How much funding do you need?

How long have you been in business?

What is your annual business revenue?

We've found a match!

Looks like we have a few options that fit your needs. Continue below to see your options.

Working Capital Loans

Competitive Rates on Small Business Funding

Working capital loans are used to cover nearly any short term business funding need. With a fast working capital loan, you can fix essential equipment, upgrade software, pay vendors and cover daily operating expenses.

  • Receive funds in less than 1 business day
  • Collateral is not required to secure the funds
  • Can be used for almost any business purpose
All Loan Types

Loan Amount

Up to $500,000

Estimated Repayment Terms

3 months - 5 years

Interest Rate

Starting @ 7%

Speed of Funding

As fast as 1 day

People Calculating Financial Decisions

What Is a Working Capital Loan?

The definition of a working capital loan is financing obtained and used to support a company’s operations, daily or project-based. In most cases, a working capital loan is defined by shorter terms.

Your business can use this type of loan for a number of reasons. You can pay your employees and rent during your annual lulls, or you can purchase a vital piece of equipment without depleting the working capital you currently have.

How Does It Work?

How Does a Working Capital Loan Work?

Working capital loans often work as bridge loans. They aren’t used to make investments or purchases that focus on the long-term benefit of the business. Instead, these loans are meant to cover regular operational costs like rent, payroll and debt payments.

Typically, working capital loans for small businesses are unsecured, meaning they’re obtained without collateral. This allows lenders to fund fast — one of the biggest selling points of working capital financing products.

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

The Difference Between Term and Working Capital Loans

The greatest difference between term and working capital loans is how they’re obtained. Traditional term loans require good credit, a proven business history, high annual revenues and often collateral. Small business working capital loans are smaller, process quickly and have less stringent requirements.

Another significant difference is the length of their respective terms. The length of a business term loan can extend anywhere from 1-25 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 paid back in equal monthly installments, working capital loans often require daily or weekly payments.

Types of Working Capital Loans

There are many different types of working capital loans, such as short term working capital loans, government-insured loans and lines of credit. If you’re looking for funds to improve and maintain your operating capital, you need to decide which option best aligns with your particular needs. 

To do so, it’s important to understand that the foundation of each unsecured working capital loan stems from a different loan type.

Short Term Loans

Short term working capital loans give you the ability to run your business without missing a beat. These loans offer business owners the chance to borrow only what is needed over a specific period of time, eliminating the need to manage debt long after your use of the funds has ended.

Short term business loans provide working capital for companies navigating obstacles, like sudden cash flow emergencies, and enable you to embrace exciting revenue opportunities. 

This type of working capital loan usually ranges from 3 to 18 months and is repaid in daily or weekly increments.

SBA Loans

SBA loans are partially guaranteed by the Small Business Administration (SBA) and provide access to working capital for business owners who may not meet traditional bank requirements. 

SBA-insured loans decrease the risk for lenders, helping them offer some of the best working capital loan rates they can to more borrowers.

Regardless of their size, many businesses can qualify. SBA working capital loans are a preferred option for those who can obtain them.

Line of Credit

A business line of credit (LOC) is a perfect solution for businesses with revolving working capital needs.  

A line of credit functions similarly to a credit card, allowing you to withdraw only what you need up to the credit limit. You’ll pay interest on the amount you borrow. 

In short, it’s the perfect type of working capital loan for you if your funding needs are fluid.

Merchant Cash Advances

Merchant cash advances (MCAs) can provide working capital to businesses that want funding fast and don’t want to jump over hurdles to get it.

While not loans, merchant cash advances are upfront sums of capital advanced to borrowers against their business’s future sales. These are short term financing programs and are repaid through smaller daily or weekly payments until the balance of the advance, along with any fees, are paid in full.

Out of all of the types of working capital financing products available, merchant cash advances offer the most flexible qualifications. Once you’re approved, funds can be placed in your account as soon as the same day.

If you’re looking for fast working capital loans for bad credit, MCAs are a great alternative.

Accounts Receivable Financing

If your business is used to waiting on unpaid invoices, or typically experiences a long payment cycle, accounts receivable financing offers a solution.

Accounts receivable financing, also known as invoice financing, is an alternative to fast working capital loans. With this type of funding, you get instant access to cash that’s tied up in your accounts receivables.

By offering the full value of your future invoice payments as collateral, lenders provide you with up to 80% of the total invoice. This means you can continue to manage the costs of your business.

How to Get a Working Capital Loan or Financing for Your Small Business

Getting a working capital loan is easier and faster than obtaining a traditional term loan.

While each lender has its own working capital loan requirements, the qualifications are dependent on the loan or financing type.

Do You Qualify?
Based on previously approved borrowers, you’re likely to qualify if:

  • You’ve been in business for 6 months or more
  • Your annual revenue is $200k or more
  • You have a credit score of 550 or better

Getting a Working Capital Loan with Bad Credit

It’s possible to get a working capital loan if you have bad credit. However, this means you’ll pay more in fees and interest than business owners with better credit scores.

If you’re looking to get a working capital loan with bad credit, Fast Capital 360 can help. We work with some of the best working capital companies to offer you a wide variety of financing products that can meet your needs.

How to Apply for Financing

How to Apply for Working Capital Loans

With the emergence of online lending marketplaces like Fast Capital 360, it’s never been easier to apply for working capital loans and financing.

With one application, you can be matched to the industry’s best working capital lenders and be approved for fast working capital financing in hours.

How a Working Capital Loan Can Be Used

Finding the best working capital loans can be essential to companies that don’t have stable or predictable monthly revenue. Experiencing gaps in your cash flow or operating with insufficient capital can make it difficult to move forward.

Let’s take a look at some of the ways your business can use a working capital loan:

Emergency Expenses

Emergency expenses arise in business, as they do in life, and moments of crisis can call for fast working capital loans when you least expect it. In these situations, securing working capital for your small business can mean the difference between scraping by or finding peace of mind.

Picture this — a vital piece of equipment breaks down and you’re forced to buy a brand-new replacement. You have two options: you can pull funds from your business’s cash flow or savings, or you can apply for a small business working capital loan. 

By using a working capital loan to make large purchases more manageable, you’ll avoid dipping into the money you have set aside for other expenses.

Growth Opportunities

If your business comes across an opportunity for growth, it could require more capital than you have available. With a working capital loan, you can cover daily expenses and take advantage of moments like these without skipping a beat.

For instance, you may have a large purchase order from a new client that could lead to significant growth for your company. The challenge you have, however, is that you don’t have enough inventory to fulfill the order. 

With a working capital loan for small business, you can fund the upfront costs of purchasing the inventory you need and pay it off quickly, once you’ve received payment from your client.

Seasonal Peaks and Lows

Seasonal businesses can really benefit from working capital loans for small businesses. Despite the fact that busy seasons bring in a lot of revenue (like the holidays for retail stores), businesses need a significant amount of capital to maintain inventory and prepare for peak months.

Conversely, some companies endure slow seasons (like a landscaping business during winter) and need help covering expenses like payroll. 

Whether you’re preparing for a yearly rush or dealing with a slow season, you can find and be approved for the best working capital loan or financing product.


See how one business owner is growing through working capital financing. Terraine, Inc. Success Story