What is a working capital loan?
A working capital loan provides short-term financing to cover a business's day-to-day operational expenses — payroll, rent, utilities, inventory, marketing, and other costs that keep the business running. Unlike equipment loans or real estate mortgages, working capital loans are designed for operational needs, not long-term asset purchases.
How is a working capital loan different from an MCA?
Both address immediate cash flow needs, but they differ structurally. A working capital loan has a defined repayment term and fixed payments. An MCA is technically a purchase of future receivables with a factor-rate cost and flexible repayment tied to daily revenue. Working capital loans may carry lower costs for qualified borrowers but are less flexible.
How fast can I get a working capital loan?
Most working capital loans through our network fund within 24–72 hours. Same-day funding is available for qualified applicants. This is significantly faster than traditional bank working capital lines, which can take 30–90 days to approve.
What can I use working capital for?
Any operational expense — payroll, rent, inventory purchases, supplier payments, marketing campaigns, utility bills, short-term staffing, seasonal preparation, or bridging gaps between receivables. Working capital is the most flexible use-of-funds category.
Do I need collateral for a working capital loan?
Typically no. Most working capital loans under $500,000 are unsecured — they are approved based on your business revenue and cash flow, not personal or business assets. Larger amounts may require a general business lien (UCC filing) but not specific asset collateral.
What credit score do I need?
Working capital loans through our network accept profiles starting at 500 FICO for smaller amounts. Competitive rates become available at 620+. Higher scores and stronger revenue unlock better rates and terms.
How much working capital can I borrow?
Working capital loans range from $10,000 to $2,000,000 depending on your revenue, time in business, and credit profile. Most small businesses access $25,000–$250,000 for operational needs.
Is a working capital loan the same as a business line of credit?
No. A working capital loan is a lump-sum disbursement repaid over a fixed term. A business line of credit is revolving — you draw what you need, repay it, and draw again. Lines of credit are more flexible but often require stronger credit profiles.
Can seasonal businesses get working capital loans?
Yes — seasonal businesses are strong candidates because working capital is exactly what they need to prepare for peak seasons, hire staff, and stock inventory before revenue arrives. Repayment timing can sometimes be structured to align with revenue peaks.
What documents are required?
Typically 3 months of business bank statements, a completed application with basic business information, and a government-issued ID. Larger loans may require tax returns and a profit-and-loss statement.