What can a working capital loan be used for?

Any ordinary operating expense: payroll, rent, inventory, supplier payments, marketing, repairs or taxes. Providers generally do not restrict the purpose, though they will ask what the funds are for during the request.

How fast can working capital be funded?

Decisions are commonly returned within one business day of the provider receiving your bank statements, and funding often follows within one to three business days. Same-day funding exists on some products but is never guaranteed.

Can I get working capital with bad credit?

Options exist from roughly a 550 personal score when revenue is steady, because these files are underwritten primarily on bank-statement cash flow. Expect a higher cost, a shorter term and a smaller amount than a stronger profile would receive.

Is a working capital loan the same as a merchant cash advance?

No. A term loan repays principal and interest on a fixed schedule. A merchant cash advance purchases a share of future receipts at a factor rate and is repaid from card sales or bank deposits, which usually makes it more expensive.

Funding solution

Working Capital Loans for US Businesses

A working capital loan is a short- to medium-term business loan, typically $10K–$500K, used to fund day-to-day operations rather than a long-term asset. Funds arrive as a lump sum and are repaid on a fixed schedule. BusinessLending360 matches your request with options from 1,700+ funding sources.

Typical range: $10,000 – $500,000

How working capital loans works

A working capital loan funds the operating side of the business: payroll, rent, inventory, marketing, repairs and the gap between paying suppliers and collecting from customers. It is not intended for long-lived assets, which are usually financed with equipment finance or an SBA-backed loan.

Approval leans heavily on recent cash flow. Providers review three to twelve months of business bank statements to see deposit volume, deposit consistency, average daily balance and how often the account is overdrawn. That is why a profitable business with irregular deposits can be priced higher than a thinner business with steady ones.

Funds are advanced as a single lump sum and repaid on a fixed schedule — monthly for longer terms, weekly or daily for short-term products. Terms typically run from three to sixty months, with the shortest terms carrying the highest effective cost.

Because the file is driven by bank data rather than an appraisal, decisions are fast. Many providers issue a decision within one business day of receiving statements, and funding often follows within one to three business days.

Rates and costs

Working capital pricing spans a very wide band. Longer amortising term loans from established providers are typically quoted as an annual interest rate, while short-term products may be quoted as a factor rate or a fixed total repayment amount. Always convert a factor rate to an estimated APR before comparing offers.

The main drivers of your price are time in business, average monthly revenue, deposit consistency, industry and personal credit. Origination fees of one to five percent of the funded amount are common and should be included in your cost comparison, because they reduce the amount you actually receive while you still repay the full balance.

BusinessLending360 does not set or advertise rates. Pricing is set by each funding provider and depends on credit profile, revenue, time in business, amount and term. Confirm current pricing directly with the provider.

Amounts and terms

Typical amount: $10,000 – $500,000
Rate basis: Est. APR, or factor rate on short-term products
Term: 3 – 60 months
Repayment: Daily, weekly or monthly fixed payments
Typical funding speed: 1 – 3 business days after approval
Collateral: Often unsecured with a personal guarantee

How to qualify

At least 3 to 6 months in business for most short-term products.
Roughly $10,000+ in average monthly revenue.
A US-registered entity with a business bank account in the company name.
Personal credit from about 550, with better pricing above 650.
Three to six months of business bank statements available.

Pros and cons

Fast decisions — often within one business day of submitting statements.
Usable for any operating need, with no restriction on the purpose.
Frequently unsecured, so no specific asset is pledged.
Approval weighs recent cash flow more heavily than credit score alone.

Short terms concentrate repayment and strain weekly cash flow.
Factor-rate pricing can be far more expensive than it appears.
Origination fees reduce the net amount you actually receive.
A personal guarantee is standard on most unsecured facilities.

Common use cases

Making payroll during a slow collection month
Buying inventory at a supplier discount
Funding a marketing push before a seasonal peak
Covering an unexpected repair or insurance deductible

Alternatives to consider

Related guide: read the full breakdown.

Frequently asked questions

What can a working capital loan be used for?: Any ordinary operating expense: payroll, rent, inventory, supplier payments, marketing, repairs or taxes. Providers generally do not restrict the purpose, though they will ask what the funds are for during the request.
How fast can working capital be funded?: Decisions are commonly returned within one business day of the provider receiving your bank statements, and funding often follows within one to three business days. Same-day funding exists on some products but is never guaranteed.
Can I get working capital with bad credit?: Options exist from roughly a 550 personal score when revenue is steady, because these files are underwritten primarily on bank-statement cash flow. Expect a higher cost, a shorter term and a smaller amount than a stronger profile would receive.
Is a working capital loan the same as a merchant cash advance?: No. A term loan repays principal and interest on a fixed schedule. A merchant cash advance purchases a share of future receipts at a factor rate and is repaid from card sales or bank deposits, which usually makes it more expensive.

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