Best Working Capital Loans of September 2025
Compare different lender options to find the best working capital loan for your needs. Select your business type to get started.
| Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
|---|---|---|---|---|---|---|---|
 with Fundera by NerdWallet | Read expert review | Best for large loan amounts | $5,000,000 | 24 months | 10.5% | Up to 25 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for bad credit borrowers | $1,500,000 | 6 months | Undisclosed | 4 to 18 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for no credit check | $10,000 | 3 months | Undisclosed | Undisclosed | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for lines of credit | $250,000 | 12 months | 14% | Up to 6 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for flexible repayment options | $100,000 | 6 months | 35% | 12 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for startup businesses | $250,000 | 3 months | 36% | 3 to 6 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for established businesses that need fast financing | $500,000 | 24 months | 15.22% | 6 months to 5 years | with Fundera by NerdWallet |
best working capital loans: More details
U.S. Small Business Administration: Best for large loan amounts
Low interest rate
SBA 7(a) loan
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
with Fundera by NerdWallet
Fora Financial: Best for bad credit borrowers
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 18 months
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
with Fundera by NerdWallet
Giggle Finance: Best for no credit check
Giggle Finance - Merchant cash advance
with Fundera by NerdWallet
Max loan amount
$10,000
Min. credit score
300
Term length
Undisclosed
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
with Fundera by NerdWallet
Bluevine: Best for lines of credit
May fund quickly
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
625
Term length
Up to 6 months
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
with Fundera by NerdWallet
Headway Capital: Best for flexible repayment options
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan amount
$100,000
Min. credit score
625
Term length
12 to 24 months
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
with Fundera by NerdWallet
Fundbox: Best for startup businesses
May fund quickly
Fundbox - Line of credit
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
600
Term length
3 to 6 months
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Pros
- Financing available within two business days after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
with Fundera by NerdWallet
iBusiness Funding: Best for established businesses that need fast financing
May fund quickly
iBusiness Funding - Online term loan
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
660
Term length
6 months to 5 years
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to five years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to five years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
with Fundera by NerdWallet
Table of contents
What is a working capital loan?
A working capital loan is a short-term business loan
Working capital loans are often:
- Quick to fund.
- Have short repayment periods.
- Issued by banks, credit unions or online lenders.
Types of working capital loans
Several types of business loans
Business term loans
Business lines of credit
A working capital line of credit
SBA loans
SBA loans are partially guaranteed by the U.S. Small Business Administration and issued through participating banks, credit unions and online lenders. SBA 7(a) term loans CAPlines of credit
Merchant cash advances (MCAs)
Pros and cons of working capital loans
Pros
- Suitable for cash flow gaps and seasonal slows.
- Flexible funds that can be used for a variety of purposes
- Accessible to a wide variety of businesses.
- Can fund quickly.
Cons
- Some lenders may require daily or weekly payments.
- Can be expensive.
- Lenders may charge interest as a factor rate — which can make it difficult to understand the cost of your financing.
How to get a working capital loan
The general process for getting a working capital loan is similar to other loan types. You can follow these steps:
1. Understand your financing needs. Working capital loans are typically used for short-term business needs. You should start by assessing whether you really need capital now — or if you can wait in order to qualify for a longer-term, more affordable loan. If you decide to seek financing now, determine how much capital you need and how much you can afford.
🧮 Join the 70,000+ small-business owners who get nerdy with our free business loan calculator
2. Evaluate your qualifications . Consider common business loan requirements
3. Research lenders. Do some research to find lenders that suit your specific business needs. You can read online reviews to get a sense of what it’s like to work with a particular lender.
4. Gather business documents. As part of your application, you’ll need to provide financial statements like profit and loss statements, bank statements or tax returns, as well as business and legal documents, like your operating agreement and business plan
5. Submit your application. Once you submit your application, online lenders can review it in as little as a few hours, while banks take longer. SBA loans may have the longest application timelines
» Need more guidance? How to apply for and get a business loan
How to compare working capital loans
When trying to choose the best working capital loan for your needs, you’ll want to compare factors such as:
💲 Maximum funding amount. Make sure you understand how much funding you need before applying. If you need a large business loan
📈 Interest rate. Interest rates can vary depending on the loan type and lender. If a lender charges interest as a factor rate
💰 Additional fees. You’ll want to understand any additional fees a lender may charge, such as origination fees, draw fees (for lines of credit) or prepayment penalties. These types of fees can increase the cost of your financing.
🗓️ Loan term. Some working capital loans may require frequent payments over short repayment terms. Consider your budget and cash flow to determine the type of repayment you can afford.
⏱️ Time to fund. If you need working capital quickly, you may be able to get it from an online lender
🤝 Lender reputation. Reading online reviews or talking to other business owners can help you get a sense of what it may be like to work with a particular lender. Although there are many reputable online lenders, be wary of any company that offers “guaranteed approval” or makes similar promises that seem too good to be true.
Alternatives to working capital loans
If you’re not sure that a working capital loan is right for your needs, you might consider these alternatives:
Business credit cards
Small-business grants
Business grants can offer free capital that doesn't need to be repaid. Small-business grants
Crowdfunding
Similar to business grants, you might consider crowdfunding
Frequently asked questions
Are working capital loans a good idea?
What are the rates on working capital loans?
Is a working capital loan a line of credit?
Last updated on May 29, 2025
How Fundera by NerdWallet works
Getting a business loan can be challenging, and several factors —
cost, speed, repayment schedule — can play a role in deciding which
product is right for you. Let us help you through the process.
Get started
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans editorial guidelines
