Find the best business loan rates (2021)

By Erin Ryan Updated on August 22, 2022

Where to Find Working Capital Loans for Your Small Business Needs

A working capital loan can help you cover business bills and expand your operations. Find out where to find a working capital loan for your small business, what specific types of working capital lending options are available and what you need to apply.

Lender Best for Maximum Loan Amount Terms  Minimum Time in Business Minimum Credit Score
OnDeck Short-term loans $250,000 Up to 24 months 1 year 600 (FICO)
Bluevine Lines of credit $250,000 Up to 12 months 6 months 625 (FICO)
Credibly Multiple financing products $400,000 Up to 18 months 6 months Not listed (approval criteria based on overall business health)
SmartBiz SBA loans $300,000 for bank term loans or $350,000 for SBA loans Up to 5 years for bank loans or 10-25 years for SBA loans 2 years 660 for bank loans or 650 for SBA loans
Kapitus High-revenue businesses Varies depending on loan type Not listed 1-2 years depending on loan type 575-685 depending on loan type

What Kinds of Working Capital Loans Are There?

While certain lenders may use the term working capital loans in reference to their operating expense funding, some offer working capital through other financing products. Specifically, working capital funding can be provided  through the following:

  • Short-term business loans: Lump sums with payoff periods typically in the range of 3-18 months
  • SBA loans: Several Small Business Administration loans can be used for working capital, including standard 7(a), CAPlines and the Export Working Capital program.
  • Lines of credit: Accounts with a set limit that can be drawn against, with funds that have been repaid typically becoming available to spend again
  • Accounts receivable financing: Funding extended as an advance against unpaid customer invoices, which serve as collateral
  • Merchant cash advances: Funding extended as an advance against deductions from future sales, which serve as collateral

Oftentimes, working capital financing options have lower limits and higher rates than loans with longer terms. However, as a result, they can be easier to qualify for and funds can be made available more quickly.

Two horses pull a wagon with dollar coins for wheels. The cover of the wagon reads “Working Capital.”

How Do You Qualify for Working Capital Loan Requirements?

Qualifying for a working capital loan can be easier than qualifying for long-term financing. Lenders consider factors such as:

  • Annual, monthly or daily revenue
  • Time in business
  • Profit margins
  • Credit score
  • Intended use of funds 

While lenders may consider credit score when evaluating working capital loan applications, this often bears less weight than other considerations such as your revenue.

5 of the Best Small Business Working Capital Loan Providers

When you’re ready to get a working capital loan for your small business, here are several top lending providers and loan options to consider.

1. OnDeck

OnDeck logo

OnDeck offers short-term loans and lines of credit to meet the working capital needs of small business owners. Eligibility requirements include at least 1 year in business, a 600 FICO score and $100,000 or more in annual revenue.

Same-day funding is available with amounts ranging from $5,000-$250,000 and repayment terms extending up to 24 months. Additionally, OnDeck does report to the credit bureaus, so on-time payments could help build your credit. 

This working capital lending provider has a 4.8-star rating on the consumer rating site Trustpilot. It’s also accredited with the Better Business Bureau (BBB), where it’s earned an A+ rating.

2. Bluevine

Bluevine logo

Bluevine is a business line of credit provider offering funding amounts up to $250,000. These working capital loan rates start at 4.8%. Payments are fixed, with installments due weekly or monthly over a 6- or 12-month period.

Working capital loan requirements for this provider’s credit line is a minimum of a 625 FICO score, 6 months in business and $10,000 in monthly revenue. 

Bluevine has earned a 4.4-star Trustpilot rating from more than 7,000 reviewers. Additionally, this working capital lending provider is accredited by the BBB where it’s earned the organization’s A+ rating.

3. Credibly

Credibly logo

Credibly offers working capital loans with factor rates starting at 1.15 and funding amounts up to $400,000. Term lengths range from 6-18 months and repayment installments are automatically deducted on a daily or weekly basis. To qualify, businesses must have at least 6 months in operation and earn a minimum of $15,000 in average monthly bank deposits. Merchant cash advances, lines of credit and long-term business loans are also available.

Credibly has a 4.8-star rating on Trustpilot. It’s also accredited with the BBB, where it’s earned the organization’s A+ rating.

4. SmartBiz

Smartbiz logo

SmartBiz offers bank term loans for working capital. Loan amounts range from $30,000-$300,000 and repayment terms extend 2-5 years. Payment installments are monthly and working capital loan rates are fixed, starting at 7.99% and going up to 24.99%. 

This working capital lending provider also offers SBA loans from $30,000-$350,000 with repayment terms spanning 10-25 years. Interest rates for working capital SBA loans range from 8.25%-9.25%. 

SmartBiz has a 4.6-star rating on Trustpilot with more than 16,000 reviews and a 4.1-star rating from ConsumerAffairs.

5. Kapitus

Kapitus logo

Kapitus is another lender offering operating capital loans. Options include revenue-based financing, SBA loans and lines of credit, among others. Minimum business requirements vary depending on the specific loan. However, requirements listed on the lender’s home page include at least a 625 credit score, a minimum of 2 years in business and an average annual revenue of at least $250,000.

Kapitus has a 4.6-star rating on Google from more than 350 reviewers as well as a 4.7-star Trustpilot rating.

What Should You Look for in Working Capital Lenders?

When reviewing working capital lenders and loan opportunities, there are a number of criteria you can use to evaluate your options. Ask yourself the following:

  • How much cash do you need?
  • How soon do you need it?
  • What do online reviews say about the lender?
  • Which types of working capital loans does the lender you’re considering offer?
  • What are the lender’s loan limits?
  • How long are the lender’s repayment terms?
  • What type of working capital loan rates does the lender charge?
  • Does the lender charge any other fees?
  • Do you meet the loan provider’s qualifying criteria?
  • How fast is the lender’s approval process for working capital loans?
  • Compare Working Capital Loan Companies

    Fast Capital 360 can help expedite your lender review process by automatically matching you with potential working capital lending providers who meet your funding needs and prequalifying criteria.

    We work with a variety of alternative lenders offering working capital loans. The minimum criteria they require for approval includes:

    • 6 months in business
    • $200,000 in annual revenue
    • 550+ credit score

    Apply now

How Do You Apply for Small Business Capital Loans?

To apply for a small business working capital loan, you should be prepared to provide information such as the following:

  • Business description 
  • Revenue
  • 3-6 recent bank statements 
  • Recent tax returns 
  • Time in business
  • Personal information about company owners, including name, date of birth and Social Security numbers

Additionally, your lender may run a credit check. In some cases, you may be asked to provide collateral or a personal guarantee.

Different lenders will have different application requirements. Follow the specific instructions from your selected lender.

Explore the Best Working Capital Loans for Your Small Business

More and more business owners today are seeking loans to cover operating expenses. Specifically, in 2021 alone, 62% of those polled did, according to the Federal Reserve Banks’ Small Business Credit Survey

When it’s your turn to compare lenders and loan options, be sure to factor in your financing needs as well as the working capital loan rates and repayment terms you’ve been quoted. It can also be helpful to estimate the return on investment you could expect to see from your working capital loan.

Erin has more than 15 years’ experience writing, proofreading and editing web content, technical documentation, instructional materials, marketing copy, editorials, social copy and creative content. In her role at Fast Capital 360, Erin covers topics of interest to small business owners, including sales, marketing, business management and financing.
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