Working Capital Loans: Overview and Best Options From Our Partners
Working Capital Loans: Overview and Best Options From Our Partners
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SBA 7(a) loan
Best for large loan amounts
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Best for large loan amounts
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Max loan amount
$1,500,000
Min. credit score
570
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.
Fora Financial - Online term loan
Best for bad credit borrowers
Max loan amount
$1,500,000
Min. credit score
570
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.
Giggle Finance - Merchant cash advance
Best for no credit check
Max loan amount
$10,000
Min. credit score
300
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.
Giggle Finance - Merchant cash advance
Best for no credit check
Max loan amount
$10,000
Min. credit score
300
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.
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%
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.
Bluevine - Line of credit
Best for lines of credit
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%
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.
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%
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.
Headway Capital - Line of credit
Best for flexible repayment options
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%
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.
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Pros
- Financing available within one business day 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).
Fundbox - Line of credit
Best for startup businesses
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Pros
- Financing available within one business day 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).
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven 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.
iBusiness Funding - Online term loan
Best for established businesses that need fast financing
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven 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.
Table of contents
👉 Have bad credit?
Check out NerdWallet's best business loans for bad credit for more financing options.
SBA 7(a) loan
Best for large loan amounts
At a glance:
- Loans up to $5 million.
- Funding in as little as two weeks.
- Usually requires a650+ credit score and24+ months in business.
🔍 Why we like it:
SBA 7(a) loans are an affordable option for businesses that can’t qualify for bank financing, but still have good credit and finances. 7(a) loans offer low interest rates, long repayment terms and large funding amounts.
📋 Key details:
- Loan type: Term loan.
- Interest rate range:10.5% to14%.
- Repayment term: Up to 25 years.
- Speed: As fast as two weeks.
➡️ Good fit for:
Established businesses with good credit that need large amounts of working capital.
Fora Financial
Best for bad credit borrowers
At a glance:
- Loans up to $1.5 million.
- Funding in as little as 24 hours.
- Requires a570+ credit score and6+ months in business.
🔍 Why we like it:
Fora Financial is a fast funding option for borrowers who may fall short of qualifying for traditional bank financing. The lender can work with startups and borrowers with bad credit — as long as they have strong revenue.
📋 Key details:
- Loan type: Term loan.
- Repayment term: Up to18months.
- Speed: As fast as 24 hours.
➡️ Good fit for:
Businesses with bad credit, but strong revenue that need fast access to working capital.
Giggle Finance
Best for no credit check
At a glance:
- Advances up to $10000($20,000 for repeat customers).
- Funding in as little as a few hours.
- Requires3+ months in business and doesn't check your credit score.
🔍 Why we like it:
Giggle Finance offers small amounts of capital to contractors, self-employed individuals and other small-business owners. Giggle is a standout option for borrowers with bad credit — as the company does not check your credit as part of the application process.
📋 Key details:
- Loan type: Merchant cash advance.
- Repayment term: Payments are based on your business’s revenue. You’ll make weekly payments until you repay the full advance amount.
- Speed: As fast as the same day.
➡️ Good fit for:
Businesses with bad credit that can’t qualify for other options.
Bluevine
Best for lines of credit
At a glance:
- Credit lines up to $250000
- Funding in as little as 24 hours.
- Requires a625+ credit score and12+ months in business.
🔍 Why we like it:
Bluevine offers flexible lines of credit that can be used to manage cash flow needs. Its fast funding speed and lenient qualification requirements make it a good option for a variety of businesses.
📋 Key details:
- Loan type: Line of credit.
- Interest rate range:14% to48%.
- Repayment term:6months.
- Speed: As fast as 24 hours.
➡️ Good fit for:
Business owners with fair credit who need quick, repeat access to working capital.
Headway Capital
Best for flexible repayment options
At a glance:
- Credit lines up to $100000.
- Funding in as little as 24 hours.
- Requires a625+ credit score and6+ months in business
🔍 Why we like it:
Headway Capital offers a business line of credit that’s a good choice for those who can’t qualify for traditional financing. It offers three repayment term options — more than other similar competitors.
📋 Key details:
- Loan type: Line of credit.
- Interest rate range:35% to80%.
- Repayment term:12, 18 or24months.
- Speed: As fast as the next business day.
➡️ Good fit for:
Startups or low revenue businesses that want a fast, flexible line of credit.
Fundbox
Best for startup businesses
At a glance:
- Credit lines up to $150000.
- Funding in as little as 24 hours.
- Requires a600+ credit score and3+ months in business.
🔍 Why we like it:
Fundbox is one of the best online line of credit options for startups. It’s also a good option for borrowers with bad credit and businesses with low revenue.
📋 Key details:
- Loan type: Line of credit.
- Interest rate range:36% to99%.
- Repayment term:3or6months.
- Speed: As fast as the next business day.
➡️ Good fit for:
Startups that want fast and flexible access to working capital.
iBusinessFunding
Best for established businesses that need fast financing
At a glance:
- Loan amounts up to $500000
- Funding in as little as 48 hours.
- Requires a660+ credit score and24+ months in business.
🔍 Why we like it:
iBusiness Funding is a good option for qualified business owners who don’t want to wait for bank financing. The lender offers competitive interest rates and long repayment terms, but can fund much more quickly than traditional lenders.
📋 Key details:
- Loan type: Term loan.
- Interest rate range:15.22% to45%.
- Repayment term: Up to84months.
- Speed: As fast as the next business day after approval.
➡️ Good fit for:
Established businesses that want fast working capital and to repay it over a long period of time.
A working capital loan is a short-term business loan used to cover your business’s day-to-day expenses. These loans may help you pay for rent, payroll, utilities, supplies, inventory and accrued expenses like taxes.
Working capital loans are often:
- Quick to fund.
- Have short repayment periods.
- Issued by banks, credit unions or online lenders.
You might need a working capital loan in the following situations:
Business term loans provide a sum of cash upfront that is repaid over a set period of time with fixed, equal payments. In particular, term loans can be useful as business debt consolidation loans, helping reduce your debt load so you can use working capital more efficiently.
Consider a business term loan if: You want flexible financing and have sufficient cash flow to make fixed payments.
A working capital line of credit provides flexibility, as you get access to funds up to a set limit and only pay interest on what you’ve borrowed. You can draw and repay funds as often as you’d like, as long as you make payments and don’t exceed your limit.
Consider a business line of credit if: You need to get through a short-lived slowdown and have strong revenue to pay back your lender before the loan term ends.
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 and lines of credit provide up to $5 million for working capital, expansion or equipment purchases. The long terms and low interest rates of SBA loans make them one of the most affordable types of financing, although they can be slow to fund.
Consider an SBA loan if: You need a lump sum of working capital while undertaking a pivot or expansion.
The CAPLines program, a subset of 7(a) loans, offers SBA lines of credit to businesses that want to use a revolving line of credit as needed while their business ebbs and flows.
The SBA Working Capital Pilot program also offers flexible credit lines with greater flexibility than the CAPLines and a unique fee structure.
Consider an SBA line of credit if: You want a reservoir of money to tap in case of cash flow gaps, emergency expenses or fleeting opportunities.
With invoice factoring, you can turn your unpaid invoices into fast working capital. Factoring involves a company buying your invoices for an upfront payment minus a fee. The factoring company then collects payment directly from your customer. Since this isn’t technically a business loan — you’re selling an asset, not borrowing money — factoring companies don’t give as much weight to your credit score or business history as banks and online lenders do.
Consider invoice factoring if: You’re a B2B company with a significant amount of cash tied up in invoices and not many other financing options to choose from.
Merchant cash advances aren’t technically a loan — instead, they’re a type of financing that you repay with a percentage of your future debit and credit card sales. Because MCA companies can make these withdrawals automatically, they tend to give less weight to other qualification factors like your credit score. Merchant cash advances usually have very high fees, however, making them a funding option of last resort.
Consider an MCA if: You need short-term cash, but don’t have any other funding options at your disposal.
You can get a working capital loan from several different sources, including:
- Banks and credit unions. Traditional lenders are good options for established businesses with collateral and strong credit, and tend to offer the lowest interest rates.
- Online lenders. These lenders may make more sense if you have a poor credit history, though they will typically charge higher APRs than business loans from banks. Invoice financing and merchant cash advances also typically come from online lenders or fintech companies.
- Community development financial institutions (CDFIs). CDFIs can include credit unions and nonbank lenders, which may also offer working capital loans. CDFIs are usually missioned to lend to underserved or marginalized communities, so they may be able to offer lower rates with more relaxed criteria than traditional lenders.
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.
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 to estimate interest costs and payments.
2. Evaluate your qualifications. Consider common business loan requirements like your personal credit score, time in business and annual revenue to determine which working capital loan options are available to you.
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. If you’re approved for financing from an online lender, you could have access to your working capital within a few days. Bank and SBA lenders, on the other hand, may take up to several weeks or even a few months.
» Need more guidance? How to apply for and get a business loan
If you’re not sure that a working capital loan is right for your needs, you might consider these alternatives:
For newer businesses
Business credit cards offer a revolving line of credit that you can spend up to a certain limit, similar to business lines of credit. If you pay your balance every month, you won’t pay any interest. If you don’t pay in full every month, you’ll pay interest on the remaining balance. Business credit cards typically require good personal credit, but not a lot of time in business. They can be a good option to cover short-term gaps in cash flow as long as you are diligent about paying down the balance each cycle.
For those who can’t qualify for traditional financing
Family and friends business loans can be an option when you need capital, but don’t want to go through a formal underwriting process. These loans don’t typically require an application process, credit check or documents submission. Although family and friends loans are usually informal, put the loan terms in writing to avoid any misunderstandings that could affect your personal relationships.
For those looking to avoid debt
If you don’t want to take on debt to obtain working capital, you might consider alternatives such as crowdfunding or small-business grants. Crowdfunding can be a good option for businesses with an established online or social media presence. Business grants can be a good option for a wide variety of small businesses, but applications are competitive.
Yes; some online lenders will accept personal credit scores in the 500s and some merchant cash advance providers, like Giggle Finance, don’t require a credit check. Keep in mind that bad-credit working capital loans will likely have higher interest rates than other options.
Although working capital loans can be a flexible funding option, some options require frequent payments and can be expensive. Bank loans typically offer the best terms and interest rates, whereas merchant cash advances can be the most expensive option for working capital.
Some online working capital loans are available in amounts up to $500,000 or more, whereas SBA working capital loans max out at $5 million. Working capital loans are usually available in lower funding amounts since they’re used to cover short-term expenses.
Last updated on May 19, 2025
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 and our editorial guidelines.
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.
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