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Best Working Capital Loans for Small Businesses 2019

Jackie ZimmermannDecember 6, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Online lenders offer working capital loans to finance everyday needs, large purchases and unpaid customer invoices.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

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on Fundera's website

Our picks for

Working capital for everyday needs

Kabbage, StreetShares and OnDeck offer working capital loans and lines of credit up to $250,000.

Kabbage - Line of credit

Kabbage - Line of credit

Est. APR

24.00 - 99.00%

Min. Credit Score

560

Kabbage provides fast loans for business owners with bad personal credit, but rates can be high.

Pros

  • Financing up to $250,000 available within a few days.
  • Accepts low credit scores.

Cons

  • Rates are high compared to other online lenders.
  • Must have online checking or PayPal account to verify cash flow.
  • Fixed-fee structure means early repayment does not save interest.
Read full review

Qualifications

  • Minimum credit score: 560.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $50,000.
StreetShares

StreetShares - Line of credit

Est. APR

8.00 - 39.90%

Min. Credit Score

600

StreetShares offers a business line of credit for newer businesses that need to manage cash flow or buy inventory.

Pros

  • Competitive rates among online lenders.
  • No prepayment penalty.

Cons

  • Requires weekly repayments.
  • Financing amounts limited to 20% of annual revenue.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $75,000.
  • No bankruptcies in the past 3 years.
  • Unavailable to borrowers in North Dakota, South Dakota, Rhode Island, Montana, and Nevada. Unavailable to sole proprietorships in Delaware, Minnesota, Nebraska, New Jersey, or New York.
StreetShares - Online term loan

StreetShares - Online term loan

Est. APR

8.00 - 39.99%

Min. Credit Score

600

StreetShares offers a business term loan for newer businesses that need to finance an expansion.

Pros

  • No prepayment penalty.

Cons

  • Requires weekly repayments.
  • Financing amounts limited to 20% of annual revenue.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $25,000.
  • No bankruptcies in the past 3 years.
OnDeck - Online term loan

OnDeck - Online term loan

Est. APR

9.00 - 99.00%

Min. Credit Score

600

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.

Pros

  • Cash can be available within the same business day.
  • Requires low minimum credit score.
  • Less paperwork than most lenders.

Cons

  • Fixed-fee structure means early repayment will not save interest.
  • Requires frequent (daily or weekly) repayments.
  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $100,000.
  • No bankruptcies in the past 2 years.

Our picks for

Working capital for large purchases

If you need a large sum to cover an equipment purchase or minor expansion project, focus your search on lenders that offer the lowest APRs and longer repayment terms.

SmartBiz - SBA loan

SmartBiz - SBA loan

Est. APR

9.28 - 10.52%

Min. Credit Score

650

SmartBiz’s low-cost SBA loans work best for established businesses that want to finance an expansion or refinance debt.

Pros

  • Competitive rates among online lenders.
  • Faster than getting an SBA loan from a bank.

Cons

  • Must have strong financials, supported by personal and business tax returns for the past 3 years.
  • Stringent rules on use of proceeds.
  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 650.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $50,000.
  • No bankruptcies or foreclosures in the past 3 years.
Currency - Equipment financing

Currency - Equipment financing

Est. APR

6.00 - 24.00%

Min. Credit Score

585

Currency is an option for business owners looking to finance the purchase of new equipment.

Pros

  • Competitive rates among online lenders.

Cons

  • Prepayment penalty in some cases.
  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 585.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $75,000.
  • Must have a net loss no greater than 10% over the past 12 months.
Credibility Capital - Online term loan

Credibility Capital - Online term loan

Est. APR

10.00 - 25.00%

Min. Credit Score

680

Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.

Pros

  • Competitive rates among online lenders.
  • No prepayment penalty.
  • Extra monthly payments can save interest cost.

Cons

  • Short repayment term results in higher payment amounts.
  • Requires high minimum credit score and revenue.
  • Requires business lien and may require personal guarantee.
  • Not available in Nevada, North Dakota, South Dakota, or Vermont.
Read full review

Qualifications

  • Minimum credit score: 680.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $250,000.
  • No bankruptcies in the past 5 years.

Our pick for

Working capital for unpaid customer invoices

Companies that work in the business-to-business sector will face gaps in cash flow. To help keep your business running while the check’s in the mail, consider invoice factoring or invoice financing.

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Est. APR

15.00 - 68.00%

Min. Credit Score

530

BlueVine’s invoice factoring works best for financing larger invoices, but only if your customers reliably pay on time.

Pros

  • Finances larger invoices.
  • Cash can be available within the same day.
  • Accepts low minimum credit score and short time in business.

Cons

  • Not for businesses that do not invoice on net terms.
  • Loan amount is tied to the value of your invoices.
  • Dependency on customers to pay their bills on time.
Read full review

Qualifications

  • Minimum credit score: 530.
  • Minimum time in business: 3 months.
  • Minimum annual revenue: $100,000.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

Get Started

on Fundera's website

Summary of Best Working Capital Loans for Small Businesses 2019

LenderBest ForEst. APRMin. Credit Score
Kabbage - Line of credit

Kabbage - Line of credit

Working capital for everyday needs

24.00 - 99.00%

560

StreetShares

StreetShares - Line of credit

Working capital for everyday needs

8.00 - 39.90%

600

StreetShares - Online term loan

StreetShares - Online term loan

Working capital for everyday needs

8.00 - 39.99%

600

OnDeck - Online term loan

OnDeck - Online term loan

Working capital for everyday needs

9.00 - 99.00%

600

SmartBiz - SBA loan

SmartBiz - SBA loan

Working capital for large purchases

9.28 - 10.52%

650

Currency - Equipment financing

Currency - Equipment financing

Working capital for large purchases

6.00 - 24.00%

585

Credibility Capital - Online term loan

Credibility Capital - Online term loan

Working capital for large purchases

10.00 - 25.00%

680

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Working capital for unpaid customer invoices

15.00 - 68.00%

530

LenderBest ForEst. APRMin. Credit Score
Kabbage - Line of credit

Kabbage - Line of credit

Working capital for everyday needs

24.00 - 99.00%

560

StreetShares

StreetShares - Line of credit

Working capital for everyday needs

8.00 - 39.90%

600

StreetShares - Online term loan

StreetShares - Online term loan

Working capital for everyday needs

8.00 - 39.99%

600

OnDeck - Online term loan

OnDeck - Online term loan

Working capital for everyday needs

9.00 - 99.00%

600

SmartBiz - SBA loan

SmartBiz - SBA loan

Working capital for large purchases

9.28 - 10.52%

650

Currency - Equipment financing

Currency - Equipment financing

Working capital for large purchases

6.00 - 24.00%

585

Credibility Capital - Online term loan

Credibility Capital - Online term loan

Working capital for large purchases

10.00 - 25.00%

680

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Working capital for unpaid customer invoices

15.00 - 68.00%

530

Compare small-business loans

When looking for a working capital loan, it’s important to compare all of your options based on APR, which represents the true cost of the loan, including all fees. To evaluate other loans, you can go to NerdWallet’s small-business loan tool. NerdWallet’s list of lenders is based on factors including market scope, customer experience and lender trustworthiness.

Last updated on December 6, 2019

To recap our selections...

NerdWallet's Best Working Capital Loans for Small Businesses 2019