.png)
Working Capital Loan Overview
Average Loan Amount
$5K - $500K
&
Approved within?
Less Than
4 hours
What is a Working Capital Loan?
A working capital loan is a type of financing designed to cover the short-term operational needs of a business. Unlike long-term financing, working capital loans are typically repaid within a year and are used to manage fluctuations in cash flow, fund immediate expenses, or capitalize on sudden business opportunities. These loans often come with flexible repayment terms and may feature variable interest rates, which can influence the total repayment amount.
Working capital loans are crucial for both new and growing businesses, providing them the necessary funds to enhance their operational capabilities without the long-term commitment of a traditional term loan. Businesses frequently utilize these loans to increase inventory, support payroll, or even expand operational space, effectively boosting their ability to generate profit and scale efficiently. This form of financing is particularly valuable for businesses looking to maintain smooth operations while navigating seasonal sales cycles or unexpected expenses.
How to Apply for a Working Capital Loan
STEP 1
Get Pre-qualified
To get pre-qualified for a working capital loan, click the "Get started" button and enter general information about your business.
STEP 2
Await Approval
Once processed, a finance advisor will contact you to discuss the available options for which you qualify.
STEP 3
Receive Funding within 24 hours
Once approved and the offer is accepted, the funds will be directly deposited into your bank account, allowing you immediate access to capital
Documentation and Qualifications for
Working Capital Loans
Documentation Needed:
-
Application
-
Last 4 Months of Business Bank Statements
-
Business Profit & Loss Statements*
-
Business Balance Sheet*
*If needed for Inquires over $100,000
Qualifications:
-
$120,000 in annual revenue
-
6+ months in business
-
Minimum 550 credit score
Obtaining a working capital loan is streamlined thanks to relatively minimal documentation and qualification requirements. Prospective borrowers need to provide a basic application form, alongside three months of business bank statements to demonstrate the company's recent financial activity. In some cases, additional documents such as business profit and loss statements and a balance sheet may be requested by underwriting for further clarification.
As for qualifications, businesses are expected to have a minimum of $120,000 in annual revenue and at least six months of operational history. A credit score of at least 600 is typically required, ensuring that the business has a solid financial foundation. These criteria are designed to make working capital loans accessible while ensuring responsible lending practices.
Here's what other business owners are saying...
Working Capital Loans:
Pro Vs Cons
Working Capital Loan advantages
Working capital loans provide essential funds to manage daily operational costs, ensuring smooth business operations during periods of fluctuating or insufficient income.
Working capital loans are processed rapidly, allowing businesses to address their financial needs.
Obtaining working capital financing means business owners can retain full ownership of their company, unlike equity financing which involves sharing a stake of the business.
The capital from these loans can be used for a variety of urgent financial needs, including payroll, rent, utilities, or restocking inventory, thus enhancing operational flexibility.
Working Capital Loan disadvantages
Working capital loans may carry higher interest rates, particularly for businesses or owners with less-than-ideal credit profiles, reflecting a higher cost of capital.
The repayment terms for these loans are typically shorter, designed to quickly free businesses from debt
While there may be some fees associated with working capital loans, these are presented upfront allowing businesses to plan their finances effectively without surprises.
Here’s what other business owners are saying...
Our clients say Excellent
.png){kind=small}
.png)
Studies About Businesses Like Yours
Our representatives share stories of businesses they've helped secure funding for and discuss the lasting impact on their growth and future.