Working capital loans that keep your business moving
A lump sum of financing to cover the everyday costs of running your business — payroll, inventory, rent, and the gaps in between. Funded in as little as 24 hours, so you can act the moment timing gets tight.
A decision in minutes — no hard credit pull to see your options.
- Term
- 12 months
- Common uses
- Payroll · Inventory · Rent
- Funded
- Today
What is a working capital loan?
See how a working capital loan covers your everyday operating costs — payroll, rent, inventory — during the stretch when the bills come due before your revenue arrives.
It bridges the gap: cash now for the costs of running your business, repaid on a fixed schedule as revenue lands.
Get one lump sum
The full amount is deposited to your business account, often as soon as the same or next business day.
Cover operating costs
Put it straight toward payroll, rent, and inventory — whatever keeps the doors open while revenue catches up.
Repay as revenue lands
Pay it back in fixed, equal installments over a short, set term as your customer payments arrive.
A working capital loan is short-term financing that gives your business a lump sum of cash to cover its everyday operating costs — the payroll, rent, inventory, and other bills that keep things running day to day. Rather than funding a major long-term investment, it’s designed to smooth out the timing gap between money going out and money coming in.
“Working capital” is simply the cash your business has on hand to cover its short-term bills. When money comes in unevenly — a slow season, a big order to fund, a customer who takes 60 days to pay — that cushion can run thin. A working capital loan tops it back up so operations never skip a beat, then is repaid over a fixed, short term as revenue returns.
How does a working capital loan work?
Getting and using a working capital loan follows a short, predictable path: you qualify on your business’s revenue and cash flow, receive the full amount as a single lump sum, put it toward your everyday operating costs, and repay it on a fixed schedule as your revenue comes in.
Qualifying on cash flow, not collateral
Approval rests mostly on your business’s revenue and recent bank-statement history rather than hard assets. Many working capital loans are unsecured, though a lender may still ask for a personal guarantee or a general lien on business assets. Because there’s less to appraise than with a traditional bank loan, decisions often come in hours and funding within a day.
One lump sum, deposited fast
Once you accept an offer, the full amount is deposited straight into your business checking account — commonly the same or next business day. From there it’s yours to put toward any operating cost, from payroll to inventory to rent, so you can cover what’s due now instead of waiting on revenue that’s still weeks out.
A fixed repayment schedule
You repay over a set term — commonly 3 to 24 months — in regular, equal installments. Depending on the lender and the product, payments are drafted automatically on a daily, weekly, or monthly cycle, and the total amount you’ll repay is set at the outset. That makes your payments predictable from day one. Exactly how that total is calculated — and why the length of your term matters so much — is covered in Rates & fees below.
What does a working capital loan really cost?
Every example below starts from the same offer — so the total you repay never changes. What changes is the term you repay it over, and that’s what moves your real cost, the working capital loan rate you’re effectively paying.
Same $65,000 repaid. Same $15,000 cost. The only thing that changes is the term — and with a factor rate, that cost is largely set the day you sign, not as you repay. A shorter term doesn’t lower your cost; it raises your approximate APR.
APRs are approximate, and are solved against the monthly payment schedule shown rather than by dividing the total cost by the term — a shortcut that understates the real figure by roughly half. A daily or weekly draft raises it further. Put any offer you receive through the factor rate calculator.
How factor-rate pricing works
Many working capital loans — though not all — are priced with a factor rate instead of an interest rate. A factor rate isn’t interest; it’s a multiplier applied to the amount you borrow. A 1.30 factor means you repay $1.30 for every $1 borrowed, so a $50,000 loan becomes $65,000. That cost is set at the start and doesn’t grow or shrink as you pay it down — the key difference from an interest-based loan, where interest is charged on your shrinking balance, so paying early reduces what you owe. The first question to ask any lender is simply: is this an interest rate or a factor rate?
Why term length is the hidden price
Most owners assume paying a loan off early always saves money. With many factor-rate working capital loans, the borrowing cost is largely determined when you sign — not as you repay. That flips the usual math: a shorter term doesn’t lower your cost, it raises your approximate APR, because you’re paying the same fixed amount over less time. It’s why a factor that “sounds small” can be one of the more expensive ways to borrow.
Other costs to check
Beyond the rate or factor, watch for a one-time origination fee (commonly 1%–5% of the amount), and read the prepayment terms closely — on an interest-based loan, paying early should save you money; on a factor-rate loan it often won’t, unless the lender offers an early-payoff discount. Payment frequency matters too: daily or weekly drafts pull cash out faster than a monthly schedule, so factor that into your cash flow before you sign.
Compare every offer the same way
Whoever you borrow from, insist on two numbers in writing — the total dollars you’ll repay and the APR — and compare every offer on those, never on the factor rate or the monthly payment alone. That single habit is the best protection a borrower has. It’s also how Fundur presents every working capital loan offer: total repayment cost and APR, side by side, so the comparison is honest from the start.
Rates, factor rates, and fees vary by lender and business; figures shown are illustrative, and your actual working capital loan terms are disclosed in full before you accept.
What can you use a working capital loan for?
Put a lump sum to work on the everyday operating costs that keep your business running — whatever comes due before your revenue arrives.
Because the funds arrive as a single lump sum, a working capital loan can cover almost any short-term operating cost — protecting your cash flow whenever the timing of money out and money in doesn’t line up. Owners most often put it toward:
- Payroll — keep every pay run on time, even when customer payments run late.
- Inventory — stock up before peak season or lock in a bulk discount, then repay as it sells.
- Supplier & vendor payments — pay on terms and keep your accounts in good standing.
- Slow-paying invoices — access working capital now while clients take 30–90 days to settle.
- A large order or new contract — fund the upfront materials and labor to deliver before you’re paid.
- Rent, utilities & overhead — stay current on recurring costs through a lean stretch.
- Near-term marketing — fund a promotion tied to revenue you expect soon, and repay from what it drives.
- Urgent repairs — cover an unexpected breakdown without draining your reserves.
…and almost any other short-term operating expense.
One rule of thumb: a working capital loan is best matched to costs you’ll repay soon from incoming revenue. For long-term investments — buying property, or major equipment with years of useful life — a longer-term loan usually costs far less, because you can spread the expense over the years the asset actually earns.
How does a working capital loan compare?
See how a working capital loan stacks up against a business line of credit, a business term loan, and a merchant cash advance — and when another option is the better fit for short-term business expenses.
| Working Capital LoanThis product | Business Line of Credit | Business Term Loan | Merchant Cash Advance | |
|---|---|---|---|---|
| How you get funds | One lump sum, upfront | Draw as needed, up to a limit | One lump sum, upfront | One lump-sum advance, upfront |
| Best for | Short-term operating costs due before revenue arrives | Ongoing or unpredictable needs | Large, one-time investments | Fast cash for businesses with steady card sales |
| Repayment | Fixed, equal installments over a short term | Flexible — based on what you draw | Fixed monthly payments over years | A set share of your daily card sales |
| Reusable | No — one loan at a time | Yes — revolves as you repay | No — reapply for more | No — take a new advance |
| Typical speed | Often as fast as 24 hours | Same day to a few days | Several days to weeks | Often same or next day |
| Cost basis | Interest or factor rate; total often set at signing | Interest only on what you draw | Interest on the balance over the term | Factor rate on sales — often among the highest |
There’s no single “best” option — each solves a different problem. A working capital loan shines when you need money quickly for short-term operating costs you’ll repay soon from revenue. A line of credit fits ongoing, unpredictable needs; a term loan suits large, long-term investments; and a merchant cash advance trades higher cost for repayment that flexes with your sales. Many businesses use more than one, depending on the job. What these options share is a repayment window measured in months rather than years — so if what you are weighing is the term itself rather than the product, short-term business loans sets the structures side by side by term length and payment frequency.
Working capital loan or working capital line of credit?
Both fund the same thing — the gap between money going out and money coming in. They differ in when you take the money, and that single difference decides which one is cheaper for your situation.
A working capital loan
The full amount lands at once and repayment starts immediately on the whole balance, typically on a daily or weekly schedule over three to twenty-four months.
Cheaper when you know the amount and need it now — an inventory buy, a tax bill, a specific shortfall with a date on it. You pay for every dollar from day one, so idle funds are wasted cost.
A working capital line of credit
A limit you draw against, repay and draw again. You are charged only on the balance outstanding, so an undrawn line accrues no interest.
Cheaper when the timing is uncertain or the need recurs — seasonal swings, payroll cover between receivables. The trade-off is that the limit is re-underwritten at renewal and can be reduced.
The practical test: if you can name the amount and the date, a loan is usually the cheaper instrument. If you cannot — and what you actually need is availability — a line is, even though its headline rate is typically higher. Across SBA 7(a) approvals the median revolving line carried a 10.00% initial rate against 8.50% on non-revolving term debt, because lines are the less-secured product. That premium is the price of not having to decide in advance. See how a business line of credit works, including who offers them and what changes at renewal.
Working capital lenders are not one group either — banks, non-bank lenders and marketplaces each build the facility differently and set different revenue and time-in-business floors. The four provider categories, and what each is strongest and weakest on, are set out on our business line of credit page; the same categories fund working capital loans.
When does a working capital loan make sense?
The same loan can be a smart move or an expensive mistake, depending on why you’re borrowing. Here’s how to tell whether a working capital loan is the right fit for your business — and when another option will serve you better.
A strong fit when…
- The need is short-term. You’re covering a temporary gap you’ll repay soon from incoming revenue.
- Payroll is due before receivables arrive. You need to make payroll or pay suppliers while customers still owe you. See payroll financing.
- Inventory or a big order is tied to near-term sales. You’re stocking up or fulfilling an order you’ll be paid for shortly. See inventory financing.
- A slow season needs bridging. Fixed costs like rent and payroll continue while revenue is temporarily down.
- Speed matters and your cash flow can absorb the payments. You need funds in days, and the schedule fits comfortably.
Consider another option when…
- You’re buying a long-lived asset. For equipment or vehicles with years of useful life, equipment financing usually costs less.
- It’s real estate or a multi-year expansion. A longer-term or SBA loan spreads the cost over the years the investment earns.
- The shortfall keeps returning. A recurring gap needs a real fix — a short-term loan can delay that problem rather than solve it.
- Your cash flow can’t absorb frequent payments. Daily or weekly drafts can strain an already-tight schedule.
Do you qualify for a working capital loan?
Every lender sets its own standards, but most weigh the same core signals. Here’s what lenders typically look for in a working capital loan application — and checking your options never affects your credit.
Typical signals only — exact thresholds vary by lender and borrower.
Approval is based on your overall business profile, not any single number. Requirements vary by lender, but most weigh the same core signals to decide whether you qualify for a working capital loan and how much to offer. Because approval leans on revenue and cash flow, online lenders like those on Fundur are often more accessible than a traditional bank — and many businesses qualify with less-than-perfect credit.
- Monthly revenue. Most lenders want to see consistent deposits — often around $10,000+ per month in your business bank account.
- Consistency of cash flow. Steady, recurring deposits can matter as much as the total, since they show you can support a regular repayment schedule.
- Time in business. Six months of operating history is a common minimum; a longer track record generally widens your options.
- Credit profile. Many working capital loans are available with fair credit; stronger business and personal credit may unlock better pricing, but revenue often carries more weight.
- Existing debt and amount requested. Lenders weigh what you already owe and how much you’re asking for relative to revenue, to keep the payment manageable.
- Recent bank activity. A few months of recent statements reveal real cash flow — frequent overdrafts or negative balances may weigh against an application.
What documents do you need?
To apply, you’ll usually need basic business details and three to six months of recent business bank statements to verify revenue. Larger requests may call for business tax returns or a simple profit-and-loss statement. A valid government-issued ID and a voided business check are typically required at the time of funding. For the fuller picture of what lenders weigh across products, see what lenders actually look at.
Can you qualify with fair or bad credit?
Often, yes. Because many working capital lenders weigh revenue and cash flow heavily, businesses with fair or rebuilding credit can still qualify — especially with consistent deposits. A lower score may mean a higher rate or a smaller amount, and steady on-time payments strengthen your profile for better terms later. Because lenders weigh these factors differently, a decline from one doesn’t mean another will reach the same decision. For a fuller picture of which structures stay reachable at lower scores, see business loans for bad credit.
How to get a working capital loan
Applying for a working capital loan through an online marketplace like Fundur is fast and straightforward — most of the process happens in minutes, and many businesses are funded as soon as the same or next business day. Here’s what to expect.
1. Complete a short application
Provide basic details about your business — time in business, monthly revenue, industry, and the amount you’re requesting — and connect or upload a few months of recent bank statements. Checking your options uses a soft credit pull, so it won’t affect your credit score.
2. Review your offers with an advisor
If you’re approved, you’ll see the options you qualify for laid out clearly — amount, term, total repayment cost, and APR. A dedicated funding advisor walks you through the details and helps you compare, so you understand exactly what you’re agreeing to before you commit — no fine print, and no obligation to accept.
3. Get funded
Once you choose the offer that fits your business, the full amount is deposited as a single lump sum straight into your business bank account — often as soon as the same or next business day. From there, you put the capital to work and repay on the fixed schedule you agreed to.
To move quickly, have your recent bank statements ready and your business details accurate and consistent — matching business name, address, and revenue figures across your application and statements. Complete, organized information is the single best way to speed up approval and funding. Actual timing varies by lender, documentation, and approval.
Working capital loan FAQs
What is a working capital loan?
A working capital loan is short-term financing that gives your business a lump sum of cash to cover everyday operating costs — payroll, rent, inventory, and similar bills — during the stretch when expenses come due before your revenue arrives. It’s repaid over a fixed, short term rather than funding a long-term investment like property or major equipment.
How does a working capital loan work?
You typically qualify based on your revenue and cash flow, receive the full amount as a single lump sum deposited to your business bank account, and repay it in regular installments over a set term. Approval and funding are often fast because there’s less to appraise than a traditional bank loan, though timing varies by lender and documentation.
How much can I borrow with a working capital loan?
Amounts vary widely by lender and are usually sized to your business’s revenue and cash flow — often a portion of your monthly or annual deposits. Stronger, steadier revenue generally supports a larger amount, but the exact figure depends on the lender and your specific profile.
What credit score do I need to qualify?
There’s no universal cutoff. Because many working capital lenders weigh revenue and cash flow heavily, some work with fair credit, while stronger credit may unlock better pricing and larger amounts. Requirements depend on the lender and borrower, so it’s worth comparing more than one option.
Can I qualify with fair or bad credit?
Often, yes. Businesses with fair or rebuilding credit can still qualify, especially with consistent deposits and steady cash flow. A lower score may mean a higher rate or a smaller amount, and steady on-time payments strengthen your profile for better terms down the road.
Will applying affect my credit score?
Checking your options through a marketplace like Fundur typically uses a soft credit pull, which doesn’t affect your score. A lender may run a hard inquiry later if you move forward with a specific offer — review the offer terms so you know what to expect before you commit.
How fast can I get funded?
Many businesses receive a decision quickly and funding as soon as the same or next business day. Actual speed depends on the lender, how quickly you provide documents, and approval — complete, consistent bank statements and business details are the best way to move faster, and bank statements are usually all a light-file application needs. See what actually decides funding speed, stage by stage.
What do working capital loans cost?
Cost depends on the lender and your profile, and is quoted as either an interest rate or a factor rate, sometimes with a one-time origination fee. With a factor rate, the total you’ll repay is largely set when you sign. Whichever you’re offered, compare on two numbers: the total dollars you’ll repay and the APR.
How are working capital loans repaid?
You repay in regular, equal installments over a set term — commonly a few months to a couple of years — often drafted automatically on a daily, weekly, or monthly schedule. The total is usually fixed at the outset, so payments are predictable. Repayment structures vary by lender, so review the specific offer. If you would rather repayment move with your sales instead of a fixed schedule, see revenue-based financing.
Is a working capital loan secured or unsecured?
Many working capital loans are unsecured, meaning no specific collateral is pledged, though a lender may still require a personal guarantee or a general lien on business assets. Whether collateral is required depends on the lender, the amount, and your business profile.
What’s the difference between a working capital loan and a line of credit?
A working capital loan gives you one lump sum that you repay on a fixed schedule. A business line of credit is revolving — you draw what you need up to a limit, repay, and draw again, paying interest only on what you use. A working capital loan suits a defined short-term need; a line of credit suits ongoing or unpredictable ones.
Can I repay a working capital loan early?
Sometimes, but it depends on how the loan is priced. On an interest-based loan, paying early usually reduces the interest you owe. On many factor-rate loans the cost is largely fixed at signing, so early payoff may not save money unless the lender offers an early-payoff discount — always check the prepayment terms before you sign.
Get working capital for your business today
See your working capital loan options in minutes — a soft credit check to get started, and no obligation to accept an offer.
A dedicated funding advisor can walk you through any option you receive. Final terms depend on lender approval.