Working Capital Loans
What to know about working capital loans, how to apply, and secure up to $500,0001 in funding for your business.
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PRODUCT FEATURES
A customized financing solution
Your small business needs are unique. We’ll match you with the right loan option to solve for them.
Fast funding
Get your cash in 24 hours.1
Flexible terms
Make hassle-free payments.
Personalized options
Find solutions fit to your needs.
Multiple use cases
Use for almost any business purpose.
Working Capital Loans: What You Need to Know
Key takeaways:
- Working capital loans serve a variety of purposes for a business. Understanding the pros and cons of a working capital business loan can help you decide if one is right for your business needs.
- Working capital loans are used to fund immediate business expenses from operational costs to jumping on an investment or growth opportunity.
- On this page, you’ll learn about why working capital loans are an efficient boost of capital for your business, what you can use the funds for, how to determine your working capital ratio, and how to qualify.
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Frequently asked questions
You may hear working capital referred to as gross, net, permanent, or regular. All have slightly different meanings we’ll outline here:
Gross working capital is the total amount of current assets in the business.
Net working capital commonly refers the current assets minus the current liabilities of a business.
Permanent working capital refers to capital that is permanently tied up in current assets, meaning it is the least amount of current assets needed to support the business.
Regular working capital is the least amount of capital required by a business to fund its daily operations, including salaries and overheard expenses.
Qualifying for a business loan with one of our partners is much easier than a traditional bank. While all lenders vary, it is recommended to have fair to excellent credit to get approved. However, there are loans available for businesses with poor credit.
Businesses who meet the qualifications can get a working capital loan whenever the need arises. Most lenders require a business to be in operation for at least six months to qualify.
A working capital loan is designed to help a business meet its current expenses or make immediate purchases, whereas a term loan is a general loan that can be applied for various costs, including long-term planning or projects.
Most lenders require a business to be in operation for at least six months in order to qualify for a loan.
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