Working capital loans

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No collateral requirements

Obtain the funds you need without pledging assets to secure your loan.

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Same-day funding

Apply for a working capital loan in minutes and get funded within 24 hours.

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Solution for everyday expenses

Cover operating costs, pay vendors, buy inventory and more. You decide.

Get the most out of a fast working capital loan

Bills don’t stop coming when challenging times or unexpected costs arise.

Working capital loans are designed to get you the funds you need fast to keep your company running. Financing products that fall under business capital loans include term loans, lines of credit and cash advances.

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    Financing amount Up to $500,000
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    Repayment terms 3 months - 5 years
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    Interest rate Starting at 7%
  • Dollar sign in circle
    Funding available Same day

Working capital loans made easy

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Working capital loan requirements

Business capital loans are accessible to many borrowers. Additionally, most working capital loans are easier to get approved with a streamlined application and underwriting process.

What you’ll need to qualify:

  • 6+ months
  • $200K+ annual revenue
  • 550+ credit score

Best working capital loan uses

Gaps in cash flow or insufficient capital for everyday operations can make it difficult to grow. Finding the best working capital loans can be essential to companies that don’t have stable or predictable monthly revenue. Here are some of the ways you can leverage a working capital loan.

Weather seasonal peaks and lows

While busy seasons can bring in a lot of revenue, a significant amount of capital is needed to maintain your inventory and prepare for peak months.
And when your company endures its slow season, you may need help covering expenses like payroll.

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

Cover emergency expenses

Emergency expenses 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 and having peace of mind.

Take advantage of a growth opportunity

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 this opportunity.

Fulfill orders

A large order from a new client 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 once you’ve received payment from your client.


Working capital loan FAQs

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. In other words, this type of financing is not used to acquire long-term fixed assets, including real estate, such as land or buildings.

That said, your business can use a business capital loan for a number of reasons. You can pay your employees and rent during your annual lulls, or you can purchase inventory without depleting cash reserves. Funding a company’s everyday needs is what a working capital loan is all about.

How does a working capital loan work?

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.

What’s 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.

What are the different 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 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 disruption.

Short-term business loans provide working capital for companies navigating obstacles, like sudden cash flow emergencies. They also can 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-backed 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.

Lines of credit

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

A line of credit allows you to withdraw only what you need up to the credit limit. You’ll pay interest only 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.

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 day you apply.

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 can you get a working capital loan or financing for your small business?

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

While each lender has its own working capital loan requirements, the qualifications are dependent on the loan or financing type. Borrowers who meet the following criteria typically qualify.

What you’ll need to qualify:

  • Time in business
    6+ months
  • Annual revenue
    $200k+
  • Credit score
    550+

Interested in 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 can you apply for a working capital loan?

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.

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