNDERA IS NEITHER A FUNDING PROVIDER NOR A FINANCIAL ADVISOR, AND NOTHING ON THE SITES IS INTENDED TO BE A SUBSTITUTE FOR PROFESSIONAL FINANCIAL ADVICE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. SOME JURISDICTIONS DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU. 10.3 Not a financial planner, investment adviser or tax advisor. NEITHER FUNDERA NOR THE SERVICES ARE INTENDED TO PROVIDE LEGAL, TAX, INVESTMENT OR FINANCIAL ADVICE. FUNDERA IS NOT A FINANCIAL OR TAX PLANNER, AND DOES NOT OFFER LEGAL ADVICE TO ANY USER OF THE SERVICE. ALTHOUGH THE SERVICE MAY PROVIDE DATA, INFORMATION, OR CONTENT RELATING TO INFORMATIONAL SERVICES FOR U.S. BASED SMALL BUSINESS OWNERS INCLUDING INFORMATION AND REFERRALS FOR CERTAIN FINANCIAL SERVICES, YOU SHOULD NOT CONSTRUE ANY SUCH CONTENT AS TAX, LEGAL, FINANCIAL, OR INVESTMENT ADVICE.

  • $5K-$5M Loan Amount
  • 550 Min Credit
  • 7-30% APR
  • 12+ Months Time in Business
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Key Facts

  • Multiple types of funding, nationwide
  • Get help from a loan representative
  • Highly rated customer support

Pros

pros iconEasy way to compare business loans from over 35 lenders

pros iconPartners with large, established lenders such as Bluevine, OnDeck, and Funding Circle

pros iconLoan decisions are made quickly after an easy application process

Cons

cons iconNo transparency of loan terms readily available

cons iconLoan funding can take up to one week, which is longer than competitors

cons iconCollateral is required from some of BusinessLoans.com’s lending partners

BusinessLoans.com allows users to obtain information about certain loans, financial products, and services offered through third-party service providers and advertisers. BusinessLoans.com is not an agent or advisor to you or any other third party.

You acknowledge and agree that our website is solely an intermediary to connect users with service providers to obtain information about certain financial products and services. You acknowledge and agree that we are not a financial institution, credit card issuer, or other financial service provider and that any information or advice made available through the Services is for informational purposes only.

We do not, and will not, create any coverage or credit decision with any service provider that may be referred to you through our Services. We do not (i) validate the licensing, certification, or other qualifications of Service Providers that you may encounter through our Services, (ii) guarantee the terms or rates offered by any third party through or on our Services, or (iii) issue credit cards or any other financial products.

We are not responsible for the conduct or policies of the service providers. The terms and rates provided by any service provider will be subject to the applicable terms and conditions of the products and services offered by the service providers.

  • $5K-$3M Loan Amount
  • 640 Min Credit
  • 12+ Months Time in Business
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Key Facts

  • Eligibility: Businesses with less than 500 employees
  • Max loan amount: $10 million
  • Interest rate: 0.5%
  • Loan forgiveness for: payroll, mortgage interest, rent, utilities

Pros

pros iconFlexible on credit score. Getting approved is based more on strong balances and revenue.

pros iconVariety of loan types available

pros iconSoft credit check for the initial application

pros iconSave time with offers from multiple lenders

Cons

cons iconApplication process is a bit long for a marketplace because it requires 3 bank statements

cons iconSince Lendio is not a direct lender, the terms only become clear after applying for a loan

  • $1K-$5M Loan Amount
  • 580 Min Credit
  • 12+ Months Time in Business
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Key Facts

  • Credit score: 625
  • Age of business: 12+ months
  • Monthly revenue: $8,000
  • Personal guarantee: Required
  • US citizenship: required, or permitted residency
  • Term length: 3-24 months

Pros

pros iconMore straightforward to obtain a loan than with conventional banks

pros iconVery quick funding available

pros iconFull fee transparency

Cons

cons iconLonger initial application process than competitors – 10 minutes

cons iconOrigination fees applied of up to 4%

cons iconLines of credit incur a $20 monthly charge

cons iconExpensive APRs

Same Day Funding is only available in certain states for term loans up to $100K. The eligibility window is Monday-Friday before 10:30am EST. If checkout completes before 10:30am EST, funds will be available by 5pm local time the same day. If checkout occurs after 10:30am EST or on a weekend or bank holiday, it will not qualify for Same Day Funding, and funds will be deposited within 2-3 business days. Eligibility rules around creditworthiness and length of term loan apply.
Eligibility for the lowest rates is limited, available only to businesses with the strongest creditworthiness and cash flows, and typically companies that have shown an excellent payment history on prior loan products with OnDeck. The average rate for term loans is 62.1% APR, and the average rate for lines of credit is 48.9% APR. Averages are based on loans originated in the half-year ending March 31, 2022.

  • $5K-$250K Loan Amount
  • 625 Min Credit
  • 12+ Months Time in Business
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Key Facts

  • Credit score: depends on lender
  • Age of business: min. 12 months
  • US citizenship: required
  • Repayment terms: depends on lender
  • Term length: varies

Pros

pros iconMultiple business financing options available, ranging from small business loans to commercial real estate loans to lines of credit

pros iconStreamlined, intuitive application process with lender comparison option

pros iconTime to funding could be within 24 hours

pros iconTop-notch customer service team of finance professionals

Cons

cons iconAs a marketplace, specific terms, rates, and fees are not indicated until you apply with a partner lender

By indicating your agreement to these terms (for instance, by clicking the button), you, in your individual capacity, represent:

  • That you are authorized on behalf of the business listed in the application (the “Applicant”) to make and submit this application, to submit any accompanying documents, and to provide the consent and authorizations set out below.
  • That, should this application be approved, you are authorized to sign business financing documentation on behalf of the Applicant. Please be advised that some business financing products may require a personal guaranty.
  • That all information provided to Lendzi and/or its trusted partners is accurate and complete and that you will immediately notify Lendzi of any change in such information.
  • That Lendzi and its trusted partners may rely on the accurateness of the information provided.
  • That Lendzi may share all information and documents, excluding consumer credit reports, with its trusted partners to fulfill Applicant’s requests.
  • That Lendzi and its trusted partners may share information they have about you and Applicant at any time for administrative, marketing and servicing purposes as permitted by law and that your personal information may be shared with the Applicant as part of the underwriting process.
  • That you and the Applicant waive and release any claims against any information provided relating to the release of information.
  • That you agree to and accept all terms of the Lendzi Credit Gathering Authorization found here.

BY USING DH & RK Investments LCC dba Lendzi’S WEBSITE AND/OR REQUESTING THAT Lendzi CONTACT YOU FOR MARKETING PURPOSES, YOU AGREE TO ARBITRATE ALL CLAIMS BETWEEN YOU AND Lendzi (AND ANY ENTITY CALLING ON BEHALF OF Lendzi) ON AN INDIVIDUAL BASIS ONLY AND NOT AS A PART OF ANY CLASS. A “CLAIM” IS ANY CASE, CONTROVERSY, DISPUTE, TORT, DISAGREEMENT, LAWSUIT, LEGAL ACTION, OR CLAIM NOW OR HEREAFTER PENDING BETWEEN YOU AND Lendzi, INCLUDING BUT NOT LIMITED TO ANY ALLEGED STATE OR FEDERAL STATUTORY VIOLATION, OR ANY DISPUTE OVER THE INTERPRETATION OF THE TERMS OF APPLICATION OR THE ARBITRABILITY OF ANY CLAIM PURSUANT TO THE TERMS OF APPLICATION. THIS AGREEMENT TO ARBITRATE GOVERNS ALL PAST, CURRENT AND PROSPECTIVE INTERACTIONS WITH Lendzi. YOU AGREE THAT YOU ARE WAIVING ALL RIGHTS TO: (A) A TRIAL BY JURY; (B) PARTICIPATE IN A CLASS ACTION LAWSUIT OR CLASS ACTION ARBITRATION; AND (C) BRING AN ACTION AGAINST Lendzi IN A COURT OF LAW. YOU MAY INDIVIDUALLY ARBITRATE ANY CLAIM AGAINST Lendzi IN ANY JURISDICTION IN THE UNITED STATES. THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION THEN IN FORCE SHALL GOVERN THE ARBITRATION (provided, however, that the terms of the Lendzi Terms of Application and Terms of Use shall control over any inconsistency between the Rules of the American Arbitration Association and the Terms of Application). The arbitrator shall have authority to interpret the Terms of Application, including but not limited to the authority to decide whether any claim is arbitrable under the Terms of Application and to decide issues related to the scope of arbitration, the rules of arbitration, the arbitrator’s jurisdiction, and the enforceability of the Terms of Application. You agree that the Terms Application involves commerce under 9 U.S.C. Sections 1 et seq. and that this Arbitration Clause is governed by federal law, including the Federal Arbitration Act. The remainder of the Terms of Application is governed by the laws of the state of Utah, as provided in the Terms of Use.

YOU UNDERSTAND THAT THIS IS AN APPLICATION FOR A COMMERCIAL LOAN AND THAT ANY LOAN FUNDS OFFERED TO APPLICANT MAY NOT BE USED FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES.

IMPORTANT INFORMATION ABOUT OPENING A NEW ACCOUNT

Federal law requires all financial institutions to obtain, verify and record information that identifies each person and entity that opens an account or establishes a relationship with such institution, including name, address, date of birth, social security or tax identification number and other information that will allow the financial institution to verify your and/or the entity’s identity. You may also be asked to provide identifying documents.

  • $1K-$1M Loan Amount
  • 500 Min Credit
  • 12+ Months Time in Business
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Key Facts

  • Credit Score: 600
  • Age of business: 6+ months
  • Monthly revenue: $20,000
  • Origination fee: 0-2%

Pros

pros iconQuick approval time

pros iconFast time to funding

pros iconGood track record

pros iconFlexible repayment options

Cons

cons iconNo transparency on rates

cons iconAdditional fees sometimes necessary

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

  • $10K-$500K Loan Amount
  • 600 Min Credit
  • 6+ Months Time in Business
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Key Facts

  • Credit score: 550
  • Age of business: 18+ months
  • US citizenship: Required for all owners
  • Repayment terms: Varies
  • Term length: 3-60 months

Pros

pros iconFast time to funding

pros iconLow barrier to entry

pros iconQuality customer support team

pros iconGood track record

Cons

cons iconNot the most competitive rates

*Small Business Financial Solutions, LLC offers term loans and lines of credit (pursuant to its California Lenders License No. 603-I855) and factoring in California. Small Business Financial Solutions, LLC and Rapid Financial Services, LLC offer term loans, lines of credit and factoring outside of California. Commercial Servicing Company, LLC arranges term loans and lines of credit in California (pursuant to its California Finance Lenders License No. 603-J299) and arranges term loans, SBA loans, lines of credit, factoring, asset-based loans, commercial real estate loans and business credit cards outside of California.

  • $5K-$1M Loan Amount
  • 550 Min Credit
  • New Time in Business
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Pros

pros iconFunding available within 24 hours.

pros iconVariety of financing options available.

pros iconSupports businesses with potential and robust revenues.

Cons

cons iconMay be an expensive option due to fees.

cons iconEvery state may not have the same financing options.

cons iconNo live chat option on their website.

Biz2Credit Disclosure: By accessing or applying for Business Finance Services from Biz2Credit relating to your potential business funding or other business financing products, you expressly accept and agree to both our Terms of Service and the Business Finance Services Terms & Conditions. The rates and terms and conditions here in are not a commitment or guaranty by Biz2Credit Inc. or any of its affiliates to provide financing, and are subject to change at any time. Not valid in all states. All products and services are subject to eligibility and other conditions and restrictions. Biz2Credit Inc. is not a lender. All terms and conditions and credit decisions are at the sole discretion of the lender. Offered for commercial uses to businesses only. Other terms, conditions, fees and restrictions may apply.

  • $25K-$6M Loan Amount
  • 575 Min Credit
  • 24+ Months Time in Business
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Pros

pros iconSuccessful applications receive funding in less than 72 hours

pros iconDiscounts available for early repayment of loans

pros iconLow credit threshold for loan eligibility

pros iconGood customer service and A+ BBB rating

Cons

cons iconUses factor rating instead of APR, which makes comparing with other loan offers difficult

cons iconOrigination fee charged

cons iconOnly short-term loans are available

cons iconThe minimum sales requirement of $15,000 per month will be difficult for some businesses

Fora Financial provides business capital, including business loans and Revenue Based Financing, directly and through a network of unaffiliated third-party funding providers. Business loans are offered by Fora Financial Business Loans LLC or, in California, by Fora Financial West LLC, a licensed California Finance Lender, License No. 603J080. Fora Financial Advance LLC offers Revenue Based Financing. Business capital is also made available through US Business Funding, a sister company of Fora Financial. The products and amounts offered vary by state.

  • $5K-$1.4M Loan Amount
  • 500 Min Credit
  • 6+ Months Time in Business
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Pros

pros iconUltra-fast funding available

pros iconA low minimum credit score of 625

pros iconAvailable to businesses who have been active for 6 months

pros iconOnly pay for the portion of the line of credit that you use

Cons

cons iconThe rate of borrowing is expensive

cons iconOnly two repayment terms (6 and 12 months)

cons iconThe monthly revenue requirement of $10,000 will price out many businesses

Bluevine is a financial technology company, not a bank. Banking Services provided by Coastal Community Bank, Member FDIC. Bluevine accounts are FDIC insured up to $3 million per depositor through Coastal Community Bank, Member FDIC. The Bluevine Business Debit Mastercard® is issued by Coastal Community Bank, Member FDIC pursuant to a license from Mastercard International Incorporated and may be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Application is subject to approval. No monthly or maintenance fees. Card Replacement Fees and Wire Transfer Fees may apply.

Certain Bill Pay funds, including Bill Pay with Credit Card, are held by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). Banking Services for payments made via ACH or wire from the Bluevine Business Checking Account are provided by Coastal Community Bank, Member FDIC.

Bluevine’s Flex Line of Credit is issued by Celtic Bank, a Utah-chartered Industrial Bank, Member FDIC. Applications are subject to credit approval. Rates, credit lines, and terms may vary based on your creditworthiness and are subject to change. Additional fees apply.

PPP loans are made by one or more approved U.S. Small Business Administration (SBA) lenders. Loan agreements will identify the issuing lender to small businesses at signing. Qualified applications will be submitted to the SBA as soon as possible. Bluevine does not guarantee that applications will be processed and submitted before PPP funds are no longer available. Approval and loan forgiveness are subject to your availability to meet government-set eligibility requirements.

Certain financing may be made or arranged pursuant to California Financing Law-License No. 6054789.

  • $6K-$250K Loan Amount
  • 625 Min Credit
  • 6+ Months Time in Business
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Pros

pros iconReceive a business line of credit within 24 hours

pros iconFewer hurdles to go through than with traditional loan financing

pros iconAccepts businesses with only six months of trading history

pros iconNo fees or prepayment penalties

Cons

cons iconHigh APRs compared to traditional business loan funding

cons iconOnly short-term loans are available

cons iconNot practical for equipment purchasing, only working capital management

Fundbox makes capital available to businesses through business loans and lines of credit made by First Electronic Bank, a Utah chartered Industrial Bank, member FDIC, and invoice-clearing advances, business loans, and lines of credit made directly by Fundbox.

  • $1K-$150K Loan Amount
  • 600 Min Credit
  • 6+ Months Time in Business
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Pros

pros iconLow barrier to entry

pros iconQuick time to funding

pros iconEasy application process

pros iconGood track record

Cons

cons iconNot too transparent with loan terms

cons iconOnly short term loan

By submitting your information, you (a) consent to receiving calls and messages, including autodialed or pre-recorded calls, from Reliant Funding using the information you provided above, including via wireless telephone numbers that could result in charges to you, (b) acknowledge that no purchase of goods or services is contingent upon such consent, (c) acknowledge that telephone calls to and from Reliant Funding may be recorded, (d) consent to receive email correspondence including advertisements for business funding and other products or services, and (e) acknowledge that you have read Reliant Funding’s Privacy Policy and understand that you may opt-out of receiving communications of your choice from Reliant Funding as provided in the Privacy Policy.

  • $5K-$400K Loan Amount
  • 525 Min Credit
  • 6+ Months Time in Business
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Pros

pros iconThe entire process, from completing the initial application to receiving funds, is fast.

pros iconThe company’s financial experts offer ongoing support to their customers, even after they’ve successfully received financing.

pros iconEven borrowers with bad credit may qualify for small business loans, equipment financing, and merchant cash advances through One Park Financial’s 20+ partners.

pros iconUp to $500,000 in financing is available to small and mid-sized business owners.

pros iconMost industries are accepted.

Cons

cons iconAs a marketplace the exact terms, rates, and fees are not clearly disclosed until after completing an application.

cons iconLoan term length typically range from four to 12 months, which might be too short for borrowers of larger amounts.

cons iconFinancing solutions are not available in California.

cons iconAlthough it’s possible to qualify with a closed bankruptcy or bad credit, these financing solutions may be more expensive.

  • $5K-$500K Loan Amount
  • 500 Min Credit
  • 3+ Months Time in Business
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Pros

pros iconStartups and existing businesses can get funding

pros iconSimple online process

pros iconFast approval time and funding period

pros iconNo collateral necessary

pros iconNot too many loan requirements

Cons

cons iconNot much customer support at the weekend

All funding are subject to credit approval and normal underwriting standards. Minimum and maximum funding amounts, rates, fees, terms and collateral requirements are subject to specific guidelines and may change without notice. All funding are made under Torro Funding LLC of Utah or its affiliate investors. Available cash amounts may vary and collateral requirements apply.

  • $1K-$500K Loan Amount
  • 6+ Months Time in Business
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Pros

pros iconDeal with an experienced funding advisor

pros iconNo minimum credit score needed

pros iconQuick funding time

pros iconDecent track record

Cons

cons iconNot transparent with APRs and fees

cons iconNot always the best option for startups

Some information collected from you is required and some is optional; some will remain private and some will be shared with third parties. Additional information may be gathered during your subsequent use of the Sites, whenever you choose to provide it. Certain Personal Information must be supplied to determine eligibility for financial products and to verify and guard against potential fraud. We will use this information to request a credit report from a credit bureau to process your application as well as to help assess your funding request in the context of your overall financial situation. We will also use your required and optional information to facilitate activities and transactions that need to occur during the funding process.

  • $5K-$250K Loan Amount
  • 300 Min Credit
  • 6+ Months Time in Business
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Pros

pros iconCompares funding offers through multiple lenders to secure the most favorable terms for the borrower

pros iconAssists businesses with improving their credit

pros iconHas a good reputation and positive online reviews

Cons

cons iconDoes not disclose business loan interest rates on website

cons iconNo personal loans offered

cons iconProvides matching services with lenders, no customer support

  • $5K-$500K Loan Amount
  • 500 Min Credit
  • 4+ Months Time in Business

Working Capital Loans Explained

Working capital refers to the amount of cash and assets available compared to the business’ liabilities. You can increase capital in many ways, such as by increasing profits, reducing expenses, and freeing up cash in specific areas. Or you can take out a working capital loan.

Many businesses use working capital loans to bridge short-term financial gaps or to scale their company for ongoing or future success. Other common uses for these loans include:

  • Covering urgent bills or debts related to the business
  • Inventory restocking (especially during periods of high sales)
  • Payroll or invoice payment
  • Production costs
  • Rent or operational expenses
  • Cash flow management
  • Equipment purchasing
  • Other handling expenses

You can get a working capital loan through a bank, online lender, credit union, or factoring company. Different lenders offer different types of business loans for working capital. The terms, rates, fees, and eligibility requirements vary based on the lender, loan type, and business.

Secured loan: A business loan for working capital may also require you to put up collateral in the form of the company’s assets. This makes them a type of secured loan, but it may also make them easier to obtain. This is because the lender can take the collateral if you fail to pay back what you owe.

Short-term: Most working capital loans are meant for short-term use. They also often come with relatively lower annual percentage rates (APRs) than other financing.

Tolerant eligibility: The eligibility requirements tend to be more lenient compared to long-term loans. Some private online lenders will even work with borrowers with poor credit or limited credit history.

Lump-sum: Typically, lenders issue working capital loans in a lump-sum payment. Depending on the loan, you will either need to pay it back over time or upon request.

Working Capital Loan Types

Since “working capital loan” is often used as a catch-all term for different types of financing, it’s important to compare different options. That way, you can find the best business capital loans for you. Here are the most common types of business loans for working capital:

  • Term loans: Sometimes called business loans, these loans must be repaid over a period of time in installments. Payments usually include the principal (amount borrowed) plus interest. Typically, you’ll receive a lump-sum payment upfront. These loans range from a few thousand dollars to over a million dollars. Interest rates can vary from around 6% to 99%, depending on the lender.
  • SBA loans: The Small Business Administration offers different types of business loans, such as 7(a) loans, 504 loans, and microloans. 7(a) loans are the most common option and can be used to handle business debt and other working capital needs. These loans work similarly to other term loans with the benefit of being partially guaranteed by the government.
  • Business lines of credit: Like credit cards, these are a revolving form of credit. You can borrow repeatedly from them up to the credit limit. You’ll need to repay what you borrow plus interest.
  • Invoice factoring: You may be able to use unpaid invoices to get a business loan for working capital. A lender will purchase the invoice from you and collect payment when the invoice is fulfilled. You’ll receive the remaining amount minus any fees. This is a quick way to get funds when you need them.

How to Get a Working Capital Loan

The process of getting a business loan for working capital depends on the lender and loan type. Here’s a general overview of what to expect:

  1. Evaluate your needs. Review your business finances and plan for what you need to cover. Determine how much you need and how the new loan or line of credit will work into your finances. Make sure you can repay what you borrow.
  2. Check the eligibility requirements. You’ll need to meet certain criteria to qualify for a working capital loan. This includes things like a minimum time in business, good credit, and minimum annual revenue. Be prepared with documentation verifying your personal, contact, income, banking, and business details.
  3. Compare lenders. Shop around for lenders to find the best business capital loans. Choose several lenders and compare their fees, requirements, terms, loan types, rates, and customer reviews.
  4. Get prequalified. If possible, get prequalified for business financing. This won’t affect your credit score, but it will give you a better idea of your financing options.
  5. Apply. After choosing a lender and loan option, fill out the formal loan application. Depending on the lender, you may be asked to provide additional information via phone, online, or in person.
  6. Wait for the decision. It can take several days or weeks to hear back about the lender’s decision. If approved, receive the funds and use them as intended. You may also need to start making payments on the loan.

Working Capital Loans: What to Consider

Here are the main things to consider when taking out a working capital loan:

  • Loan type and purpose: Different loan options are meant for different reasons, so choose the right one for your situation.
  • Loan amount: How much you can borrow depends on things like the lender, your credit, and your annual revenues. Even if you qualify for a higher amount, only borrow what you need and can afford to repay. If you don’t qualify for what you need, consider raising your credit score and trying again later.
  • Term: Most working capital loans have a shorter repayment period. A short term could mean paying less in interest, but could be harder to pay back in a hurry. Choose a term that fits your needs and financial situation.
  • Interest and other fees: These loans usually come with interest charges. Some lenders charge additional fees like origination or prepayment penalties. These can add to the total cost of the loan.
  • Time to funding: Some lenders provide funding faster than others. Depending on the financing you choose, you could receive funds the same business day or in a few weeks.
  • Secured or unsecured: Secured loans have collateral tied to them, so they’re easier to qualify for but riskier to the borrower. Unsecured financing is harder to get, but you won’t risk losing any assets if you default on payments.

Working Capital Loans Pros and Cons

If you’re thinking about getting a business loan for working capital, there are several benefits and drawbacks to consider first.

Working Capital Loans Pros

  • Flexible funding option to help your business grow or to cover financial gaps
  • Many types of business financing are available
  • You may qualify for better rates or higher loan amounts with good credit or considerable business revenue
  • Shorter terms typically have fewer requirements

Working Capital Loans Cons

  • Loans for smaller businesses may have higher interest rates or eligibility requirements
  • Terms tend to be shorter than other types of financing
  • Can usually only be used for business purposes

Should You Get a Working Capital Loan?

A working capital loan may be right for you if you:

  • Need short-term funding to get your business through temporary financial difficulties
  • Have a highly profitable business
  • Have good credit, make sufficient revenue, and have been operational for at least 6 months
  • Want to cover necessary expenses for business operations and growth
  • Have a solid plan for repaying what you borrow

Do some research to determine the best loan option for you and your business.

Average Working Capital Loan Rates

Although rates can vary by lender, here are some of the best business capital loans from reputable lenders:

Lender* Typical APR (Fixed) Loan Term

Loan Amount or LOC Limit

Minimum Time in Business

Recommended Minimum Credit Score

Biz2credit 4% to 36% Up to 7 years $25,000 to $2M+

6 months

575

Fundera

7% to 25%

3 to 18 months

$10,000 to $1M+

1 year

630

OnDeck

Starting at 29.90%

Up to 24 months

$5,000 to $250,000

1 year

625

National Funding

Variable

4 to 24 months

$5,000 to $500,000

6 months

600

Quickbridge

Variable

Variable

Up to $500,000

6 months

580

*Rates are subject to change