Find the best business loan rates (2024)

Sustain Day-to-Day Business Needs

With the increased need for capital many business owners face, it’s no wonder 58% of firms are more likely to seek financing for operating expenses than other needs, according to the State of Small Business Credit Survey

In fact, the survey noted that paying operating expenses is the No. 1 financial challenge small business owners face. Not surprisingly, this challenge leads many entrepreneurs in search of the best working capital loans. 

At Fast Capital 360, we partner with lenders throughout the country to offer you funding options that fit your business and circumstances.


What Is a Working Capital Loan?

A working capital loan is financing obtained to support a company’s daily or project-based operations.

In most cases, a working capital loan is defined by shorter terms. As such, this type of financing is not used to acquire long-term fixed assets or real estate, such as land or buildings.

How Does a Working Capital Loan for Small Business Work?

Typically, business lenders offer unsecured working capital loans, meaning they’re obtained without collateral. This is the case with Fast Capital 360. Unsecured options allow lenders to offer fast working capital loans — one of the biggest selling points of these  financing products.

Because business working capital loans are used for short-term goals and needs, they’re often repaid in fewer than 18 months.

What Are the Different Types of Working Capital Loans?

Working capital loans is an umbrella term for many types of short-term financing. As a result, there are several different types: 


When Does a Working Capital Loan Make Sense?

There are several reasons why a working capital loan might benefit your business best:

Graphic illustrating the reasons to use a working capital loan

Emergency Expenses

Entrepreneurs often seek a business working capital loan when they need extra cash to cover an emergency. For example, to pay for equipment repairs.

Seasonal Fluctuations

If you’re in an industry where your cash flow is subject to seasonal fluctuations, such as hospitality or retail, a working capital loan could be a good option to get you through the ebbs and flows.

Buy Inventory

Do you want to take advantage of an inventory sale or make a bulk purchase? This is another reason a business working capital loan could be the best option for your company.


Another good use of a fast working capital loan is if you’re looking to hire additional staff or need help covering payroll costs.

Bridge Cash Gaps

Businesses often use working capital loans when they are temporarily low on funds and need to continue to support the everyday expenses of running a business. For example, if you’re waiting on invoices or large project payouts, this type of financing could be the right fit.


What Does a Working Capital Loan Cost?

At Fast Capital 360, our working capital loan rates start at 7%. Keep in mind the amount you pay will depend on your specific working capital loan rate, funding amount and term. You can use our business loan calculator to estimate your financing payments.

Working Capital Loan Example

Congrats! You’ve found the best working capital loan for your business. Let’s say your lender has approved you for $5,000 at an 8% interest rate, just what you wanted. 

If your loan term was 6 months, using our loan calculator, your estimated monthly payment would be approximately $850. 

If your repayment terms were weekly instead of monthly, you’d be responsible for installment payments of roughly $215 a week.


How to Qualify for a Business Working Capital Loan

The stronger your credit history and finances, the easier it will be to qualify for a loan program (and the better terms you can expect).

What Our Lenders Evaluate

When evaluating applications, our working capital lenders consider a business’s cash flow and revenue. They do this by reviewing the most recent 4 months of business bank statements. Credit score and existing debt will also be considered.

Fast Capital 360 Minimum Qualifications

When compared with getting a conventional term loan, a fast working capital loan is easier to obtain, with funding available as quick as the same day of approval in some cases.

At Fast Capital 360, the best working capital loans are available to borrowers who meet the following minimum criteria:

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


Working Capital Loans Through Fast Capital 360

What Sets Us Apart

Over the years, thousands of small businesses have trusted us with their financing needs and it shows in our ratings:

“Excellent experience. Fast, efficient and friendly.” – Derek Langley
Graphic illustrating the financing amount, interest rate and funding availability of working capital loans at Fast Capital 360

How to Apply for a Fast Working Capital Loan

When you’re ready to apply for a working capital loan, we make the process fast and easy — and most importantly — you can get preapproved without impacting your credit.

All it takes is 3 steps:

  1. Tell us about yourself and your business
  2. Attach recent bank statements 
  3. Get multiple loan offers

Once you pick the offer that works for you, your working capital loan could be funded the same day as approval.


Working Capital Loan: Frequently Asked Questions

When you’re wondering how to use a working capital loan, keep in mind that you can use a business capital loan for a number of reasons, most commonly specific to operating expenses. For example, you can pay your employees and rent during lulls or purchase inventory without depleting cash reserves. Funding a company’s everyday needs is what a working capital loan is all about.

The most significant difference between term and working capital loans is how they’re obtained. Traditional term loans typically require good credit, a proven business history, high annual revenues and may require collateral. On the other hand, small business working capital loans have lower funding amounts, process quickly and are easier to qualify for. 

Another significant difference is the length of their respective terms. Business term loans can extend several years, while small business working capital loans are usually repaid in 18 months or less.

Their repayment structures differ, too. Where traditional term loans are often paid back in equal monthly installments, working capital loans often require daily or weekly payments.

Even the best working capital loans have their shortcomings. Here are benefits as well as drawbacks to consider.


  • Great for immediate, short-term needs
  • Easy to qualify and funding is quick
  • Repaid faster than long-term loans


  • Lower limits than long-term loans
  • Higher interest rates than long-term loans
  • More frequent payments can impact cash flow
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.

One application. Multiple loan offers.

Quickly compare loan offers from multiple lenders without impacting your credit score.

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