Best Working Capital Loans of May 2025

Loan	NerdWallet Rating	Best For	Max loan amount	Min. credit score	APR range	Max term length	Learn more
SBA 7(a) loan Read review See Your Loan Options with Fundera by NerdWallet		Best for large loan amounts	$5,000,000	650	10.50-14.00%	25 years	See loan options with Fundera by NerdWallet
Fora Financial - Online term loan Read review See Your Loan Options with Fundera by NerdWallet	4.7 /5	Best for bad credit borrowers	$1,500,000	570	Undisclosed	18 months	See loan options with Fundera by NerdWallet
Giggle Finance - Merchant cash advance Read review See Your Loan Options with Fundera by NerdWallet		Best for no credit check	$10,000	300	Undisclosed		See loan options with Fundera by NerdWallet
Bluevine - Line of credit Read review See Your Loan Options with Fundera by NerdWallet	5.0 /5	Best for lines of credit	$250,000	625	14.00-48.00%	6 months	See loan options with Fundera by NerdWallet
Headway Capital - Line of credit Read review See Your Loan Options with Fundera by NerdWallet	4.7 /5	Best for flexible repayment options	$100,000	625	35.00-80.00%	24 months	See loan options with Fundera by NerdWallet
Fundbox - Line of credit Read review See Your Loan Options with Fundera by NerdWallet	4.9 /5	Best for startup businesses	$150,000	600	36.00-99.00%	6 months	See loan options with Fundera by NerdWallet
iBusiness Funding - Online term loan Read review See Your Loan Options with Fundera by NerdWallet	4.2 /5	Best for established businesses that need fast financing	$500,000	660	15.22-45.00%	7 years	See loan options with Fundera by NerdWallet

A closer look at our picks for the best small business loans

Low interest rate

SBA 7(a) loan

Read Review

See your loan options

with Fundera by NerdWallet

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.

Pros

Large borrowing maximums.
Interest rates are capped.
Long repayment terms available.

Cons

Collateral is typically required.
Longer processing times than online lenders.

Read Review

See your loan options

with Fundera by NerdWallet

Fora Financial - Online term loan

4.7 NerdWallet rating

Read Review

See your loan options

with Fundera by NerdWallet

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.

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.

Read Review

See your loan options

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Giggle Finance - Merchant cash advance

Read Review

See your loan options

with Fundera by NerdWallet

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.

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.

Read Review

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May fund quickly

Bluevine - Line of credit

5.0 NerdWallet rating

Read Review

See your loan options

with Fundera by NerdWallet

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.

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.

Read Review

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Headway Capital - Line of credit

4.7 NerdWallet rating

Read Review

See your loan options

with Fundera by NerdWallet

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.

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.

Read Review

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May fund quickly

Fundbox - Line of credit

4.9 NerdWallet rating

Read Review

See your loan options

with Fundera by NerdWallet

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).

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).

Read Review

See your loan options

with Fundera by NerdWallet

May fund quickly

iBusiness Funding - Online term loan

4.2 NerdWallet rating

Read Review

See your loan options

with Fundera by NerdWallet

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.

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.

Read Review

See your loan options

with Fundera by NerdWallet

Table of contents

👉 Have bad credit?

Check out NerdWallet's best

business loans for bad credit

for more financing options.

A closer look at our top picks for working capital loans

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 a
650
+ credit score and
24
+ 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
% to
14
%.
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 a
570
+ credit score and
6
+ 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 to
18
months.
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.
Requires
3
+ 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 a
625
+ credit score and
12
+ 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.
I nterest rate range:
14
% to
48
%.
Repayment term:
6
months.
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 a
625
+ credit score and
6
+ 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
% to
80
%.
Repayment term:
12
, 18 or
24
months.
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 a
600
+ credit score and
3
+ 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
% to
99
%.
Repayment term:
3
or
6
months.
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 a
660
+ credit score and
24
+ 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
% to
45
%.
Repayment term: Up to
84
months.
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.

What is a working capital loan?

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.

When you should consider a working capital loan

You might need a working capital loan in the following situations:

Cash with a green percentage sign on the top-right corner.

Inconsistent cash flowBusinesses that see seasonal fluctuations in sales or have bill due dates that don’t always align with their monthly cash receipts may experience cash flow gaps.

New business opportunityTaking on a new client, accepting a large order or expanding a business operation can require more capital than a business has available.

Unexpected expensesRandom expenses can disrupt a business’s budget if there’s no emergency fund set aside.

Types of working capital loans

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.

Business lines of credit

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

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.

SBA lines of credit

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.

Invoice factoring

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 (MCAs)

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.

Where to get a working capital loan

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 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

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

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:

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

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.

Frequently asked questions

Can I get a working capital loan with bad credit?

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.

What are the disadvantages of working capital loans?

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.

How much can I get for a working capital loan?

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

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Testimonials

"I was on the market for small business funding to help expand my business and they were able to get me funded in record time, with a great amount and better rates than I was getting with other companies."

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See all reviews on

4.3 Excellent

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

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Meet the editorial team

Randa Kriss

Senior Writer & Content Strategist | Small business

Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured in The Washington Post, The Associated Press, MarketWatch and Nasdaq, among other publications. She has also hosted a webinar as part of the SBA's 2024 National Small Business Week Virtual Summit. Randa is passionate about helping small-business owners make educated financial decisions, especially when it comes to affordable funding. She is based in New York City.

Working Capital Loans: Overview and Best Options

A closer look at our picks for the best small business loans

SBA 7(a) loan

Fora Financial - Online term loan

Giggle Finance - Merchant cash advance

Bluevine - Line of credit

Headway Capital - Line of credit

Fundbox - Line of credit

iBusiness Funding - Online term loan

👉 Have bad credit?

A closer look at our top picks for working capital loans

SBA 7(a) loan

Fora Financial

Giggle Finance

Bluevine

Headway Capital

Fundbox

iBusinessFunding

What is a working capital loan?

When you should consider a working capital loan

Types of working capital loans

Where to get a working capital loan

Pros and cons of working capital loans

How to get a working capital loan

Alternatives to working capital loans

For newer businesses

For those who can’t qualify for traditional financing

For those looking to avoid debt

Frequently asked questions

Testimonials

Methodology

Small-Business Grants: Where to Find Free Funding

SBA Loan Overview: Types, Pros and Cons, How to Apply

Best Startup Business Loans of April 2025