Best Working Capital Loans of 2017

Small Business, Small Business Loans

Working capital loans can help you pay for operational costs, such as rent, payroll and debt payments. They give you the flexibility to invest in your company’s growth and cover day-to-day expenses, but you shouldn’t use them for long-term investments, such as real estate.

Banks offer the lowest financing rates on these loans, so if you own an established business with strong cash flow, you may want to start there. But if the bank says no or if you need cash fast, you can turn to alternative lenders.

Working capital loans: Compare your options

In the table below, scroll right to see all the lenders.

Working capital loans
Kabbage_Logo_150x40
ondeckStreet Sharessmartbizfundingcirclebluevinefundbox
Best forFast fundingBusinesses with strong cash flowSmaller purchasesLow-rate SBA loansBusinesses with low revenueBusinesses with strong cash flowBusinesses with large unpaid customer invoicesBusinesses with unpaid customer invoices
Loan details
Loan amount$2,000 - $150,000$5,000 - $500,000$2,000 - $100,000$30,000 - $350,000$25,000 - $500,000$10,000 - $1 million$20,000 - $2 million$1,000 - $100,000
APR24% - 99%9% - 99%9% - 40%8.5% - 9.21%7.4% - 36%8% - 25%17% - 60%16.4% - 76.5%
Minimum qualifications
Personal credit scoreNo minimum credit score500 600Under $150K: 600
Over $150K: 650
620640530No minimum credit score
Annual revenue$50,000$100,000$25,000$50,000None required$200,000$120,000None required
Time in business1 year1 year1 year2 years2 years2 years3 monthsSix months of activity in compatible accounting software
Apply now at Kabbage
Apply now at OnDeck
Apply now at StreetShares
Apply now at SmartBiz
Apply now at Funding Circle
Apply now at Bond Street
Apply now at BlueVine
Apply now at Fundbox

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For more details

Working capital loans for everyday needs

Working capital loans for large purchases

Working capital loans if you have unpaid customer invoices

Working capital loans for everyday needs

The term working capital can encompass virtually every facet of your finances, but ultimately you need it to, well, keep your company working. That could include coping with seasonal dips in revenue, covering maintenance costs, keeping your payroll up to date or managing your inventory.

If your personal credit score is at least 500: Kabbage offers a quick working-capital line of credit up to $150,000.

  • Pro: Good option for borrowers with poor credit who need fast cash
  • Con: Annual percentage rates can reach 99%

If your personal credit score is more than 600: StreetShares is a peer-to-peer lender that offers lines of credit and term loans to businesses making at least $25,000 a year.

  • Pro: Good option for businesses with low revenue
  • Con: Can borrow only up to 20% of your annual revenue

If your business needs more than $100,000, a term loan from OnDeck is an option.

  • Pro: High borrowing amounts of up to $500,000. Minimum personal credit score is 500, but most borrowers have 660 or higher.
  • Con: APRs can reach 99%


Kabbage_Logo_150x40
ondeck
Street Shares
Good option if you:
  • Have bad personal credit
  • Need fast cash
  • Have bad personal credit
  • Own a business with strong cash flow
  • Own a retail or food service business
  • Have good personal credit
  • Own a business with lower revenue
Do you qualify?
  • No minimum credit score
  • 1+ year in business
  • $50,000+ in annual revenue
  • Must have a business checking, payment platform or accounting software account

  • 500+ personal credit score (most borrowers have 660 or higher)
  • 1+ year in business
  • $100,000+ in annual revenue
  • 600+ personal credit score
  • 1+ year in business
  • $25,000+ in annual revenue
Borrow:
$2,000 to $150,000$5,000 to $500,000 $2,000 to $100,000
APR:
24% to 99%9% to 99% 9% to 40%
Apply now at Kabbage
Apply now at OnDeck
Apply now at StreetShares

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Working capital loans 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.

For lowest rates and longest repayment period: SmartBiz provides Small Business Administration loans to established businesses.

  • Pros: Lowest APRs on the market and a 10-year repayment term
  • Con: Application process is rigorous and it takes longer to get funding — typically several weeks, compared with a few days with other online options

For quick funding and competitive rates: Funding Circle offers loans of up to $500,000 and is a good option for good-credit borrowers.

  • Pros: Competitive APRs for borrowers who want cash fast; no minimum revenue required
  • Con: Not for newer businesses

Bond Street offers loans of up to $1 million for businesses with strong cash flow.

  • Pro: Can get funding in three to four business days
  • Con: Higher personal credit requirement compared with other options


smartbiz
fundingcircle
Good option if you:
  • Have good personal credit
  • Need long-term capital
  • Want low rates
  • Prefer SBA loans
  • Have good personal credit
  • Own an established business
  • Have good personal credit
  • Own a business with strong cash flow
Do you qualify?
  • 600+ personal credit score for loans of $30,000 to $150,000
  • 650+ personal credit score for loans of more than $150,000
  • 2+ years in business
  • $50,000+ in annual revenue
  • 620+ personal credit score
  • 2+ years in business
  • No minimum annual revenue required
  • 640+ personal credit score
  • 2+ years in business
  • $200,000+ in annual revenue
Borrow:
$30,000 to $350,000$25,000 to $500,000
$10,000 to $1 million
APR:
8.5% to 9.21%7.4% to 36%8% to 25%
Apply now at SmartBiz
Apply now at Funding Circle
Apply now at Bond Street


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Working capital loans if you have 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 financing. It’s a good option when you’re in a pinch, although high APRs do make these services pricey.

For businesses with strong-credit customers: BlueVine can front you cash of up to $2 million even if your business is less than a year old and you have poor credit.

  • Pro: Good way to tap into a customer’s strong credit score
  • Con: If your customer doesn’t pay you, you’re still on the hook for the loan

For businesses with shaky credit: If you need fast financing, Fundbox can get you cash in one to three business days.

  • Pro: No minimum revenue or personal credit score required to qualify
  • Con: Must have access to accounting software like QuickBooks


bluevine
fundbox
Good option if you:
  • Have bad personal credit
  • Own a business with strong-credit customers
  • Own a newer business
  • Have bad personal credit
  • Need fast cash
  • Want to finance smaller invoices
Do you qualify?
  • 530+ personal credit score
  • 3+ months in business
  • $120,000+ in annual revenue
  • No minimum credit score
  • Must use online accounting software such as QuickBooks, FreshBooks or Xero
  • No annual revenue requirement
Borrow:
$20,000 to $2 million$1,000 to $100,000
APR:
17% to 60%16.4% to 76.5%
Apply now at BlueVine
Apply now at Fundbox

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Evaluate small-business loans carefully

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.

Jackie Zimmermann is a staff writer at NerdWallet, a personal finance website. Email: jzimmermann@nerdwallet.com. Twitter: @jackie_zm

Updated July 10, 2017.