How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 7 working capital loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA working capital loans | $5,000,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Working capital loans for established businesses | $500,000 | 660 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Fast working capital loans | $250,000 | 625 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 4.0/5 Best for Working capital loans for startups | $250,000 | 570 | Read Review |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Working capital loans for bad credit | $1,500,000 | 500 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Unsecured working capital loans | $150,000 | 600 | Read Review |
PayPal Business Loan | Best for PayPal Premier or Business account holders | $250,000 | 580 | |
Here are 7 working capital loans
Best for SBA working capital loans
Best for Working capital loans for established businesses
Best for Fast working capital loans
Best for Working capital loans for startups
Best for Working capital loans for bad credit
Best for Unsecured working capital loans
Best for PayPal Premier or Business account holders
Max Amount
$250,000
Min. Credit Score
580
I'M INTERESTED IN:
Our pick for
SBA working capital loans
The SBA 7(a) loan program includes term loans as well as line of credit options that you can use for working capital, seasonal expenses or costs to cover supplies and labor while completing a contracted project.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Working capital loans for established businesses
Funding Circle’s loans can fund within a matter of days, but you’ll need at least two years in business to qualify.
Funding Circle - Online term loan
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
Our pick for
Fast working capital loans
OnDeck’s same-day business loans are available to business owners with credit scores of 625 or more.
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
35.40-99.90%
Our pick for
Working capital loans for startups
You may be able to qualify for a working capital loan from Accion with three months or more in business.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
7.49-29.67%
Our pick for
Working capital loans for bad credit
Fora Financial offers working capital loans to borrowers who have a personal credit score of 500 or higher.
Fora Financial - Online term loan
Max loan
$1,500,000
Min. Credit score
500
Our pick for
Unsecured working capital loans
Fundbox offers working capital lines of credit up to $150,000. You do not need to put up physical collateral, but the lender does require a UCC lien, and in some cases, a personal guarantee.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
PayPal Premier or Business account holders
PayPal Working Capital loans are available to holders of PayPal Premier or Business accounts. Loan amounts range from $1,000 to $250,000 and are available if you’ve been an account holder for at least 90 days and have processed at least $15,000 ($20,000 for Premier) within the last 12 months. You will not be approved if you have a current outstanding PayPal Working Capital loan.
PayPal Business Loan
Max loan
$250,000
Min. Credit score
580
What is working capital?
What is a working capital loan?
Types of business working capital loans
Business lines of credit
SBA loans
Term loans
Invoice factoring
Merchant cash advances
Pros and cons of working capital loans
Pros
- Suitable for cash flow gaps and seasonal slows. Working capital loans can easily provide your business with the funds needed to address slower periods, whether your business operates seasonally or is experiencing a one-off sales dip.
- Flexible funds. You can use a business working capital loan for a variety of purposes, such as purchasing inventory or supplies, making payroll and covering utilities.
- Accessible to a wide variety of businesses. Although some working capital loans require that you meet strong eligibility criteria, others — like online business loans or loans from other alternative lenders — can be more flexible.
- Can fund quickly. Some online lenders can provide same-day financing, whereas others may take a few business days. More traditional lenders, however, will have a longer funding timeline.
Cons
- Frequent payments. Working capital loans typically have short repayment terms — and some lenders may require daily or weekly payments.
- May be expensive. Some types of business working capital loans can carry high annual percentage rates (APRs) and other fees.
- Different ways of charging interest. Certain lenders may charge interest as a factor rate — which can make it difficult to understand the cost of your financing — as well as compare it to other lenders. You should always try to translate the interest a lender charges into an APR to get a better sense of loan costs.
How to get a working capital loan
Find the right business loan
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.